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BioNTech vaccine agent, Fosun Pharma, seeks more global sales through M&A opportunities, push into new markets

  • Company aims to raise offshore sales to 40 per cent of group revenue over five years, from about 27 per cent in 2020
  • Company intends to launch three to four biosimilars and innovative drugs this year, and more in 2022 as additional candidates pass through R&D phase

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Fosun Pharma is a key unit within mainland conglomerate Fosun International’s health division: Photo: Handout
Martin Choi
Shanghai Fosun Pharmaceutical (Group), controlled by conglomerate Fosun International, hopes to expand its international footprint through mergers and acquisitions (M&As) and sales of its innovative drugs in more overseas markets.
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The Hong Kong and Shanghai-listed group, which holds the distribution rights for BioNTech’s Covid-19 vaccine in Hong Kong and Macau, aims to increase its offshore sales to 40 per cent of group revenue over the next five years, chairman and chief executive officer Wu Yifang said. They accounted for about 27 per cent in 2020 and 23 per cent in 2019.

“For Fosun Pharma’s international business, we will pay close attention to new innovative platforms and technologies around the world,” Wu said in an interview. The firm will also look out for potential M&As and opportunities to expand its strategic layout, he added.

Shanghai Fosun Pharmaceutical wants to expand its global presence via M&As and sales of products in more offshore markets, CEO Wu Yifang says. Photo: Handout.
Shanghai Fosun Pharmaceutical wants to expand its global presence via M&As and sales of products in more offshore markets, CEO Wu Yifang says. Photo: Handout.
The outreach is seen as a crucial support for its beleaguered parent Fosun International, whose global diversification strategy into the hospitality and events industries in recent years came unstuck as the Covid-19 pandemic slammed travel and tourism worldwide.

The conglomerate’s health business, led by its 39.4 per cent stake in Fosun Pharma, was the only division to generate more gross profits in 2020, according to its latest filing. The wealth and intelligent manufacturing divisions made less money while the happiness unit fell into the red.

On its own, Fosun Pharma generated 8.2 billion yuan (US$1.25 billion) of sales outside mainland China last year, 27.2 per cent of total revenue, its latest report showed, versus 6.6 billion yuan in 2019. Growth targets include the US, Africa, Europe and India, said Wu.

Fosun Pharma holds the distribution rights in Hong Kong and Macau for BioNTech’s Covid-19 vaccine. Photo: EPA-EFE
Fosun Pharma holds the distribution rights in Hong Kong and Macau for BioNTech’s Covid-19 vaccine. Photo: EPA-EFE

Much of its global push will be backed by research and development (R&D) on new innovative drugs. Novel drugs currently in the pipeline could reach the markets as early as 2023, including Orin1001 oral tablets for the treatment of solid tumours and breast cancer.

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