Under the terms of the agreement, American Oriental Bioengineering makes an equity investment of $18 million in exchange for 30 million shares of newly-issued China Aoxing common stock, priced at $0.60 per share, and owns approximately 38% of China Aoxing.
China Aoxing and American Oriental Bioengineering intend to collaborate on sales of China Aoxing’s current product portfolio, particularly Naloxone, as well as commercialization of China Aoxing’s narcotic drug development pipeline, which includes Oxycodone and Tilidine. The agreement also includes working together in the areas of marketing, branding, international product licensing and research and development.
Additionally, China Aoxing closed its previously announced acquisition of Shijiazhuang Lerentang Pharmaceutical, a China-based pharmaceutical company focused on pain-management products.
Zhenjiang Yue, chairman and CEO of China Aoxing, said: “We are delighted to partner with American Oriental Bioengineering, a leading pharmaceutical company in China’s healthcare market. Their interest in our core competencies, namely research and development and GMP-certified manufacturing of narcotics, validates our efforts to capitalize on the nascent pain-management opportunity in China.”