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news.NeoStem, a stem cell collection company, has agreed to acquire China Biopharmaceuticals Holdings, a vertically integrated pharmaceutical company. It is anticipated that this acquisition will expand the capabilities and worldwide reach of NeoStem.
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The consideration to be paid by NeoStem to effect the merger consists of the issuance of a combination of 13 million shares of common stock, up to 4.4 million warrants to purchase shares of common stock and seven million shares of convertible preferred stock.
This acquisition is subject to the approval of the shareholders of NeoStem and China Biopharmaceuticals Holdings, regulatory approvals, as well as the satisfaction of other customary conditions and is expected to close in the first calendar quarter of 2009.
Suzhou Erye Pharmaceutical (Erye), the primary subsidiary of China Biopharmaceuticals, is located in Suzhou, China. NeoStem said that it will have a 51% controlling interest in Erye, which currently manufactures over 100 drugs on seven GMP lines, including small molecule drugs.
Robin Smith, CEO of NeoStem, said: “We are excited about our collaboration with Suzhou Erye Pharmaceutical as it will open new markets, distribution channels and capabilities for production of stem cell related products in China.”