Sihuan Pharma Acquires TCM Drug Maker For US$120 Million

Chinese cardio-cerebral drug company Sihuan Pharmaceutical has acquired TCM-maker Vinise Pharmaceutical for US$120 million.

AsianScientist (Jun. 26, 2011) – Sihuan Pharmaceutical, a cardio-cerebral vascular drug pharmaceutical company in China, has acquired two Chinese drug companies, Vinise Pharmaceutical Limited and Hainan Litzman Pharmaceutical Limited.

Sihuan Pharmaceutical paid US$120 million for a 100 percent equity interest in Congio Enterprises Limited. Congio holds 100 percent of the equity interests in Vinise Pharma and Hainan Litzman Pharma.

The acquisition will be funded partly by the proceeds of Sihuan Pharmaceutical’s initial public offering and partly from internal funds. This move is expected to enable Sihuan Pharmaceutical to tap into the vast traditional Chinese medicine (TCM) market for cardio-cerebral vascular drugs.

Vinise Pharmaceutical’s main products include Breviscapine Sodium Chloride Injection, Breviscapine Glucose Injection, Salvia Miltiorrhizae, Liguspyragine Hydrochloride and Glucose Injection, Salivae Miltiorrhizae and Ligustrazine Hydrochloride Injection, Kai Xin Di An, Mei Tuo Wei Er, Yi Shu Li Da, Te Fu Kang Ling, and Bai Shu Yi. Production of the new drugs is expected to commence immediately upon the completion of the acquisition.

Furthermore, Vinise Pharmaceutical’s production line for large-volume injection will enable Sihuan Pharmaceutical to introduce and develop new large-volume injection products in the future.

Dr. Che Fengsheng, Chairman and CEO of Sihuan Pharma, said in a statement:

“In 2010, TCM accounts for more than 50 percent of the cardio-cerebral vascular drugs market where seven out of the top twenty such drugs are TCM. The acquisition of Vinise Pharmaceutical is part of our strategy to become an active participant in the TCM market.”

Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is the largest cardio-cerebral vascular drug franchise in China by market share.

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Source: Sihuan Pharmaceutical.
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