Beijing Pharma to acquire majority stake in Purenhong Pharma
Shanghai. June 20. INTERFAX-CHINA - Beijing Pharmaceutical Co. Ltd. (Beijing Pharma) has agreed to acquire an aggregate 55.65 percent stake in domestic drug distributor Beijing Purenhong Pharmaceutical Co. Ltd. (Purenhong).
Beijing SL Pharmaceutical Co. Ltd. (SL Pharma), previously Purenhong's largest shareholder, announced June 17 that it plans to sell a 25 percent stake in the distributor to Beijing Pharma for RMB 249.55 million ($38.53 million), diluting its share to 20 percent.
Meanwhile, Beijing Pharma has entered an agreement with four other individual shareholders to acquire a further 30.65 percent stake, according to SL Pharma's announcement.
Beijing Pharma is a wholly-owned subsidiary of China Resources Medication Group Co. Ltd., China's second largest drug distributor and itself a subsidiary of state-owned conglomerate China Resources (Holdings) Co. Ltd.
Beijing-based Purenhong supplies more than 1,000 drugs, 10 of which are exclusive, to more than 120 hospitals in the municipality, including all Grade II and Grade III hospitals. It clocked operating revenue of RMB 1.50 billion ($231.60 million) and net profit of RMB 43.86 million ($6.77 million) in 2010.
Biological drug maker SL Pharma aims to form a strategic partnership with Beijing Pharma and strengthen its distribution network across China through the deal, the announcement said. The firm's shares on the Shenzhen Stock Exchange closed up 0.31 percent Friday at RMB 35.78 ($5.53).
- MS