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news.Dongsheng Pharmaceutical has entered into an agreement with Shanghai Wan'Te Pharmaceutical to acquire the intellectual property, exclusive sales and manufacturing rights of micro-emulsion alprostadil injection from Wan'Te for total proceeds of RMB10m ($1.5m), of which RMB5m ($750,750) will be paid in cash and RMB5m ($750,750) will be paid in shares of the company's common stock.
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However, if the trading price of the Dongsheng Pharma’s common stock is less than $1.50 per share on the date on which the RMB5m ($750,750) of common stock is to be issued, Wan’Te shall have the right, but not the obligation, to require the company to pay to it RMB5m ($750,750) in cash in lieu of such shares of common stock.
Dongsheng Pharma targets launching sales of micro-emulsion alprostadil injection in March 2011.
Dongsheng Pharma CEO Zhu XiaoDong said that with full control of the technological, sales and manufacturing rights, leveraged with the company’s extensive sales network within China, alprostadil represents an exciting opportunity for Dongsheng to diversify its revenue sources.
Headquartered in Chengdu, Sichuan Province, China, Dongsheng Pharmaceutical engages in pharmaceutical technology promotion, trading and warehousing of traditional Chinese medicine and bio-chemistry products.
The company sells prescription and non-prescription drugs and provides new medicine research and development and drug registration services distributing to more than 30 provinces in China and throughout Southeast Asia.