AsianScientist (Aug. 13, 2011) – Bohai Pharmaceuticals Group, Inc. announced this week the acquisition of Yantai Tianzheng Pharmaceutical Co., Ltd.
Like Bohai, Yantai Tianzheng produces, manufactures, and distributes modernized herbal medicines based on traditional Chinese medicine (TCM) in China.
Under the terms of a share purchase agreement, Bohai will acquire 100 percent of the outstanding shares of Yantai Tianzheng from its three shareholders for $35 million in an all cash transaction consisting of four installment payments over 18 months.
Mr. Jiangbo Chi, Yantai Tianzheng’s majority owner and CEO, will remain with Bohai to oversee the Yantai Tianzheng business.
Yantai Tianzheng achieved an audited revenue of US$37.9 million and a net income of US$6.3 million in its fiscal year which ended December 31, 2010.
“Yantai Tianzheng brings a very attractive lineup of SFDA approved, exclusive and/or protected TCM medicines to Bohai’s product line,” said Mr. Hongwei Qu, Chairman, President and CEO of Bohai Pharmaceuticals.
Yantai Tianzheng markets five primary products: Fangfengtongsheng Granule, Zhengxintai Capsule, Maitong Granule, Bezoar Antipyrotic Tablet, and Sanqi Shang Tablets. The company’s Fangfengtongsheng Granule, which accounted for 59 percent of sales in 2010, is a prescription product on China’s Essential Drug List and qualifies for reimbursement under China’s national health insurance system.
Bohai’s own three lead products are Tongbi Capsules, Tongbi Tablets, and Lung Nourishing Syrup, all of which are eligible for reimbursement.
In 2008, Bohai granted Yantai Tianzheng a non-exclusive license to market and sell Yantai Tianzheng’s products under the Bohai brand and trademark for five years.
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Source: Bohai Pharmaceuticals Group, Inc.
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