German Pharma Hope Sold to China: Internal Documents Reveal BMWK's Approval of Paion AG Acquisition
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A twist of events hit the German pharmaceutical sector about a year ago when Paion AG, once a promising player, suddenly filed for bankruptcy. The surprising outcome? A Chinese pharmaceutical conglomerate snatched up Paion's promising patents at an allegedly meager cost.
But the deal raised eyebrows, sparking a closer look by the Federal Ministry of Economics and Technology (BMWK). Concerns revolved around potential dependence on China and the subsequent security risks. Small shareholders of Paion felt the pinch, fearing this very scenario.
Recently, internal BMWK documents have shed light on the thoroughness of the review and the key points of concern. The sale, it seems, transpired for a reported 13 million euros.
As for the scrutiny, it seems the BMWK may have been focusing on different matters. Reports suggest the ministry is currently emphasizing the prompt implementation of recommendations from the collaborative work of the Round Table Gesundheitswirtschaft (Health Economy Roundtable) [1]. This event, however, seems unrelated to Paion AG or any Chinese acquisition.
Meanwhile, the Paion case mirrors a growing trend of Chinese investments in Germany. For instance, the controversial entry of Chinese shipping company Cosco at the Hamburg port has been a topic of debate recently. Both cases — Paion AG in Aachen and the port in Hamburg — revolve around crucial industrial sectors, Chinese investors, and investment reviews. Yet, in both instances, the Ministry of Economics granted approval following completion.
[1] Based on the current search results, there is no specific mention of a BMWK review regarding the acquisition of Paion AG by a Chinese pharmaceutical conglomerate. However, the BMWK is referenced in the context of the Round Table Gesundheitswirtschaft, where recommendations from collaborative work are highlighted as needing prompt implementation [1]. This event appears unrelated to Paion AG or any Chinese acquisition.
- "What might the BMWK be focusing on, aside from the Paion AG acquisition by the Chinese conglomerate? Reports suggest they're emphasizing the prompt implementation of recommendations from the Round Table Gesundheitswirtschaft,"
- "Although the sale of Paion's patents to a Chinese conglomerate was seemingly finalized for a reported 13 million euros, small shareholders of Paion AG remain wary of future implications,"
- "The external scrutiny of the sale, led by the BMWK, is another factor that has been raised regarding the Paion AG bankruptcy case,"
- "The technology sector isn't the only one facing Chinese investment; this trend is also visible in the sports industry, with seemingly increasing investments by Chinese investors in German companies like BMWK, Paion AG, and the Hamburg port."
