PLYMOUTH MEETING, Pa., Nov. 20 /PRNewswire-FirstCall/ -- BMP Sunstone Corporation (Nasdaq: BJGP) ("BMP Sunstone" or the "Company") today announced that its wholly-owned subsidiary, Sunstone (Tangshan) Pharmaceutical Co., Ltd ("Sunstone"), has signed an agreement to acquire "Runchang capsule," a liquid- filled hard capsule (LFHC) used to treat constipation. Sunstone will also receive the entire LFHC filling and sealing production line, as well as related LFHC technology from Darentang Pharmaceutical, which is a subsidiary of Tianjin Zhongxin Pharmaceutical Group Corporation Limited (SSE: 600329; SGX: TIAN). Upon completion of the transaction, BMP Sunstone will become the only current manufacturer of LFHC capsules in China. The Company plans to start promoting the Runchang capsule in the Chinese market in late 2009.
Zhiqiang Han, President and Chief Operating Officer of BMP Sunstone, commented, "The Runchang capsule is a natural plant-based medicine for the treatment of constipation. Compared with competing products on the market, the capsule specifically delivers the medicine to the colon area through its unique LFHC formulation. In addition, the Runchang capsule fits well into our current therapeutic focus in women's health, as women make up the majority of the demand in constipation market."
David Gao, Chief Executive Officer of BMP Sunstone, concluded, "Besides acquiring an approved product, the acquisition will afford us the sole proprietary ownership of LFHC technology in China. We plan to further utilize the targeted-release technology to our existing products to enhance our competitive position and, ultimately, our market share. We intend to fully leverage our existing channels and sales platform to capitalize on the market demand for constipation products, especially within the areas of women's and children's health."
Mr. Han continued, "As living standards have improved in China, the dietary structure and lifestyles have also evolved and fiber content in the diet has been increasingly replaced by protein. As a result, the incidence of constipation has surged and in 2008, we believe the constipation market in China has grown to more than 7 billion RMB with an annual growth rate of 9%- 10% and approximately 6% of Chinese people, of which 80% are women, suffer from varying degrees of constipation. As a dedicated provider of women's and children's health, Sunstone has successfully established three national brands: Confort (for the treatment of female genital tract infection); Nemei (for the treatment of other female diseases); and Goodbaby (for the treatment of pediatric diseases). The Runchang capsule can utilize our existing channels for women's branded products. We believe the Runchang capsule provides us with a good opportunity to extend our brands and product portfolio."
About BMP Sunstone Corporation
BMP Sunstone Corporation is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Currently this portfolio includes eight products under exclusive multi-year licenses for China, primarily focused on women's health and pediatrics. The Company also owns Sunstone Pharmaceutical Co. Ltd., which manufactures leading pediatric and women's health products, including two of China's most recognized brands, "Hao Wawa" and "Confort," sold through approximately 50,000 pharmacies in China. The Company also provides pharmaceutical distribution services through its subsidiaries in Beijing and Shanghai, and through its affiliate, Guangzhou Pharmaceuticals Corp. The Company has its main office in Beijing, with a US office in Plymouth Meeting, PA. For more information, please visit http://www.bmpsunstone.com .
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts, including but not limited to statements about the timing of the completion and terms of the proposed acquisition of the assets related to the Runchang capsule, the timing of the Company's promotion of the Runchang capsule in the Chinese market, the market demand for the Runchang capsule and the ability of the Company to leverage our existing channels and sales platform to capitalize on the market demand for constipation products. These statements are subject to uncertainties and risks including, but not limited to, negotiating definitive terms and definitive agreements regarding the proposed acquisition, satisfying the conditions in such definitive agreements, regulatory review, sales and marketing, operating performance, general financial, economic, and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, the ability to timely manufacture and distribute the Runchang capsule and other risks contained in reports filed by the Company with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward- looking statements to reflect events or circumstances after the date hereof.
|SOURCE BMP Sunstone Corporation|
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