The American pharmaceutical company Bristol Myers Squibb (BMS) announced on Tuesday, September 16, that it has signed an agreement to sell its 60% stake in a joint venture in China as part of its global business restructuring strategy.
A company spokesperson told Reuters in response to inquiries, “As part of our long-term strategy, we are continuously adjusting resources to support the evolving business needs in our global network.”
BMS also informed the prominent pharmaceutical information website “Fierce Pharma” via email that the deal involves the transfer of its stake in Sino-American Shanghai Squibb Pharmaceuticals (SASS). The company did not disclose the details of the transaction or the financials, but stated that it will assist affected employees and ensure a smooth transition process that respects their rights.
Established in 1982, SASS is a joint venture pharmaceutical company between Bristol Myers Squibb and Sinopharm Foreign Trade Corporation, the first Sino-American pharmaceutical factory after China’s reform and opening-up.
According to information on the BMS official website, SASS operates a pharmaceutical factory in Shanghai covering an area of approximately 58,000 square meters, producing antibiotics, cardiovascular drugs, pain relievers, and drugs for metabolic disorders, making it one of the earliest modern pharmaceutical facilities in China. The transaction will include the factory and several product lines specifically for the mainland Chinese market.
These products include commonly used medications such as metformin and paracetamol. According to the Chinese National Medical Products Administration database, SASS has registered multiple prescription and over-the-counter drugs and holds complete licenses for drug production and sales in the Chinese market.
This sale marks Bristol Myers Squibb as another foreign pharmaceutical company adjusting its assets in China. In recent years, challenges such as supply chain disruptions, economic slowdown, and pricing pressures to qualify for the national medical insurance catalog have made it increasingly difficult for foreign enterprises to operate in the Chinese market.
Similar to BMS, Switzerland’s Sandoz Group AG and Belgium’s UCB SA have also announced downsizing their business operations in China in recent months, indicating that foreign pharmaceutical companies are accelerating the reassessment of their long-term footprint in China.