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Sihuan Pharma's subsidiary to acquire Dupromise for RMB 2.4 billion
Hong Kong | Saturday, November 27, 2010, 09:00 Hrs  [IST]

Sihuan Pharmaceutical Holdings Group Ltd. a leading pharmaceutical company with the largest cardio-cerebral vascular drug franchise in China by market share, announced that its wholly-owned subsidiary Sun Moral International Limited has conditionally agreed to purchase the entire equity interests in Dupromise Holdings Limited, producer of quality pharmaceutical products in the PRC, from JSAB Investment Holding Limited at an aggregate consideration of no more than RMB2,400,000,000 (equivalent to HK$2,800,793,558), based on the 2011 audited net income multiplied by 12.


According to the agreement, the aggregate consideration will be payable by cash in several instalments, partly funded by the proceeds of the IPO and partly from the internally generated funds of the Company. The agreement is in relations to the production and sales of three exclusive products (Aodimei (Cerebroside - Kinin Injection), Yuanzhijiu (Troxerutin and Cerebroprptein Hydrolysate Injection), and Fufangsanwei B(II) Injection (Compound Trivitamin B(II) for Injection)) and various exclusive formulations of the Target Company, mainly covering cardio-cerebral vascular diseases and other therapeutic areas, which will offer considerable growth potential and complementary to the Company’s current product portfolio.


Dupromise is principally engaged in the development, manufacture, marketing and distribution of quality pharmaceutical products in the PRC. Having developed and manufactured products with more than 40 specifications, the Target Company’s main pharmaceutical products have been admitted into the provincial or national medical insurance catalogue, and the three exclusive products are listed on the published provincial medical insurance catalogues of 20, 16 and 14 provinces, respectively. Its products have wide clinical applications and recognition in China, offering a promising market and growth potential.


Dr. Che Fengsheng, chairman and CEO of the Company, said, “We have been actively looking for opportunities to acquire suitable pharmaceutical companies in the PRC that matches our criteria for synergistic growth potential. With the benefit of our strong marketing capability, coupled with their market exclusivity in the PRC, Dupromise’s three exclusive products could soon become as well recognized as other flagship products of Sihuan Pharmaceutical. We believe that the inclusion of Dupromise will greatly enrich our product resources, provide greater synergy, strengthen our competitiveness and enhance our profile as one of the leading pharmaceutical companies in the PRC.”


Sihuan Pharmaceutical currently offers a portfolio of 14 cardio-cerebral vascular drugs, which are used for the treatment of a range of cardio-cerebral vascular diseases. The Company’s best-selling cardio-cerebral vascular drugs, Kelinao, Anjieli and Chuanqing, collectively accounted for approximately 17.1% of the cerebral and peripheral vascular therapies market, the largest sub-segment of the cardio-cerebral vascular drug market in China in 2009. The Company generated a significant portion of revenue from the sales of cardio-cerebral vascular pharmaceutical products, which accounted for 79.1% and 83.0% of the total revenue, respectively.


Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a leading pharmaceutical company and the largest cardio-cerebral vascular drug franchise in China by market share. The success of the Group can be attributed to its differentiated and proven sales and marketing model, diversified portfolio of market leading drugs, extensive nationwide distribution network and strong research and development capabilities.

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