The divestiture – which is expected to complete this year – will see Hong Kong Stock Exchange-listed Luye pay €245m ($274m) for Acino’s transdermal patch and implant businesses and it distribution and R&D capabilities.
Switzerland-based Acino said it will retain rights to sell certain transdermal patch products in its “strategic emerging markets,” citing the Middle East and Africa, the CIS region, and Latin America as examples.
The firm also said the 200 workers employed at its manufacturing facility in Miesbach were informed of the planned sale before the deal was announced.
A spokesman told us "Luye will be taking on all our existing contracts" adding that "we will work together with Luye and prepare a handover to ensure a smooth transition."
He added that: "After the closing a transitional service agreement will be in place to make ensure the continuity of the business."
Luye said the Acino portfolio is focused on “sophisticated and higher margin specialty patch categories such as CNS, pain and hormone spaces,” citing rivastigmine, buprenorphine and fentanyl patch products the firm makes as examples.
The Shanghai-based firm also cited Acino’s presence in Europe as a motivation for the deal.
Takeda deal
Acino – a private company since 2013 – generated total revenue of CHF15.7m ($16.2m) at the end of that year, which was up just over CHF2m on 2013. The firm did not disclose how much of this was generated by its patch delivery technology business.
News of the proposed sale comes just weeks after Acino said it will buy a drug packaging site in Polva, Estonia from Japanese drug manufacturer Takeda
The deal – terms of which were not disclosed – will see the facility continue to supply Takeda products.