Shionogi Acquires Pingan Shares in AI Joint Ventures

（the article has been updated to make it concise and cohesive)

In 2020, Japanese pharmaceutical company Shionogi and Ping An, China’s major insurance company, formed two joint ventures: Ping An Shionogi and Ping An Shionogi HK. These JVs were structured with Shionogi holding 51% and Ping An 49%. The primary goal of these ventures was to leverage artificial intelligence (AI) to accelerate drug development, utilizing Ping An’s extensive database of medical and electronic health records.

However, Shionogi has now decided to acquire Ping An’s shares, effectively making the ventures its subsidiaries. Financial terms of the deal have not been disclosed, and the motivations behind the dissolution of the joint ventures remain unclear.

This move reflects a broader trend seen in other joint ventures between foreign drug makers and Chinese domestic companies that have not yielded the anticipated results. Notable examples include partnerships like Pfizer/Hisun and Merck/Simcere.

In addition to its ventures with Shionogi, Ping An has also established a joint venture with Tsumura, Japan’s largest producer of traditional Chinese medicine, where it holds the largest equity stake.