Honz Pharma enters north China with Tianhe Pharma acquisition
Shanghai. June 16. INTERFAX-CHINA - Hainan Honz Pharmaceutical Co. Ltd. (Honz Pharma), a leading pediatric drug maker, has acquired Hebei Tianhe Pharmaceutical Group Co. Ltd. (Tianhe Pharma) for RMB 21 million ($3.24 million) in a bid to expand its presence in northern China, Honz Pharma announced June 16.
Honz Pharma plans to boost Tianhe Pharma's registered capital to RMB 80 million ($12.34 million) and build the company into its primary production platform in central and north China, the Hainan Province-based firm said yesterday. The deal is also intended to enlarge Honz Pharma's portfolio of pediatric drugs.
Honz Pharma has two production facilities located in its hometown of Haikou City in south China's Hainan Province, Lu Fangmei, an investor relations representative with the firm told Interfax June 16.
Honz Pharma previously stated that it would bid as high as RMB 30 million ($4.63 million) for Tianhe Pharma.
Based in Handan City in northern Hebei Province, Tianhe Pharma holds 10 production approvals for pediatric medicines, eye drops and other over-the-counter (OTC) drugs. Established in 2005, the company is owned by three private investors. Its assets were worth RMB 29.30 ($4.52 million) as of March 31 this year.
Honz Pharma is listed on the Shenzhen Growth Enterprise Market (GEM). It took a hit in May when the State Food and Drug Administration (SFDA) banned the use of the fever drug nimesulide on children under 12 years old amid safety concerns. The drug contributed about 72 percent of the company's sales revenue in 2010, according to its annual report.
- MS