Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Tongjitang Chinese Medicines Company, a developer and marketer of modernized traditional Chinese medicine, has acquired 100% of Anhui Jingfang Pharmaceutical for RMB60 million in cash. Tongjitang has paid 90% of the consideration and will pay the remaining 10% near the end of April, 2009.
Subscribe to our email newsletter
Tongjitang believes that Jingfang’s Fengshi Gutong and Jingshu products, in addition to Tongjitang’s Xianling Gubao and LLF’s Heiguteng, will further the company’s brand leadership in orthopedic-focused traditional Chinese medicine in both the prescription and over-the-counter markets.
The Jingfang acquisition is also expected to augment Tongjitang’s existing presence and drive additional brand recognition in the Yangtze River Delta region, where Tongjitang already has a sizeable presence.
Xiaochun Wang, Tongjitang’s CEO and chairman of the board of directors, said: “One of our ongoing goals is to deploy capital efficiently so that we generate compelling future returns, and we believe acquiring Jingfang furthers this goal for several reasons.
“Jingfang’s main products nicely complement our existing product portfolio and further strengthen our therapeutic focus in orthopedics and geriatrics. We intend to capture incremental revenue by marketing and selling these products through our salesforce, which already focuses on the prescription orthopedics market.”