The company anticipates that consideration for the acquisition will be in cash, with an initial payment of approximately RMB25.5 million. Tongjitang will make additional payments over the next three years based on Pulante’s financial and operational performance. The transaction is subject to customary closing conditions and applicable regulatory approvals.
Pulante is located in Xining in the Qinghai province of China and was founded in 2000. It develops, manufactures, markets, and distributes SFDA-approved Tibetan recipe-originated medicines in China.
Xiaochun Wang, CEO and chairman of Tongjitang, said: “This transaction will further diversify our product portfolio, particularly in our OTC operating segment. We intend to drive Pulante’s sales with a focus on the COPD market, through our existing sales network and well-established distribution channels.”