UCB, a global biopharmaceutical leader, has announced the successful completion of its sale, divestment, and licensing agreement for its mature neurology and allergy portfolio in China. The transaction, valued at $680 million, transfers ownership of key products, including Keppra®, Vimpat®, Neupro®, Zyrtec®, Xyzal®, and UCB’s Zhuhai manufacturing facility, to a new entity, NeuroGen Pharma, established by CBC Group, Asia’s largest healthcare-focused asset manager, and Mubadala Investment Company, a global investment firm based in Abu Dhabi.
The move ensures continued access to these trusted treatments for patients in China, leveraging the strong foundation built by UCB’s China team over the years and the healthcare expertise of CBC Group and Mubadala.
Scope of the Transaction
The deal covers UCB’s neurology portfolio (Keppra®, Vimpat®, Neupro®) and allergy portfolio (Zyrtec®, Xyzal®), alongside the Zhuhai manufacturing site. These products generated combined net sales of €131 million in China in 2023.
The transaction was finalized following the fulfillment of all closing conditions, including regulatory approvals such as anti-trust clearance. It does not affect UCB’s financial guidance for 2024. For 2025, UCB anticipates a marginal dilution of its adjusted EBITDA margin but expects it to remain at the lower end of the low-to-mid-thirties range as a percentage of revenue.
Advisory roles:
- Lazard served as UCB’s financial advisor.
- Freshfields Bruckhaus Deringer acted as UCB’s legal counsel.
Strategic Shift Towards Innovation
As UCB transitions away from mature products, the company is sharpening its focus on introducing innovative therapies to address unmet medical needs in China. Central to this strategy is a new commercialization agreement with BioRay, a leading China-based biopharma company specializing in autoimmune diseases, to bring Bimzelx® to the Chinese market.
Bimzelx®, UCB’s novel treatment for autoimmune conditions, received regulatory approval in 2024 for two indications:
- Ankylosing spondylitis (AS) in July.
- Non-radiographic axial spondyloarthritis (nr-axSpA) in September.
BioRay, a company with 13 years of biologics manufacturing experience, operates four R&D centers across China and the United States and maintains a robust pipeline of 20 products. This partnership will help UCB expand access to its innovative therapies while utilizing BioRay’s local expertise.
Building on a Legacy of Care in China
“UCB has been dedicated to improving the lives of patients in China for nearly three decades,” said Jean-Christophe Tellier, CEO of UCB. “This agreement enables us to accelerate our commitment to innovation, focusing on bringing new and impactful therapies to the Chinese market through strong partnerships. Our collaboration with BioRay underscores our mission to address critical health needs with innovative solutions.”
Dr. Wang Haibin, CEO of BioRay, expressed optimism about the partnership, stating: “We are thrilled to collaborate with UCB, a global leader in developing novel medicines for immunological diseases. Bimzelx® is a groundbreaking product addressing the pressing need for new treatment options. Together, we are committed to meeting the growing demand from millions of patients in need.”
Ensuring Continued Access
To ensure a seamless transition, NeuroGen Pharma, the newly established CNS-focused entity created by CBC Group and Mubadala, will take over UCB’s legacy neurology and allergy portfolio. This entity will build on the foundation laid by UCB’s China team while benefiting from CBC Group’s extensive healthcare expertise and platform synergies in the region.
This move not only secures reliable access to trusted treatments for Chinese patients but also aligns with UCB’s long-term strategy to prioritize innovation and unmet medical needs.
A Future Focused on Innovation
The sale of its mature portfolio marks a pivotal moment in UCB’s evolution in China, reflecting its broader mission to address global health challenges with cutting-edge treatments. By leveraging partnerships with companies like BioRay, UCB is well-positioned to introduce transformative therapies, ensuring that patients in China continue to benefit from medical advancements.
With the financial strength from the $680 million transaction and a renewed focus on innovation, UCB reaffirms its commitment to improving lives worldwide, particularly in high-need markets like China.
