Effective immediately, Alliance BMP will account for financial results from its 50% stake in Guangzhou Pharmaceuticals (GP), the third largest pharmaceutical wholesaler in China. The accretive transaction is expected to close by the end of January 2008, at which point Beijing Med-Pharm will complete payment for its 20% stake in the joint venture and David Gao, Beijing Med-Pharm’s CEO, will commence serving as chairman of GP.
The transaction involves a total capital investment of $74.4 million in cash in exchange for a 50% ownership interest in GP.
David Gao, CEO of Beijing Med-Pharm, said: “We are very excited to receive our joint venture business license and complete this critical step in closing the acquisition of the 50% stake in GP.”