Chinese insurance company, Ping An and Shionogi have signed agreements to launch joint ventures in Shanghai and Hong Kong. These new agreements are designed to enhance health and medical care services in China, in line with Ping An’s healthcare ecosystem strategy.
Ping An-Shionogi is registered in Shanghai, with a total investment of 2.94 billion (US$420.08 million). Shionogi will invest 1.5 billion yuan for a 51% equity, while Ping An Life Insurance Company of China, Ltd. will contribute 1.44 billion yuan for 49%.
In Hong Kong, Ping An-Shionogi (Hong Kong) Limited has been registered with a total investment of HKD360 million. This investment is comprised of a HKD176 million commitment from Ping An’s indirect subsidiary, Japan Healthcare Limited, for a 49% equity, and an investment of HKD184 million, with equity accounting for 51%, from Shionogi (Hong Kong).
The new focuses will become development centres for drugs that Shionogi is developing globally. With a focus on infectious disease and central nervous system disorders, Shionogi has amassed a wealth of knowledge about disease and strong drug-discovery capabilities.
Combining these competencies with Ping An’s big data and AI analytical technology, the joint ventures will establish a research and development platform to efficiently create high-value-added, innovative medicines and healthcare services and deliver customized solutions for customers
To enhance pharmaceutical manufacturing and quality control, Ping An will combine its AI technology with Shionogi’s manufacturing and quality control technology.
The joint ventures will use AI to monitor the manufacturing and analysis in real time, and to deploy an innovative pharmaceutical manufacturing and quality control system that offers high quality and low costs
The partnership will create development centres for drugs that Shionogi is already being developed globally and will focus on infectious disease and central nervous system disorders.
Combined with Ping An’s big data and artificial intelligence analytical technology, this will give them the opportunity to establish a research and development platform to efficiently create high-value-added, innovative medicines and healthcare services that will be able to deliver customised solutions for customers.
John Keller, Senior Executive Officer, Senior Vice President, Global Business Division Shionogi said, “We are excited to have completed the joint venture agreement and to now be prepared to make a full-scale start. Ping An Group has a world-leading platform and AI technology in the healthcare field, in addition to their strength in the insurance & financial field.”
He continued: “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, families, healthcare professionals and society as early as possible. We believe this alliance represents a very significant step toward our goal of creating new platforms to shape the future of healthcare.”
This alliance comes after the news that Ping An has faced challenges as profit falls by 43% in Q1 due to Covid-19.