03:48 AM EST, 01/02/2025 (MT Newswires) -- HUTCHMED ( HCM ) said Wednesday it has agreed to sell a 45% equity interest in Shanghai Hutchison Pharmaceuticals to GP Health Service Capital and Shanghai Pharmaceuticals in two transactions totaling about $608 million in cash.

Shanghai Hutchison, which manufactures, sells and distributes prescription medicines for cardiovascular diseases, is HUTCHMED's ( HCM ) 50-50 joint venture with Shanghai Pharmaceuticals.

Under the terms, GP Health Service has agreed to acquire a 35% equity interest in Shanghai Hutchison for about $473 million in cash, while Shanghai Pharmaceuticals will buy a 10% stake for about $135 million in cash.

The transactions are set to close by the end of Q1.

Upon completion, HUTCHMED ( HCM ) will retain a 5% equity interest in Shanghai Hutchison. Meanwhile, Shanghai Pharmaceuticals will hold a 60% equity interest in the joint venture.

The sale will allow HUTCHMED ( HCM ) to focus on its core business of developing and commercializing therapies for cancers and immunological diseases, the company said, adding that it plans to use proceeds of about $477 million to further enhance its pipeline.