DKSH, the leading Market Expansion Services provider with a focus on Asia, today announced the transfer of two own pharmaceutical brands Combizym and Hirudoid to CMS, a leading Chinese pharmaceutical services provider. This selective divestment further optimizes DKSH's healthcare own brands portfolio in mainland China and emphasizes DKSH's strategy as a niche specialist in the Chinese market.
Media release
Zurich, Switzerland, March 26, 2015 – DKSH and China Medical System Holdings Limited (CMS), a leading pharmaceutical services provider, have today signed an agreement for the transfer of Combizym and Hirudoid, two pharmaceutical brands owned and marketed by DKSH in China.
Combizym's current market presence is almost uniquely focused on China and therefore the entire business will be handed over to CMS. Hirudoid is today marketed and distributed by DKSH on a regional basis. Here, the transaction solely comprises the purchase of Hirudoid products in mainland China. DKSH will continue to expand the brand outside of China and to source the products for the Chinese market.
The Chinese pharmaceutical market is one of the world's biggest, yet highly fragmented and competitive. The transaction allows DKSH to consistently implement its China strategy for sustainable, profitable growth as a Market Expansion Services provider in selective niches.
Bruno Sidler, Chief Operating Officer of DKSH said: “CMS with its 1,700 sales representatives has a strong reach in the Chinese pharmaceutical sector. The company therefore is best positioned to make the products even more available to patients in China and to leverage the future potential of the two brands. DKSH remains committed to China, a market where we have been present for more than 100 years with a niche strategy in our four Business Units.”
Dr. Kong Lam, Chairman and Chief Executive Officer of CMS, stated: “This transaction is an important step for CMS to expand our offering with two best-in-class, Western pharmaceutical brands. Combizym and Hirudoid fit perfectly with our existing brands and we are committed to investing and growing the business and enhancing its already well-established reputation and performance.”
In 2014, the combined annual net sales of both brands were CHF 16 million. The agreed purchase price is CHF 76.6 million. Closing of the transaction is planned for the first half of 2015 and is subject to customary closing conditions.
For further information please contact:
DKSH Holding Ltd. | |
Till Leisner Head, Group Investor & Media Relations Phone +41 44 386 7315 till.leisner@dksh.com | Dominique Nadelhofer Manager, Group Media Relations Phone +41 44 386 7228 dominique.nadelhofer@dksh.com |
About DKSH Group
DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets.
Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 750 business locations in 35 countries – 720 of them in Asia – and 27,600 specialized staff, DKSH generated net sales of CHF 9.8 billion in 2014.
The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials and Technology.
In 2015, DKSH celebrates its 150th anniversary. With strong Swiss heritage, the company has a long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.