Quick Take: Fosun to Develop Drugs, Devices With New U.S. Unit
Chinese conglomerate Fosun Group is kicking off its overseas investment this year with a plan to set up a U.S. subsidiary to produce pharmaceuticals and develop medical-device businesses.
The unnamed new company — involving an investment of $50 million — will manufacture drugs targeting overseas markets, and develop a line of medical devices and medical diagnosis businesses, according to a statement Wednesday from Fosun’s pharmaceutical unit, Shanghai Fosun Pharmaceutical (Group) Co. Ltd.
The new subsidiary will be jointly held by Fosun’s investment body, Fosun International Ltd., and its established U.S. unit, Fosun Pharma USA Inc., according to the Fosun Pharma statement.
Pharmaceuticals have been Fosun’s core business since the 1990s. The company expanded overseas in recent years mainly through mergers and acquisitions. Some of its deals last year included taking majority stakes in Swedish respiratory machine-maker Goldcup and Indian drugmaker Gland Pharma.
Beijing has warned dealmakers to moderate their investment risks. Commercial banks were ordered last year to study bad-loan risks involving companies, including Fosun. Nevertheless, Fosun has sought to increase overseas investments in insurance, pharmaceuticals and resorts.
Fosun International will continue to invest in companies according to three themes — “health, wealth and recreation” — with specific interest in Europe and the U.S., the company said during an earnings meeting in August 2017.
It also expressed interest in buying startups valued at $1 billion or above, and is interested in healthcare companies that employ artificial intelligence technology.
Contact reporter Coco Feng (email@example.com)
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas