Leadman Acquires Simcere Sanroad for 1.39 Billion Yuan to Build Dual-Business Structure in IVD and Biologics
Leadman Biotech has announced that its board has approved the acquisition of a 61.5% stake in Simcere Sanroad for approximately 1.393 billion yuan in cash. The move accelerates the company’s dual-business strategy, combining in vitro diagnostics and biologics, laying a solid foundation for building a second growth curve and deepening its presence in the tuberculosis diagnostics and treatment value chain. Based on a valuation date of December 31, 2025, Simcere Sanroad’s equity value was estimated at approximately 2.276 billion yuan using the income approach, representing a valuation increase of 139.52 percent. The transaction includes a performance commitment period extending through 2028, with cumulative net profit commitments totaling approximately 512 million yuan from 2026 to 2028.
Simcere Sanroad has long been focused on tuberculosis prevention and treatment, building a complete product portfolio covering screening, diagnosis, confirmation, drug resistance testing, preventive therapeutics, and therapeutic drugs under its “integrated tuberculosis diagnostics and treatment” strategy. Its core proprietary product, purified protein derivative of tuberculin, relies on a highly rare Mycobacterium tuberculosis strain that underpins the company’s leading position in the domestic tuberculosis testing market. The company’s products are distributed through more than 10,000 hospitals and CDC terminals nationwide, creating a significant competitive moat. The acquisition aligns with Healthy China strategy and infectious disease prevention policies, representing a strategic decision by Leadman Biotech as a state-controlled listed company based on its understanding of industry trends.
In terms of product and channel synergies, Leadman Biotech has long been deeply engaged in hospital clinical laboratory channels, which complement Simcere Sanroad’s nationwide network covering CDC and clinical departments, including tuberculosis, respiratory, and infectious disease specialties. This will effectively enhance Leadman’s reach in public health and specialty settings, while the company’s hospital laboratory resources will accelerate the clinical adoption of Simcere Sanroad’s IGRA and future molecular drug resistance products.
On the technology front, Simcere Sanroad’s existing IGRA products use enzyme-linked immunoassay technology, while Leadman Biotech’s mature chemiluminescence technology platform could accelerate development of chemiluminescence-based IGRA products, further enriching the tuberculosis screening and diagnostic product portfolio. Looking ahead, Leadman Biotech aims to maintain its core IVD business while entering the specialty tuberculosis diagnostics segment through this transaction, creating a new “routine diagnostics plus specialty diagnostics” structure and delivering long-term value.
