Watson Biologics Plans to Conduct a Private Placement and Change Its Ownership, Potentially Welcoming a Substantial Controlling Shareholder

Daily Economic News Reporter | Chen Xing Daily Economic News Editor | Zhang Yiming

Domestic vaccine company Watson Bio (SZ300142, stock price 12.28 yuan, market value 19.64 billion yuan) is approaching a critical turning point.

The company announced on the evening of March 16 that, due to plans for a private placement that could lead to a change in control, its stock will be suspended starting March 17. This company, which has been “ownerless” since its listing in 2010, may soon welcome a substantial controlling shareholder.

Watson Bio issued a notice on the evening of March 16 stating that the company is planning to issue A-shares to specific targets, which may result in a change of control.

Currently, all parties are discussing and negotiating specific plans, agreements, and related matters. Due to the uncertainty of these matters, and to protect investors’ interests and prevent abnormal fluctuations in the company’s stock price, the company has applied to the Shenzhen Stock Exchange for a trading suspension starting March 17 (Tuesday), expected to last no more than two trading days.

Since its listing in 2010, Watson Bio has long operated without a controlling shareholder or actual controller. This planned private placement and potential change of control could significantly alter the company’s ownership structure, which has remained stable for over a decade.

Notably, in July 2025, Watson Bio announced a strategic cooperation framework agreement with Yuxi State-owned Assets Supervision and Administration Commission (Yuxi SASAC), which would later take a stake in the company. The agreement mentioned that Yuxi SASAC would participate in the company’s capital operations through subscribing to new shares and jointly establishing a private equity fund, supporting the company in optimizing its ownership structure and strengthening its capital base. Industry insiders speculated at the time that Yuxi SASAC might take control of Watson Bio.

On February 11, 2026, Watson Bio announced the establishment of a 1 billion yuan biotech industry investment fund with China Investment Corporation (CIC) and Yuxi SASAC, among others. Watson Bio contributed 450 million yuan, and Yuxi SASAC contributed 250 million yuan, further strengthening their partnership.

Whether Yuxi SASAC will formally take control by subscribing to the private placement shares remains the biggest focus of this control change.

Behind this plan is the operational pressure Watson Bio has faced in recent years.

According to the company’s 2025 performance forecast, Watson Bio expects to achieve an operating revenue of 2.4 billion to 2.43 billion yuan for the year, continuing to decline from 2.821 billion yuan last year. Although net profit attributable to shareholders is expected to grow by 13% to 34%, reaching 160 million to 190 million yuan, non-recurring net profit is estimated to be 85 million to 99 million yuan, still down 9% to 22% year-on-year. The company explained that during the reporting period, the overall domestic and international vaccine markets remained in a downward cycle, with total revenue from vaccine products decreasing by about 8% compared to the previous year.

However, overseas performance has become a bright spot in Watson Bio’s results. The financial report shows that in 2025, revenue from overseas vaccine products continued to grow, with export vaccine revenue increasing by approximately 35% year-on-year.

Regarding stock performance, as of the close on March 16, Watson Bio traded at 12.28 yuan per share, with a total market value of about 19.64 billion yuan.

On one hand, market expectations of a new controlling shareholder are rising; on the other hand, the company’s fundamentals are under pressure due to declining performance. Whether this control change can bring new opportunities to this veteran vaccine company remains to be seen.

Cover image source: Daily Economic News Media Library