Core Viewpoint - BMS is selling its 60% stake in Shanghai BMS Pharmaceutical Co., Ltd. to an affiliate of Hillhouse Capital, with the transaction expected to be completed by early 2026, as part of its long-term strategic resource allocation in response to evolving business needs [1][2]. Group 1: Company Strategy - The sale of the stake in SASS reflects BMS's commitment to its production strategy, aiming to balance internal resources through strong external partnerships and deepen regional strategic layouts [1]. - BMS maintains a strong commitment to the Chinese market and plans to continue investing under its "China 2030 Strategy," focusing on accelerating the introduction of innovative therapies and improving drug accessibility for patients [1][4]. Group 2: Industry Context - Shanghai BMS, established in 1982, is the first Sino-American joint venture pharmaceutical company in China, with BMS holding 60% of the shares, Shanghai Pharmaceutical Group 30%, and China National Pharmaceutical Group 10% [2]. - The trend of joint venture pharmaceutical companies exiting the Chinese market is evident, with examples including Johnson & Johnson's rebranding of Xi'an Janssen and Hengrui's acquisition of the remaining shares of MSD [2][3]. - The exit of these joint ventures marks the end of an era, as they previously provided many classic drugs to the Chinese market, but the current market is now filled with more cost-effective generic alternatives [3]. Group 3: Future Outlook - The departure of joint venture companies does not indicate a complete exit of foreign pharmaceutical companies from the Chinese market; instead, many are refocusing on innovative drug businesses and introducing more innovative products in China [4]. - Concerns about the potential withdrawal of classic drugs from the market are mitigated by the expectation that these products will transition to new companies, which may revitalize their market presence [4].