GC Biopharma sells HK subsidiary to CR Pharm Group for $254 mn

South Korea’s GC Biopharma Corp. announced on Wednesday that it signed a share purchase agreement (SPA) to sell all its shares in its Hong Kong subsidiary to a subsidiary of China Resources Pharmaceutical Group.

The total sale amount is 350 billion won ($254 million).

Last year, China Resources recorded sales of $34 billion. GC Biopharma stated that this sale would enhance its financial stability and secure funds for future business investments.

GC Biopharma expects its export to the Chinese market will gain momentum through the contract with CR Pharmaceutical, which has a nationwide distribution network in China.

GC Biopharma announced that it will supply CR Pharmaceutical with the blood product Albumin and the genetically recombinant hemophilia treatment GreenGene F, both produced at its Ochang plant in North Chungcheong Province. The contract size is about 85 billion won ($61.7 million).

The company plans to maximize the efficiency of blood product production by exporting one of the by-products, immunoglobulin, to the US and albumin to China.

China Resources Pharmaceutical Group will also distribute GC Wellbeing’s hyaluronic acid fillers in China.

Write to Young-ae Lee at 0ae@hankyung.com