Navigation Links
China Medicine Corporation to Acquire Pharmaceutical Manufacturer in Guangzhou

GUANGZHOU, China, Oct. 30 /PRNewswire-Asia/ -- China Medicine Corporation (OTC Bulletin Board: CHME) ("China Medicine" or "the Company"), a developer and leading distributor of prescription and over-the-counter pharmaceuticals, traditional Chinese medicines ("TCM"), nutritional and dietary supplements, and medical devices and medical formulations, today announced that through its wholly-owned subsidiary in China, Konzern Pharmaceuticals, it has signed an equity transfer agreement (the "Transfer Agreement") to acquire 100% of equity interests in Sinoform Limited ("Sinoform"), a British Virgin Islands corporation, the sole shareholder of Guangzhou LifeTech Pharmaceuticals Co. Ltd. ("LifeTech"), a wholly-owned subsidiary of Sinoform. LifeTech is a developer, manufacturer and marketer of pharmaceuticals products and TCMs headquartered in Guangzhou, the People's Republic of China ("PRC").

Under the terms of the Transfer Agreement, China Medicine will acquire 100% of Sinoform's equity in LifeTech for a cash payment of RMB 57 million (US $8.3 million; 1 RMB = $0.1464) and the assumption of RMB 89.8 million ($13.2 million) in debt. Upon closing of the acquisition, China Medicine will obtain LifeTech's assets, appraised at RMB 174.3 million ($25.5 million), which include product licenses, permits, patents, land use rights, manufacturing facilities, state-of-the-art production equipment and a portfolio of 39 TCM and Western medicine products that treat a variety of illnesses, including two new products currently undergoing clinical trials. LifeTech's top-selling drug, Houerhuan Xiaoyan Capsules, for the treatment of throat infections and acute laryngitis, is projected to account for 66% of LifeTech's annual sales in 2009 and has a gross margin of 60-70%.

The acquisition is expected to close on or before December 31, 2009. Pursuant to the Transfer Agreement, the Company will pay approximately $0.549 million of the cash purchase price and make a repayment of $7.3 million of LifeTech's debt upon the execution of the Transfer Agreement, and, upon approval of the transaction by the foreign trade bureau, the Company will pay an additional $3.7 million. The remaining balance of the purchase price will be made on or before June 30, 2010. The Company plans to finance the acquisition with existing cash and operating cash flow, and will explore opportunities for financing from commercial banks, if needed.

"This acquisition represents a strategic move in our evolution to a vertically integrated pharmaceutical company and we expect it will lay the foundation for a significant contribution to our profitability in the coming years," said Mr. Senshan Yang, Chairman and CEO of China Medicine. "Specifically, the acquisition of LifeTech allows us to enhance our product line with high margin pharmaceuticals and improve our manufacturing capabilities for existing propriety products."

Following the acquisition, based on the Company's preliminary review of LifeTech's unaudited historical financial statements and projections, the Company expects the acquisition to be accretive to earnings, generating revenues of between $10.0 million and $12.0 million and net profit margin of at least 40% in 2010.

About Guangzhou LifeTech Pharmaceuticals Co. Ltd.

Founded in 1992, Guangzhou LifeTech Pharmaceuticals Co. Ltd. is a developer and manufacturer of pharmaceutical products with focus on natural-source vascular, anti-inflammatory, women's health and other TCM and Western medicine products. For the past 10 years, the Company has invested more than $10 million in developing new drugs using extracts from all natural plants and herbs, and built up a solid product pipeline. It currently sells its products in more than 10 provinces in China and has two products in final stages of clinical trials, including a TCM for the treatment of diabetes and an antibiotic intended for children. The Company's manufacturing facility is GMP certified and has 170 employees.

About China Medicine Corporation

China Medicine Corporation is a developer and leading distributor of prescription and over-the-counter ("OTC") drugs, traditional Chinese medicine products, herbs and dietary-supplements, medical devices, and medical formulations in China. The Company also has its research and development force for certain products it manufactures through OEM arrangement and distributes. The Company distributes its products to wholesale distributors including more than 300 hospitals and 500 medicine companies that sell to over 2,000 drug stores in 28 provinces throughout China. The Company actively develops a number of proprietary products for a variety of uses, including oncology, high blood pressure and the removal of toxins from food and animal feeds. For more information visit the Company's website at

Cautionary Statement

This press release contains forward-looking statements concerning the Company's business and products. The Company's actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, the Company's projections of LifeTech's financial results in 2009 and 2010, obtaining regulatory approval for new products, the expected contribution of higher margin products, government support for rural health care, competition from existing and new competitors, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Medicine Corporation undertakes no duty to revise or update any forward- looking statement to reflect events or circumstances after the date of this release.

