AsianScientist (Dec. 16, 2011) – Chinese pharmaceutical company China Sky One Medical, Inc. announced this week that its wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company (TDR), has signed an agreement to jointly set up a new company, Harbin Tian Xin Biological Engineering Ltd.
Harbin Tian Xin Biological Engineering Ltd. is being organized to perform the storage of umbilical cord stem cells. It is also to perform the clinical applications of bone marrow stem cells, intercord mesenchymal stem cells, and other human stem cells.
“As we have been involved in this area of research for the past several years, we are optimistic as to the potential of the stem cell storage and application sector. We are pleased to attract outside investors to this new venture to strengthen our capability in terms of technology and capital,” said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical.
“We expect that Harbin Tian Xin Biological Engineering Ltd. will be formally put into operation in the first quarter of 2012 and new products and services might be introduced into the market as early as year-end 2012,” he added.
On December 12, 2011, TDR entered into an Agreement with three parties, the No. Four Hospital Associated with Harbin Medical Science University, Harbin Zheng Yuan Construction Group, and Mr. Xiao-wei Zhang, pursuant to which they will jointly set up the new company for a total capital commitment of RMB 230.0 million (US$36.3 million).
TDR shall invest RMB 90.0 million (US$14.2 million) for an ownership stake of 39 percent. The four parties agreed in the Agreement that 65 percent of the committed capital is payable within 15 days upon execution of the Agreement, and the remaining 35 percent is payable within six months after initial payment is made. In addition, TDR shall have the right to appoint Harbin Tian Xin’s Chairman and General Manager.
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Source: China Sky One Medical, Inc.
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