Novartis agreed to acquire an 85-percent stake in the Chinese vaccine company Zhejiang Tianyuan Bio-Pharmaceutical for $125 million in cash, the Swiss drugmaker said Wednesday.

The move is part of Novartis' “strategic initiative to build a vaccines industry leader” in China and “expand the group's limited presence in this fast-growing market,” which CEO Daniel Vasella remarked could become one of the company’s three biggest regions by 2014.

In a statement, Novartis noted that Tianyuan, which had net sales of $25 million in 2008, markets a range of vaccines in China and is developing further products focused on viral and bacterial diseases. The agreement follows Novartis’ earlier announcement that it plans to invest $1 billion to increase R&D activities in China.

Reference Articles

Novartis to buy majority in China's Tianyuan $125M - (Forbes)

Novartis buys China vaccine stake for $125 mln - (Forexyard)

Novartis to buy 85% of Chinese vaccines producer - (MarketWatch)

Novartis to expand its human vaccines presence in China through proposed acquisition of a majority stake in Zhejiang Tianyuan - (Novartis)

Novartis spends $125M to buy Chinese vaccines maker (free preview) - (The Wall Street Journal)