AXM's Shengyang subsid to buy Beijing Yuhuatang

California, USA-based AXM Pharma, a manufacturer of proprietary and generic pharmaceutical and nutraceutical products for Asian markets, says that its wholly-owned subsidiary, AXM Shengyang, has agreed to purchase Beijing Yuhuatang Biological Sci-Tech Development company. Pursuant to the transaction, AXM will issue 4.5 million shares and 1.0 million renminbi ($129,065) to Yuhuatang, in return for all of the latter's common stock.

Under the terms of the deal, AXM will acquire several androstenedione-based products, for which demand in China significantly exceeds supply. The firm added that it can produce these drugs at a Good Manufacturing Practice-certified facility that it will construct in the next few months, and expects to launch them during the fourth quarter of 2007.

In addition, the company reported that it has received a 3.0 million renminbi investment from US finance group Warner, which it will use for general corporate purposes, including the development of new products.