CRC Group Continues Expansion with $1.8 Billion Acquisition

In a major strategic move in the pharmaceutical industry, China Resources Boyalife announced on July 19, 2024 that it will fully acquire the entire equity of Green Cross Hong Kong Holdings Limited held by GC Group for a transaction value of 18.2 billion yuan. This decision marks another major breakthrough in the field of blood products and further consolidates its leading position in the Chinese market.

Green Cross (China) Biological Products Limited, a wholly owned subsidiary of Green Cross Hong Kong Holdings Limited, is a leader in the domestic blood products industry, especially in the production and sales of human Factor VIII and recombinant Factor VIII. At present, the company has 16 products covering 6 major varieties, and the pulp production volume in 2023 reached 104 tons, showing its strong research and development and production capacity.

China Resources Pharma's deep insight and long-term commitment to the blood products industry makes this acquisition particularly critical. As a senior participant in the Chinese pharmaceutical market, CRM has always firmly believed that the field of blood products has high barriers and stable competitive landscape, so through the merger and integration strategy, it continues to improve its competitiveness in this field. Since the successful acquisition of Boya Biology in 2021, China Resources Medicine has become more determined in the blood products track.

Although the 18.2 billion yuan M&A deal poses a challenge to the 2023 net profit level of China Resources Bioscience, the long-term value of this investment cannot be ignored given Green Cross China's deep accumulation in blood coagulation products and its improving pulp extraction technology. The brand influence and market penetration of Green Cross (China) will bring significant synergies to CR Boyalife, further enhancing its market share and profitability in the industry.

Going forward, China Resources Pharma expects to maintain the pace of acquisitions in the blood products sector through continued resource integration and strategic investments, with a view to establishing a more solid dominant position in this high-growth, high-value market. This strategic decision will not only promote the business development of China Resources Pharmaceutical, but also have a profound impact on the development pattern of the entire Chinese pharmaceutical industry.