(Bloomberg) — Biopharmaceutical firm Hutchmed China Ltd., backed by billionaire Li Ka-shing, has agreed to sell stakes in a health unit for about $608 million as the group seeks to generate capital and focus on its core businesses.

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Hutchmed, whose biggest shareholder is Li’s flagship conglomerate CK Hutchison Holdings Ltd., will sell a combined 45% interest in Shanghai Hutchison Pharmaceuticals Ltd. to Chinese companies GP Health Service Capital Co. and Shanghai Pharmaceuticals Holding Co., according to stock exchange filings Wednesday.

Shanghai Pharma, which already owns 50% of shares in the target company, will hold 60% interest in the target company after the transaction, according to the filings. Hutchmed is required to pay compensation to the buyers if the target company doesn’t meet certain profit thresholds.

Hutchmed expects to record a gain of about $477 million before tax from the deal, which will be reinvested into developing its core businesses including targeted therapies for treating cancer and immunological diseases, the company said in its statement.

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