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Grifols (MCE: GRF, MCE: NSDQ: GRFS), a Barcelona maker of plasma-based medicines, acquired a 26% stake in Shanghai RAAS (SHZ: 002252), one of China’s largest blood plasma companies, for $1.9 billion in a non-cash deal. Grifols will exchange a 45% ownership in its US subsidiary, Grifols Diagnostic Solutions, for the Shanghai RAAS stake. As part of the agreement, Shanghai RAAS will become exclusive distributor of Grifols’ plasma-based and diagnostic products in China, including Grifol’s nucleic acid test (NAT) systems used to screen plasma donors for HIV and HCV.
In China, demand is rising for human serum albumin, a blood-plasma derivative used to treat liver diseases, while China maintains tight control on blood donation sites. Grifols is the world’s largest manufacturer of immunoglobulin. The Spanish company will also provide technology and know-how to Shanghai RAAS, as well as engineering services in exchange for fees.
Grifols offers plasma protein replacement therapies for rare diseases. Under the Strategic Alliance Agreement, the two companies will manufacture, market and develop plasma products and transfusion diagnostic solutions for China’s market.
Grifols said China is one of the fastest growing markets for plasma products and an important market for its NAT technology. The alliance is part of Grifols’ global expansion strategy that will particularly benefit its Bioscience and Diagnostic Divisions. The agreement stipulates that Shanghai RAAS will use Grifols’ NAT technology to screen plasma donations throughout its network of 41 plasma collection centers.
Grifols’ 26.2% stake in Shanghai RAAS will make the company the second largest shareholder in RAAS. It will transfer a non-majority share in Grifols Diagnostics Solutions (45% economic and 40% voting rights) to RAAS, maintaining Grifols’ operating control of the US-based company.
Grifols, which will appoint three members to the nine-member Shanghai RAAS Board of Directors, will have veto rights in matters such as share issuance, divestment of material assets, mergers and bylaw amendments, among others, in addition to subscription rights in possible capital increases. Shanghai RAAS will have a member on the GDS board.
Grifols has 190 blood collection centers in the US and 35 in Europe. Last year, Grifols signed a deal to build and manage plasma collection centers in China with Boya Bio-Pharmaceutical Group. The initial capital invested was $56 million. Although the collected plasma will initially go to Boya, Grifols has the right to 50% of the product, once China’s government agrees.
Source: China Biotoday
