Carlyle to acquire 5% stake in Salubris, a leading biopharmaceutical company in China
Parties form strategic partnership to capture strong momentum in China’s pharma industry
Shanghai – Global investment firm The Carlyle Group (NASDAQ: CG) today announced that CA Roam Holdings, an affiliated entity of CAP V Mauritius Limited (together, “Carlyle”), has agreed to acquire 5% of Shenzhen Salubris Pharmaceutical (“Salubris”) (SZSE: 002294), one of the leading biopharmaceutical players in China.
Founded in Shenzhen in 1998, and listed on the Shenzhen Stock Exchange in 2009, Salubris is one of the top 20 biopharmaceutical companies in China by market cap, in an industry of over 5,000 players. Salubris operates two business segments covering finished drugs and the sale of medical devices, and has built a leading presence in innovative drugs globally. The company has developed a comprehensive innovative pipeline in the treatment of chronic diseases, including JK07, an innovative biologic drug treating heart failure which has filed for clinical trial approvals in both China and the United States. Salubris is now the second largest domestic company in the cardio- and cerebrovascular (CCV) segment in China.
China’s pharmaceutical market is expected to see sustained secular growth, driven by societal aging, increasing awareness and affordability, and continued biotech innovation. Leaders proactively building drug pipelines, comprising of both high-quality generics and innovative drugs, are starting to gain market share amid greater consolidation in the generic drug market and an increasing focus on quality, price and innovation.
Through this transaction, Carlyle and Salubris will combine their respective strengths to accelerate Salubris’s development into a global innovative pharmaceutical company. Salubris will leverage Carlyle’s industry expertise, network and resources to drive global and domestic expansion through organic growth as well as M&A. Furthermore, Salubris will draw upon Carlyle’s global clinical resources to seek to advance the research and development (R&D) of its global innovative products.
Ling Yang, a Managing Director of the Carlyle Asia Buyout advisory team, commented: “We are excited to have the opportunity to invest in Salubris, which has emerged as a leading player in the world’s second largest pharmaceutical market. Salubris has one of the strongest franchises in CCV in China, and has made significant progress in developing an innovative drug pipeline through both in-house R&D as well as strategic M&A and licensing deals. We are impressed by what Kevin and his team have been able to build over the years, and very much look forward to drawing on Carlyle’s global resources to support the company’s future growth.”
Kevin Ye, CEO and Director of Salubris, commented: “As China’s industry landscape continues to transform, we are focused on further strengthening Salubris’s innovative drug pipeline and building upon the company’s leading franchise in CCV. As one of the largest private investment firms with an extensive track record in healthcare investing across the world, Carlyle’s significant experience, resources and network will be extremely valuable in our efforts, particularly as we look to optimize our operations and develop our international footprint. We’re delighted to welcome Carlyle on board as a partner and look forward to our long-term close collaboration with them.”
The Carlyle Group has a well-established history of investing in the healthcare sector, both in China and globally, fueled by a deep understanding of the market and an ability to create value through its operational expertise and close partnerships with management.
Carlyle has invested more than US$13.4 billion of equity in more than 80 deals in the global healthcare sector as of June 30, 2020. Its healthcare investments in China include the third-party independent clinical laboratory Adicon, the global peptide APIs manufacturer Ambio, hi-tech medical device pioneer MicroPort, the leading medical group Zhongmei Healthcare, among others. Carlyle’s global medical investments include the leading global contract research organization PPD, the US-based medical and pharmaceutical product R&D service provider and active ingredient and OTC drug manufacturer AMRI, the US-based drug producer MedPointe, the Australia-based drug manufacturer and distributor iNova, among others.
Carlyle is a long-standing global investment firm with operations in China, making investments in this market for over two decades. With global resources, deep industry expertise and strong local knowledge, Carlyle has invested more than US$9.5 billion of equity in over 100 transactions across China as of June 30, 2020.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $221 billion of assets under management as of June 30, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,800 people in 31 offices across six continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.
Founded in 1998 and headquartered in Shenzhen, China, Shenzhen Salubris Pharmaceuticals Co., Ltd. (SZSE: 002294) is a comprehensive pharmaceutical company that integrates pharmaceutical products research and development, production and business sales.
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