Yongtai Tech to acquire 26 pct stake in Fuxiang Pharma for $8.2 mln
Shanghai. December 1. INTERFAX-CHINA - Zhejiang Yongtai Technology Co. Ltd. announced Nov. 30 it plans to acquire 26 percent stake in Jingdezhen Fuxiang Pharmaceutical Co. Ltd. for approximately RMB 54.60 million ($8.19 million).
According to the announcement, Yongtai Tech intends to enter the active pharmaceutical ingredient (API) sector through the acquisition, and aims in particular to gain experience in production and quality control.
Yongtai Tech's pharmaceutical business currently concentrates on the production of intermediates for antifungal and anti-infective drugs.
Based in Jiangxi Province's Jingdezhen City, Fuxiang Pharma mainly engages in the production of beta-Lactam antibiotic APIs, including sulbactam acid, tazobactam and sultamicillin tosilate.
Fuxiang Pharma clocked operating revenue of RMB 162.40 million ($24.36 million) and net profit of RMB 11.95 million ($1.79 million) in 2009. Yongtai Tech expects Fuxiang Pharma's net profit to reach RMB 25 million ($3.75 million) in 2010 and to continue fast growth in 2011.