# Genus accelerates China joint venture with BCA to advance PRRS resistant pig

- Link: https://www.directorstalkinterviews.com/genus-accelerates-china-joint-venture-with-bca-to-advance-prrs-resistant-pig/4121214766
- Published: 2025-09-04T07:32:31+01:00
- Author: Amilia Stone

**Genus plc** (LON:GNS), a leading global animal genetics company, has announced
a positive update in relation to its existing strategic porcine collaboration in
China with Beijing Capital Agribusiness Co. Ltd, the Group’s domestic state-backed
partner.

**Key highlights:**

·    Strengthening PIC China’s local positioning by accelerating porcine joint venture
formation in China, 51% owned by BCA and 49% owned by Genus

·    Provides the best possible route to achieving PRP commercialisation in China

·    Accelerated value crystallisation with retained future economic rights; Genus
to receive:

o  A gross cash payment of US$160m (estimated US$140m, net of withholding tax and
transaction costs, and subject to any further working capital and net debt adjustments)

o  US$7.5m accelerated milestone, upon receipt of approval for the formation of 
the joint venture from the competent Chinese state-owned assets supervision and 
administration authority, in lieu of remaining milestone payments under the original
agreements

o  Intellectual property royalties from the joint venture on PRP sales in China 
that are consistent with the original agreements

o  Dividends from the joint venture based on Genus’s 49% ownership, consistent with
the original agreements

·    Transaction expected to complete in 2026, subject to Chinese regulatory approvals
for the formation of the joint venture

**Transaction details**

The original agreements, signed in May 2019^(1), allowed for Genus and BCA to jointly
research, develop, register and market the PRRS^(2) Resistant Pig (“PRP”) in China.
Under the terms of the original agreements, BCA would pay Genus between US$120m-
$160m to establish a Chinese joint venture 51% owned by BCA and 49% owned by Genus
following the achievement of PRP regulatory approval and commercialisation in China.
The joint venture would include PIC China and BCA’s Future Bio-Tech business (“FBT”).

Given the positive progress made to date, the parties have entered into updated 
agreements (“updated agreements”) to accelerate the formation of this Chinese joint
venture. This cements Genus’s and BCA’s commitment to strengthening PIC China’s 
local business and achieving PRP commercialisation in China, as a domestic partner
collaboration provides the best possible route to obtaining necessary MARA^(3) approvals.

As noted in the key highlights above, the updated agreements accelerate value crystallisation
for Genus whilst retaining future economic rights that are consistent with the original
agreements.

The transaction will proceed in two stages. In the first stage, PIC will receive
the accelerated milestone payment of US$7.5m and the gross cash payment of US$160m,
and BCA will acquire 51% of PIC China through a share purchase and additional subscription
for new shares. The first stage is subject to Chinese regulatory approvals and is
expected to complete in FY26. In the second stage, PIC China will acquire 100% of
FBT, the BCA controlled entity pursuing MARA^(3) approval for PRP under license 
from Genus, with the consideration and costs necessary to achieve PRP commercialisation
in China fully funded by BCA from their share subscription. The second stage is 
expected to complete in 2026 and is not subject to additional regulatory approval.

Following completion of the transaction, PIC China will be deconsolidated from Genus’s
financial results and Genus’s 49% interest in the joint venture will be equity accounted.
Proceeds from the transaction are currently expected to be used for balance sheet
deleveraging and potential additional shareholder returns, in line with the Genus’s
capital allocation framework.

> **Commenting on the transaction, Jorgen Kokke, CEO of Genus, said:**
> “Genus has enjoyed a strong and successful partnership with BCA for a number of
> years. The formalisation of our relationship through accelerating the joint venture
> is a very positive step towards PIC China achieving regulatory approval for the
> PRRS resistant pig.”

> **Matt Culbertson, COO of Genus PIC, said:**
> “We are excited about the market potential of the Chinese porcine industry.  Combining
> our industry leading PIC China team with BCA’s strategic progress in China on 
> the PRP program is expected to enable greater delivery of value to our Chinese
> customers and an additional opportunity for future business growth.”

> **Liu Jiantong, CEO of Beijing Capital Agribusiness Co., Ltd., said:**
> “China produces and consumes approximately 50% of pork globally. Pork is deeply
> ingrained in Chinese culinary culture. PIC Genetics and the PRRS Resistant technologies
> will greatly improve the efficiency of Chinese pork production to provide healthy,
> affordable and sustainable pork for Chinese people. We are proud to partner with
> Genus to grow the PIC China business and to contribute to our country.” 

**Analyst Presentation**

Management is hosting an in-person presentation and Q&A session for sell-side analysts
today at 09:00 at Peel Hunt’s London offices (100 Liverpool Street, London EC2M 
2AT). Those unable to attend in person can also join remotely; please contact Toto
Berger at Burson Buchanan for details: genus@buchanan.uk.com.

_This announcement contains inside information for the purposes of article 7 of 
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in 
accordance with the Company’s obligations under article 17 of MAR.  The person responsible
for making this announcement on behalf of the Group is Lucie Grant (General Counsel
and Company Secretary)._

_InterChina Partners acted as Sole Financial Adviser and Herbert Smith Freehills
Kramer acted as Legal Counsel to Genus on this transaction._

_As at 30 June 2025, the total book value of net assets attributable to PIC China
was approximately £32m. In the twelve months to 30 June 2025, revenue of £41.3m 
and adjusted operating profit including joint ventures of £8.4m were attributable
to PIC China._

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