On July 7, 2008, BMP Sunstone announced that it received the New Business License for BMP Sunstone's establishment of an Enterprise with Foreign Investment in the People's Republic of China, from the Shanghai Administration for Industry and Commerce (SHAIC). With receipt of this license, BMP Sunstone completed the acquisition of 63.3 percent of Shanghai Rongheng Pharmaceutical Co., Ltd. (''Rongheng''). Through this acquisition, BMP Sunstone has gained direct coverage of 80 percent of the top-tier hospitals and 40 percent of the retail pharmacies in Shanghai.
On July 18, 2008, BMP Sunstone signed a non-binding letter of intent to acquire 75 percent of Zhangjiakou Shengda Pharmaceutical Co., Ltd (''Shengda'') for up to RMB 30.0 million (approximately $4.4 million). The Company expects to complete the transaction by the end of the fourth quarter of 2008. Terms of the acquisition are not yet finalized, as completion is subject to a number of conditions, including finalization of due diligence and definitive documentation. The Company intends to use the cash available at Sunstone to fund the acquisition. The letter of intent also includes a six month exclusivity clause.
The Company is raising its guidance for 2008 revenues from at least
$96.0 million to a range of $110 to $120 million. This increase is
attributable to the addition of Rongheng as well stronger than expected
organic growth from our existing business. The Company is expecting to have
non-GAAP net income of $4.0 million to $5.0 million. Our non-GAAP guidance
of net income excludes stock based compensation, amortization related to
the acquisition of Sunstone and Wanwei and debt discount amortization and
issuance costs related to the $23 million debt issued in November 2007. The
Company's financial guidance also excludes any potential or pending
acquisitions, new product launches and profit sharing from Alliance BMP
|SOURCE BMP Sunstone Corporation|
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