Under the terms of the agreement, China Sky One Medical’s wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, will acquire 100% of Jin Chuang’s assets for a cash payment of RMB17 million and RMB32 million of China Sky One Medical’s common shares.
In exchange, China Sky One Medical will obtain Jin Chuang’s RMB70 million in assets, which includes franchise, production and operating rights for a portfolio of 20 approved drugs, including drugs for the treatment of colds, cardiovascular disease, and depression. The acquisition is expected to close on or before June 30, 2008.
Yan-qing Liu, chairman, CEO and president of China Sky One Medical, said: “Jin Chuang allows us to broaden our product lines and improve our manufacturing capabilities. We have been focused primarily on external use products; however following this acquisition a new pipeline of internal use drugs can enhance our product line.”