Fosun Pharma buys majority stake in Breas Medical
Fosun Pharma takes over control from American risk capital firm PBM Capital, after it paid 90 million dollars (over 800 million kronor) for an 80 per cent stake in Breas Medical.
“We believe there will be high demand for Breas products in China where we have big problems with air pollution, smoking and an ageing population,” said Richard Zhao, the Senior Vice President of Fosun Pharma’s Medical Device Department, to Swedish business daily Dagens Industri.
Damian deGoa, CEO and founder of Breas Medical, sees only benefits from the Chinese takeover.
“It feels like they have a long-term perspective and with their knowledge of the Chinese market together with their financial muscle, we have a fantastic opportunity to grow in China. I gladly draw parallels to how Volvo has developed under Geely,” he told Dagens Industri.
Iris Öhrn, Life Science Investment Manager at Business Region Göteborg, said in a comment:
“We look forward to more collaboration and hope that Fosun Pharma will continue to expand in the Nordics, with Gothenburg as its base.”
“China has always been an important trade partner for Gothenburg. Gothenburg and Shanghai are sister cities since 1986. I believe that both Fosun Pharma and Geely’s investments in Gothenburg will enable further collaboration between our regions. Today there are around 18,000 employees in Chinese owned companies in Sweden – over 13,000 of them work in Gothenburg.”
Fosun Pharma’s investment was concluded at a signing ceremony at Breas’ head office in Mölnlycke in mid-March, 2017. Present were executives of Fosun Pharma and PBM Capital, representatives of the City of Gothenburg and Business Region Göteborg as well as all Breas employees.
The representatives from Breas Medical, Fosun Pharma and PBM Capital also visited AstraZeneca BioVentureHub. There the new owners were welcomed to the region and given an introduction to its innovation ecosystem by organisations such as Medtech West, Sahlgrenska Science Park and the BioVentureHub. The programme was organised by Business Region Göteborg.
Breas Medical is a global company selling its products in more than 40 countries. It has around 150 employees and last year its turnover totalled about 450 million kronor (51 million dollars). Development and production is mostly carried out at the company’s facility in Mölnlycke, outside of Gothenburg.