SHANGHAI (Reuters) -U.S. drugmaker Bristol Myers Squibb said on Tuesday it has signed an agreement to sell its 60% ownership stake in a pharmaceutical joint venture in China.
“As part of our long-term strategy, we continue to align our resources to support evolving business needs across our global network,” a spokesperson for the company said in an emailed response to Reuters’ queries about a local media report.
The spokesperson said Bristol Myers was “committed to supporting all impacted employees” and was “grateful for their contributions”, but said it does not comment on transaction details, citing policy.
Established in 1982, the Sino-American Shanghai Squibb Pharmaceuticals Limited (SASS) joint venture was the first Sino-U.S. pharmaceutical joint venture in the country.
A manufacturing facility in Shanghai, part of the venture, was one of China’s first modern pharmaceutical manufacturing bases and was key to bringing new technology expertise to China, Bristol Myers said in its 2010 annual report.
The venture has supplied a variety of medicines including metformin and paracetamol, research papers reviewed by Reuters showed.
Bristol Myers would be the latest drugmaker planning to sell off some Chinese assets following supply chain disruptions, China’s economic slowdown and price cuts to get state insurance listing.
Its agreement follows similar actions by foreign firms including the Swiss Group Sandoz and Belgium’s UCB.
(Reporting by Andrew Silver in Shanghai; Editing by Jacqueline Wong)
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