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].

Group 1 - BMS is selling a 60% stake in its China joint venture, Shanghai BMS, to an affiliate of Hillhouse Capital, with the deal expected to close in early 2026 [1][4] - The divested assets include several products manufactured and sold exclusively in mainland China, such as Baraclude, Bufferin, and Theragran [1][4] - This divestiture is part of BMS's strategy to focus resources on core areas and optimize its business layout [1][4] Group 2 - Shanghai BMS was established in 1982 as the first Sino-American joint venture pharmaceutical company in China, predating other joint ventures like Xi'an Janssen and MSD [3] - The trend of foreign pharmaceutical companies exiting joint ventures in China is increasing, as the policy environment allows for wholly-owned operations [3][6] - Shanghai BMS has faced declining performance due to intensified competition and price reductions from centralized procurement, leading to a strategic decision to sell its business [4][6] Group 3 - In 2016, Shanghai BMS reported a record revenue of 4.72 billion yuan, but recent years have seen a decline in performance due to competition and pricing pressures [4] - The divestiture aligns with BMS's broader transformation plan, as the company reported a 2.48% year-over-year revenue decline in its latest financial report [4]

Core Viewpoint - Bristol Myers Squibb (BMS) has signed an agreement to sell 60% of its stake in Shanghai Bristol-Myers Squibb Pharmaceutical Co., Ltd. (SASS factory), while reaffirming its commitment to the Chinese market and continuing investments under its "China 2030 Strategy" [1][6]. Company Overview - Shanghai Bristol-Myers Squibb Pharmaceutical Co., Ltd. is currently owned 60% by BMS (China) Investment Co., Ltd., 30% by Shanghai Pharmaceuticals, and 10% by China National Pharmaceutical Group Asset Management Co., Ltd. [1] - The company produces several well-known pharmaceutical products, including antibiotics and antihypertensive medications [4][5]. Product Portfolio - The company manufactures various drugs, including: - Entecavir tablets (for hepatitis B treatment) - Cephalexin capsules (antibiotic) - Acetaminophen solutions (common cold and fever medication) - Fosinopril sodium tablets and Metformin hydrochloride tablets (antihypertensive medications) [2][3][6]. Market Strategy - BMS aims to accelerate the introduction of innovative therapies across various disease areas and enhance drug accessibility for Chinese patients [1][6]. - The company has shifted its focus towards a diversified biopharmaceutical strategy, concentrating on major disease areas such as oncology, hematology, and immunology [6]. Recent Developments - The potential buyer of the stake is rumored to be Hillhouse Capital, although BMS has not confirmed this information [3]. - Recent trends show a significant number of equity changes among foreign pharmaceutical companies in China, indicating a dynamic market environment [4][6]. Leadership Changes - Qian Jiang has taken over as the General Manager of BMS China, bringing experience from previous roles at Pfizer, Novartis, and Eli Lilly [7].