China’s Ping An Insurance and Japanese pharmaceutical company Shionogi & Co have set up joint ventures in Shanghai and Hong Kong with total investment of around US$466 million to supply new drugs to customers in the Mainland and for research and development.
Shionogi holds a 51% stake in the two joint ventures with the Chinese insurance giant holding the other 49%.
Their combined investment in the Shanghai firm, Ping An-Shionogi Co, is 2.94 billion RMB ($420 million), with 1.5 billion RMB from the Japanese company and 1.44 billion RMB from the insurer, Ping An says in a statement on July 27.
Their investment in the Hong Kong firm, Ping An-Shionogi (Hong Kong), is HK$360 million ($46.15 million), with HK$184 million from Shionogi and HK$176 million from Ping An.
According to the statement, the two joint venture firms will set up a research and development platform to “create innovative medicines and healthcare services”, and supply new drugs to customers in China through Ping An Health Cloud, the insurer’s healthcare unit.
“By fusing Ping An’s strengths with Shionogi’s strengths as a drug discovery-oriented pharmaceutical company in this joint venture, we will work together to provide total healthcare solutions for the benefit of patients,” John Keller, senior vice president of Shionogi’s global business division, says in the statement.
Ping An had 8.66 trillion RMB of total assets as of March 2020.