Gloria Pharma to acquire 51 pct stake in competitor
Shanghai. June 29. INTERFAX-CHINA - Shenzhen Stock Exchange-listed Harbin Gloria Pharmaceutical Co. Ltd. (Gloria Pharma) announced plans to acquire a 51 percent stake in rival pharma firm Heilongjiang Dilong Pharmaceutical Co. Ltd. (Dilong Pharma) in a bid to increase its share of the domestic orthopedic drug market, Gloria Pharma announced June 29.
Based in Heilongjiang Province's Anda City, Dilong Pharma is controlled by nine individual investors, seven of which have agreed to sell equity to Gloria Pharma, according to the announcement. Pricing for the deal has yet to be determined, it noted.
Gloria Pharma's flagship product, cervus and cucumis polypeptide injection, accounted for 40 percent of the company's sales revenue in 2009. Dilong Pharma and Heilongjiang Jiangshi Pharmaceutical Co. Ltd. are the only other domestic pharma firms approved to produce the injection.
Dilong Pharma earned net profit of RMB 39.79 million ($6.15 million) and sales revenue of RMB 88.45 million ($13.67 million) in 2010, the announcement added. At the end of last year, the company had net assets of RMB 96.78 million ($14.96 million).
-MS
