AsianScientist (Sep. 8, 2014) – Luye Pharma Group Ltd. has entered into an agreement to purchase a 58 percent stake of Beijing Jialin Pharmaceutical Co., Ltd. for an aggregate consideration of RMB3.68 billion (~US$600 million) in cash. The company recently raised US$764 million launching an IPO in Hong Kong.
Luye focuses on the development and marketing of innovative products in metabolic, cardiovascular and alimentary tract diseases. Jialin Pharmaceutical is a leading player in China’s pharmaceutical sector, principally engaged in products for cardiovascular disease. Its leading cardiovascular product—A LE (阿樂) (atorvastatin calcium tablets)—has become the main lipid regulator used in China.
In addition, Jialin Pharmaceutical has established a wide coverage sales network. Through the acquisition, Luye intends to enhance its sales and marketing coverage and synergies, and take advantage of the multiple channels offered by the combined network. The acquisition will also enhance Luye’s research and development (R&D) capabilities and provide valuable support to projects in its R&D pipeline and product development.
The acquisition strengthens Luye’s position China’s market for cardiovascular drugs. The company hopes that the combination of Luye and Jialin Pharmaceutical will produce considerable synergies and fresh impetus, particularly in the development of new cardiovascular drugs.
———
Source: Luye Pharma.
Disclaimer: This article does not necessarily reflect the views of AsianScientist or its staff.
