(Yicai) July 9 -- UK consumer healthcare giant Haleon has completed the acquisition of the remaining equity interest it did not yet own in Tianjin Smith Kline & French Pharmaceutical, its over-the-counter joint venture in China.

Haleon purchased the last 12 percent stake in TSKF from Tianjin Pharmaceutical Da Ren Tang Group for a total consideration of CNY1.6 billion (USD220 million), making it a wholly-owned subsidiary, the Weybridge-based firm announced on June 27.

Last September, Haleon said it would increase its stake in TSKF to 88 percent from 55 percent by acquiring a 20 percent stake from Tianjin Pharmaceutical Group and a 13 percent stake from DRTG for a total of CNY4.5 billion. Moreover, Haleon and DRTG agreed to an option for the former to buy the latter's remaining 12 percent stake in TSKF, which was activated in April.

"China is a key market for Haleon, which is underpinned by favorable structural drivers," Haleon noted. "TSKF accounted for 40 percent of Haleon's China revenues in 2024."

The acquisition of TSKF will enable growing OTC markets globally and deliver increased strategic and operational flexibility to Haleon, the company added.

"Demand for nutritional supplements will increase, particularly for products that enhance immunity," Gu Haiying, general manager for the Chinese mainland and Hong Kong at Haleon, told Yicai. "As health awareness rises, related consumption behaviors will also increase, driving the growth of the entire category."  

TSKF was founded in 1984 by the three shareholders. It is a leading OTC company that manufactures and distributes renowned products under Haleon's brands in China, such as Fenbin, Contact, Bactroban, Voltaren, and Flixonase in major therapeutic areas, including pain relief, respiratory health, and skin health.

In recent years, TSKF has accelerated its expansion in the Chinese regional market by establishing branches in Chengdu, Guangzhou, Shanghai, and Xi'an, aiming to enhance product penetration in lower-tier markets.

Editor: Futura Costaglione