Nasdaq-listed biopharmaceutical firm China Biologic Products Holdings suspended the trading of its shares on Wall Street on Wednesday, after the completion of a take-private deal sponsored by a Chinese buyout group that valued the firm at about $4.76 billion.
The consortium is led by entities affiliated with Centurium Capital, a private equity (PE) firm founded by former Warburg Pincus partner David Li. Other investors in the consortium include Chinese PE company CITIC Capital; Asia-focused Hillhouse Capital; and V-Sciences Investments, a subsidiary of Singapore’s Temasek Holdings, among others.
China Biologic signed the deal in November 2020, in which the investors had agreed to pay $120 per share in cash to privatise the firm through its merger with CBPO Group Limited. China Biologic will cease to be a publicly-traded company as a result of the deal.
China Biologic’s privatisation comes after the firm rejected a $3.9-billion offer from a consortium led by its former CEO David Gao in August 2018. The previous bidding group, which also included GL Capital Group, Bank of China Group Investment, and CDH Investments, had offered $118 per share.
Founded in 2002 and listed in 2009, China Biologic operates as a biopharmaceutical firm that delivers plasma products including albumin, immunoglobulin for intravenous injection, and coagulation factor products, according to its website. Headquartered in Beijing, the firm manufactures over 20 different dosage forms of plasma products.
China Biologic is also engaged in the sale of medical devices, primarily regenerative medical biomaterial products, to hospitals, distributors, and other healthcare facilities in China after its acquisition of TianXinFu (Beijing) Medical Appliance in 2018.
In its latest financial results, the firm registered $344.4 million in gross profit in 2020, up 4.6% from 2019. Its net income increased by 9.7% to $152.3 million in 2020.