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news.China Biopharmaceuticals is to acquire a 51% ownership interest in fellow Chinese company Chengdu Tianyin Pharmaceutical, and has reached an agreement to immediately assume operational control of the company.
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“This acquisition will strengthen China Biopharmaceuticals’ market position, as we increase our manufacturing capacity to supplement our continued expansion in our marketing and distribution channels,” said Chris Mao, chairman and CEO of China Biopharmaceuticals.
Tianyin is a pharmaceutical company located in the city of Chengdu, Sichuan Province, China, specialized in research and development, production and sales of pharmaceutical products as well as Chinese traditional medicine products.
Pursuant to the Agreement, China Biopharmaceuticals will be issuing 3 million shares of its common stock to the shareholders of Tianyin, and has agreed to invest an amount of $2 million into Tianyin operations.
An additional 300,000 shares of common stock of the company will be issued to the shareholders if Tianyin’s after-tax audited profit for the year ended December 31, 2006 reaches at least $3 million.
According to unaudited figures provided by Tianyin, for the first 11 months of 2005 the sales revenue reached approximately $4.5 million with a net income of approximately $1 million.