Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Britain's AstraZeneca launches $1 billion China investment fund with CICC

Stock MarketsNov 05, 2019 06:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

SHANGHAI (Reuters) - AstraZeneca (L:AZN) said it is launching a new fund with China International Capital Corporation (CICC) to invest $1 billion in China's healthcare sector, as it expands its research work in the country.

The fund would look to invest in Chinese firms, with companies in a life-sciences park it helped open in the eastern city of Wuxi last year to be among its first beneficiaries, the British drugmaker's chief executive officer, Pascal Soriot, told Reuters.

AstraZeneca was a minority partner in the fund and would mainly play an advisory role in selecting investments and supporting the firms, he said. The companies did not disclose financial details of the deal.

"It's a substantial investment on our side, but also our financial partners," Soriot said of the agreement, to be signed with the Chinese investment bank CICC on the sidelines of the China International Import Expo on Wednesday.

"We can help choose some of those investments but we can also help along the way the startup companies, develop products and find their way around the world" he said, describing it as AstraZeneca's largest-scale healthcare industrial fund.

The company also planned to expand an existing research and development center in Shanghai from 450 employees to 1,000, and establish a new artificial intelligence innovation center in the city.

Western drugmakers have profited from partnerships in China, where AstraZeneca's sales have doubled since 2012, as well as a softening in the regulatory environment for pharmaceutical firms.

But the government has also been trying to slash drug prices, changing the playing field as many firms had relied in the past on selling older drugs at premium prices. In September, China also expanded a pilot bulk-buying program to the entire country in an attempt to negotiate lower prices from drug manufacturers.

Soirot said these were both factors in AstraZeneca's decision to make those investments in China, as the price pressures were encouraging companies to create new drugs that the government was approving and reimbursing at a faster pace.

AstraZeneca, he said, wanted to start making drugs it could export globally from China. Areas of opportunity included oncology and respiratory diseases.

"Historically, until today, our Chinese team has been developing global products for the Chinese market. We want now the Chinese team to take the global leadership on some projects," he said.

Britain's AstraZeneca launches $1 billion China investment fund with CICC
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
KC Master Tanto
KC Master Tanto Nov 05, 2019 8:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
smart move
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email