Bei Jing Shang Bao·2026-02-05 16:37Core Viewpoint - The restructuring of China-U.S. Shanghai Bristol-Myers Squibb Co., a joint venture with over 40 years of history, is underway as Shanghai Pharmaceuticals plans to sell its 30% stake, marking a significant shift in ownership amid declining performance [1][6]. Group 1: Share Transfer Details - Shanghai Pharmaceuticals intends to publicly auction its 30% stake in China-U.S. Bristol-Myers Squibb with a minimum price of RMB 1.023 billion, following the sale of a 60% stake by Bristol-Myers Squibb to Hillhouse Capital [3][4]. - After the transfer, Shanghai Pharmaceuticals will no longer hold any shares in China-U.S. Bristol-Myers Squibb, aiming to optimize its investment structure and maximize asset value [3][4]. Group 2: Financial Performance - China-U.S. Bristol-Myers Squibb's revenue has plummeted over 60% from a peak of RMB 4.724 billion in 2016 to an estimated RMB 1.795 billion in 2024, with a net profit of only RMB 248 million [6][7]. - The company reported revenue of RMB 1.096 billion and a net profit of RMB 87.12 million for the first three quarters of 2025, indicating ongoing financial struggles [6]. Group 3: Market Dynamics and Strategic Choices - The decline in performance is attributed to the expiration of patents for key original drugs and the inability to secure competitive new drug pipelines from foreign partners, leading to a lack of growth drivers [7]. - The decision by Shanghai Pharmaceuticals to divest is seen as a rational choice to recover over RMB 1 billion in capital, aligning with the need to focus on high-growth areas and optimize resource allocation [7][8]. Group 4: Industry Trends - China-U.S. Bristol-Myers Squibb is not the only joint venture undergoing restructuring; other early foreign-invested pharmaceutical companies like Xi'an Janssen and China-SK have also made similar adjustments [8][9]. - The exit of these joint ventures reflects a broader transformation in the Chinese pharmaceutical landscape, driven by policy changes, strategic refocusing by multinational companies, and a shift in market competition dynamics [10].