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news.BMP Sunstone has announced that its wholly-owned subsidiary, Sunstone Pharmaceutical Co, has signed an equity transfer agreement with Beijing Penn Pharmaceutical Sci-Tech Development Co, which will enable it to acquire 50% of Zhangjiakou Shengda Pharmaceutical Co, for RMB20 million in cash, subject to customary closing conditions.
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The company is funding the transaction entirely from Sunstone’s existing cash flow and, in the future, intends to acquire a majority stake and potentially consolidate Shengda’s financial results.
Following the recent signing of the equity transfer agreement, Shengda changed its name to Sunstone Shengda (Zhangjiakou) Pharmaceutical Co. Additionally, Zhiqiang Han, president and COO of BMP Sunstone, will serve as chairman of both Sunstone and Sunstone Shengda going forward.
Mr Zhiqiang Han has said: “Our equity ownership stake in Shengda complements our existing production line and helps us launch additional products into the oral pediatric market. We look forward to combining Shengda’s product portfolio and R&D expertise with Sunstone’s platform in pediatric pharmaceuticals.
“We also plan to leverage BMP Sunstone’s existing national distribution network so that Shengda can access the key markets of Beijing, Shanghai and Guangzhou, where our most compelling patient populations reside. Utilizing our existing sales coverage and nationally-recognized brand, Good Baby, we also expect to realize opportunities immediately by increasing sales volume and improving sales margins.”