UCB Divests Mature Neurology and Allergy Portfolio in China for $680M

UCB Divests Mature Portfolio:
UCB is selling its mature neurology and allergy business in China to CBC Group and Mubadala for $680 million. This includes established brands like Keppra, Vimpat, Neupro, Zyrtec, and Xyzal, along with a manufacturing site in Zhuhai.

Strategic Shift:
The divestment marks a strategic shift for UCB towards innovation and partnerships in China, focusing on launching novel treatments in immunology, neurology, and rare diseases.

CBC and Mubadala Partnership:
CBC Group and Mubadala are well-positioned to drive the future growth of UCB's former portfolio, leveraging their expertise and resources to enhance the availability and efficiency of these treatments in China.

Financial Impact:
The deal is expected to close in Q4 2024 and will not affect UCB's financial guidance for 2024. However, a slight dilution of the adjusted EBITDA margin is anticipated for 2025.

Market Presence:
The combined net sales for these medicines in China totaled €131 million in 2023, illustrating their significant market presence.