Boehringer Ingelheim Exits Shanghai CDMO Business in $3M Deal with Raas

Boehringer Ingelheim is exiting its biologics contract manufacturing operations in China through a deal with Shanghai-based Raas Blood Products, which plans to acquire the local unit and use its established manufacturing infrastructure to support the development and production of its pipeline medicines.

Raas disclosed in a financial filing that it is offering up to 20 million Chinese yuan (approximately $3 million) to acquire a 100% stake in Boehringer Ingelheim Biopharmaceuticals in China. The company has a registered capital of $66 million, representing the investment contributed by its shareholders.

Established in Shanghai in 2014, Boehringer Ingelheim’s Chinese biopharmaceuticals business was created to provide a local manufacturing base for biologic medicines. The unit primarily operates as a contract development and manufacturing organization (CDMO), supporting both international and Chinese pharmaceutical companies.

Its services cover clinical and commercial manufacturing, as well as chemistry, manufacturing and controls (CMC) support, analytical development and validation, and regulatory registration activities.

Boehringer Ingelheim had not immediately commented on the transaction. According to Raas’ filing, the German pharmaceutical company plans to focus on other operations in China as part of a broader strategic adjustment to its business in the country.

The Shanghai unit operates a contract manufacturing facility with commercial production capacity of 6,000 liters. It also holds a drug manufacturing license issued by the Shanghai Municipal Drug Administration and has established industrialization capabilities and an experienced technical team.

Raas described the business as a relatively rare large-molecule biopharmaceutical manufacturing platform in China. The company also pointed to the unit’s financial performance as a factor behind the acquisition opportunity, noting that the business recorded losses in 2024, 2025 and the first quarter of 2026.

According to Raas, the unit reported a net loss of 16.8 million yuan (approximately $2.5 million) in the first quarter of 2026 and a net loss of 259 million yuan ($38.5 million) for 2025. The business has faced increasing competition from domestic CDMO companies, including WuXi Biologics.

For Raas, the acquisition comes as the company looks to strengthen its position in innovative drug development and address gaps in its manufacturing capabilities. The company plans to leverage the acquired facility’s production capacity, quality control systems and other resources to support the development and commercialization of its lead candidate, SR604.

Raas said the additional manufacturing infrastructure will help ensure the timely and stable production and launch of SR604, while also providing capacity for other candidates in its pipeline.

SR604 is a monoclonal antibody being developed for hemophilia A and B. According to Raas, the candidate is the first in the world to target activated protein C as a treatment approach for hemophilia.

The company said preparations for a Phase 3 program for SR604 are progressing, while a mid-stage clinical study is being prepared to evaluate the candidate in treating bleeding episodes in patients with von Willebrand disease. Raas is also developing additional drug candidates focused primarily on coagulation and inflammatory diseases.

The transaction comes as Boehringer Ingelheim continues to report growth across its broader business. The company recently reported a 12% increase in revenue during the first half of 2026, driven in significant part by demand in the U.S. for Jardiance, its diabetes and heart failure treatment.

The acquisition will give Raas access to an established biologics manufacturing platform and additional production capacity as it advances SR604 and other pipeline programs, while allowing Boehringer Ingelheim to streamline its operations in China in line with its broader strategic priorities.