Beijing Med-Pharm closer to buying Rongheng

Beijing Med-Pharm has been notified that it is the winning bidder in a sale of shares representing a majority interest in Shanghai Rongheng Pharmaceutical posted on the Shanghai United Assets and Equity Exchange. This will allow Beijing Med-Pharm to enter definitive agreements with the owners to complete the purchase of a majority stake in the regional pharmaceutical distribution company, which operates from China's largest city.

In May 2006, BMP announced that it had entered into an agreement with the owners, Shanghai CAS Shenglongda Biotech and Shanghai Rongheng International Trade Co, regarding a potential acquisition. Under Chinese law, the sale of state-owned assets, such as equity in Rongheng, must be posted on a regional property exchange to permit their sale to the highest qualified bidder. BMP announced that the Rongheng shares were accepted for posting on the Shanghai Exchange on November 30, 2006.

BMP noted that, if the parties are able to execute definitive documents for the acquisition of a majority interest in Rongheng, the transaction must also be approved by the Ministry of Commerce of the People's Republic of China.