China Health Holding, a developer, manufacturer, marketer and distributor of pharmaceutical products and dietary supplements in China and worldwide, has executed a binding acquisition letter of intent to acquire 51 per cent or more ownership of Xi'an Chunhui Pharmaceuticals Co. Ltd., based in the People's Republic of China.
The letter gives China Health first refusal and exclusive rights to complete the acquisition of Xi'an Chunhui Pharmaceuticals within 12 months of the execution date (that is, until November 27, 2007). The completion of the acquisition is subject to negotiation and execution of a definitive acquisition agreement, as well as full legal and financial due diligence. The latter includes the determination of the valuation of Xi'an Chunhui Pharmaceuticals and the completion and delivery of audited financial statements of Xi'an Chunhui Pharmaceuticals according to US General Accepted Accounting Principles (US GAAP).
Julianna Lu, Founder and CEO of China Health Holdings, commented, "The acquisition contemplated by the letter of intent with Xi'an Chunhui Pharmaceuticals is the latest in a series of recent steps China Health has taken to execute its comprehensive growth strategy. Through this and other transactions, we are in the process of building a powerful network of established China-SFDA-certified pharmaceutical drug manufacturing facilities along with extensive hospital and drugstore distribution channels in China. We will also have an enhanced pipeline of hundreds of China-SFDA certified pharmaceutical drugs."
In addition to the pending Xi'an Chunhui Pharmaceuticals, China Health has announced several other pending or completed acquisitions of China-based pharmaceutical firms in recent months. It has executed letters of intent to acquire 51 per cent or more of Beijing Boran Pharmaceutical Co. Ltd., Shaanxi Wanan Pharmaceuticals Co. Ltd.; and Henan Tiankang Pharmaceuticals Co. Ltd and all letters give China Health legal first refusal and exclusive rights. It has executed "Acquisition Definitive Agreements" for acquiring 100 per cent of Shaanxi MeiChen Pharmaceuticals, Ltd. and 60 per cent of Henan Furen Huaiqingtang Pharmaceuticals Co. Ltd. Also, it has signed a letter of intent with WangJing Hospital and the WangJing Hospital of China Academy of Chinese Medical Sciences, in the People's Republic of China, to develop the China International University of Traditional Chinese Medicine and the University Hospital for Traditional Chinese Medical Sciences.
In the next 12 to 24 months, China Health plans to complete further acquisitions and transactions with major pharmaceutical companies in the People's Republic of China, bringing its total assets to approximately US$100 million. At the end of this process, it projects annual gross revenue of approximately US$100 million, with annual net income of approximately US$10 million to US$15 million.
Xi'an Chunhui Pharmaceuticals, based in Shaanxi Province, is a drug manufacturer, developer and distributor with good manufacturing practices (GMP) certification from the China State Food and Drug Administration (China-SFDA). It distributes a total of 50 China-SFDA certified herbal drugs to China-SFDA Licensed Hospitals and drugstores across Shaanxi province and the People's Republic of China.
China Health Holding, Inc. is a developer, manufacturer and marketer of natural medicinal products and pharmaceutical drugs in China and worldwide, with extensive expertise in the field of traditional Chinese medicine and the Chinese pharmaceutical industry. Its immediate goal is the profitable penetration of the growing global and China pharmaceutical industry and market through acquisitions of major pharmaceutical companies in the People's Republic of China and worldwide.