Pharmaceutical Business review

American Oriental Bioengineering buys Chinese drug distributor

Heilongjiang Qitai Pharmaceutical Limited (HQPL specializes in pharmaceutical product distribution and is headquartered in the Heilongjiang province.

American Oriental Bioengineering agreed to pay $4 million to acquire approximately $4.4 million worth of HQPL’s net assets, $4.3 million of which are tangible assets, along with $0.1 million in associated liability.

“We are pleased to close this acquisition as we expect it to immediately contribute to our revenue and earnings power,” commented Tony Liu, chairman and CEO of American Oriental Bioengineering. “By acquiring HQPL we will obtain an established and extensive distribution channel in China while gaining access to their existing customer base. From a strategic perspective, this acquisition saves both time and money as it would have required substantial time and capital investment if we were to build such a network from the ground up.”