    For more information, please contact:

    Company Contact:
     Mr. Richard P. Wu
     Chief Financial Officer
     China Medicine Corp.
     Tel:   +86-20-8739-1718

    Investor Relations Contact:
     Mr. Crocker Coulson, President
     CCG Investor Relations
     Tel:   +1-646-213-1915 (NY Office)

SOURCE China Medicine Corporation

SOURCE China Medicine Corporation
Copyright©2009 PR Newswire.
All rights reserved

Related medicine technology :

1. NeoStem Acquires China Biopharmaceuticals Holdings, Inc.; Obtains Controlling Interest in Profitable Leading Chinese Pharmaceutical Company
2. China Biopharmaceuticals Holdings, Inc. Shareholders Overwhelmingly Support Merger with NeoStem, Inc., a NYSE AMEX Listed Company Trading Under Symbol NBS
3. China-Biotics, Inc. Begins Trial Production at New Facility, Affirms 2010 Revenue Guidance
4. Varian Medical Systems to Exhibit a Wide Selection of Flat Panel X-Ray Image Detectors and X-Ray Tubes at the CMEF Show in Chengdu, China
5. China Medical Technologies to Hold its Annual General Meeting on November 16, 2009
6. Reportlinker Adds Outsourcing Preclinical Studies to China
7. Baxa Corporation Signs Exclusive Distribution Agreement With Leading Pharmaceutical Corporation in Peoples Republic of China
8. China Yongxin Pharmaceuticals Inc. Announces Second Quarter 2009 Financial Results
9. Merial invests US $70 million in Nanchang, China
10. Clifford Chance Advises Pfizer on Conditional Clearance in China of Its Merger with Wyeth
11. China-Biotics, Inc. Prices $69 Million Public Offering of Common Stock
Post Your Comments:
(Date:10/2/2017)... The Rebound mobile app is poised to become ... tide of prescription drug addiction. The app empowers users to ... stepping down their dosage in a safe, controlled manner while ... the first 100,000 people to sign up will enjoy 3 ... ...
(Date:9/25/2017)... , Sept. 25, 2017   Montrium , ... File solutions, today—from the IQPC Trial Master Files ... , NL)—announced that EastHORN Clinical Services has selected ... programs and TMF management. EastHORN, a leading European ... platform to increase transparency to enable greater collaboration ...
(Date:9/19/2017)... 2017 HistoSonics, Inc., a venture-backed medical device company developing a non-invasive, robotically assisted, ... three leadership team developments today:   ... ... Tom Tefft ... Veteran medical device executive Josh Stopek , PhD, who has ...
Breaking Medicine Technology:
(Date:10/13/2017)... ... , ... Global Healthcare Management’s 4th Annual Kids Fun Run brought out many ... event, sponsored by Global Healthcare Management’s CEO, Jon Letko, is aimed at getting kids ... of all ages; it is a non-competitive, non-timed event, which is all about having ...
(Date:10/13/2017)... ... October 13, 2017 , ... ... giving viewers the lowdown on sciatica in a new episode of "Success Files," ... on current events and innovation and investigates each subject in-depth with passion and ...
(Date:10/13/2017)... ... 13, 2017 , ... “The Journey: From the Mountains to the Mission Field”: ... souls in the Philippines. “The Journey: From the Mountains to the Mission Field” is ... Bible. She has taught all ages and currently teaches a class of ladies at ...
(Date:10/12/2017)... ... October 12, 2017 , ... First Healthcare Compliance (FHC), ... will showcase a range of technology and learning solutions at the 68th Annual ... Expo to be held October 14–18, 2017 at the Mandalay Bay Resort in ...
(Date:10/12/2017)... ... October 12, 2017 , ... Planet Fitness, one of the largest and fastest ... to open a flagship location in Covington, LA at 401 N. U.S. Highway 190, ... next to Office Depot in the Holiday Square shopping center. Its location allows it ...
Breaking Medicine News(10 mins):