Shionogi said on Monday that it would tie up with Ping An Insurance Group of China, selling a 2.05% voting stake for JPY 33.53 billion, as reported in Fidelity.
The Japanese company said it will form a joint venture with the Chinese group's unit, Ping An Life Insurance, with the aim of discovering and distributing new drugs and developing generic ones as it looks to expand in China.
"To attain our growth strategy beyond 2020, we must realize the expansion of our business in China, which is expected to show the greatest pharmaceutical market growth in the world over the next 10 years," Shionogi stated.
Shionogi focuses on infectious diseases, but a looming patent cliff for its HIV treatments will create an earnings gap that will be hard to completely offset, the news source said.
Meanwhile, Ping An Insurance Group, said in February it expected the coronavirus outbreak to affect its business in the first half.