Shanghai Fosun Pharmaceutical Group Co. Ltd. (SH 601 176 6881) has announced plans to advance its proposed merger with Henlius Biotech Co. Ltd. (ASIA:600 088), a Chinese biotech company. Fosun, a leading pharmaceutical company, and Henlius, a biotech company, have previously agreed to merge, with Fosun acquiring a 47.2% stake in Henlius. The merger aims to create a leading pharmaceutical and healthcare company in China. The merged entity is expected to have a market value of around $15 billion, making it one of the largest healthcare companies in China. The deal is subject to regulatory approvals, which are expected to be completed by the end of 2023.
Industry analysts have expressed positive sentiments on the merger, with some forecasting a potential 20-30% rise in Fosun’s share price as a result of the deal. Fosun’s strong distribution network and Henlius’s extensive product portfolio are expected to create a powerful business model. The merged company will have a diverse portfolio of pharmaceuticals, vaccines, and biologics, positioning it for future growth and potential innovative product launches. The merger is also expected to increase Fosun’s research and development capabilities, as well as its presence in the global market.