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news.Beijing Med-Pharm has signed an agreement with Sunstone Pharmaceutical to acquire the remaining 51% of the company it had not already agreed to purchase. After this transaction, the company will seek shareholder approval to change its name to BMP Sunstone Corporation.
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Under the terms of the new agreement, Beijing Med-Pharm will acquire the remaining of the issued share capital of Hong Kong Fly International Health Care Limited, a Hong Kong corporation that holds a 100% equity interest in Sunstone, for a total of 8 million shares of unregistered stock ($92.7 million based upon September 27, 2007, closing price of $11.59 per share).
At closing, 20% of these shares will be held in escrow, half of which will be released upon the achievement of certain milestones by Sunstone, with the other half retained as security for indemnification events.
David Gao, CEO of Beijing Med-Pharm, said: “This acquisition will be a transformative event for Beijing Med-Pharm and provides many immediate and long-term benefits to our business. Sunstone will allow us to expand into the increasingly important channel for over-the-counter medicines in China, leverage the promotional reach of both OTC and hospital sales forces to attract more western products and partners, and enhance the strength and breadth of our management team.”