Sihuan Pharma to acquire 80 pct stake in Xiangtong Pharma
Shanghai. January 21. INTERFAX-CHINA - Jilin Sihuan Pharmaceutical Co. Ltd. (Sihuan Pharam), a wholly-owned subsidiary of Hainan Province-based Sihuan Pharmaceutical Holdings Group Ltd., has agreed to acquire an 80 percent stake in Changchun Xiangtong Pharmaceutical Co. Ltd. for RMB 140.6 million ($21.36 million), Sihuan Pharma announced Jan. 20.
Sihuan Pharma aims to expand it product portfolio through the acquisition. It will also gain access to GM1 (monosialotetrahexosylganglioside) sodium, a cardiovascular disease drug, from Xiangtong Pharma following the deal, the announcement said.
Based in Jilin Province's Changchun City, Xiangtong Pharma mainly produces drugs for cerebrovascular and digestive diseases, along with anti-inflammatories. GM1 sodium active pharmaceutical ingredient (API) and injections are its flagship products. It recorded sales revenue of RMB 52 million ($7.90 million) and net profit of RMB 12 million ($1.82 million) in 2009.
Sihuan Pharma is the largest manufacturer of cardiocerebral vascular drugs in China.