Beijing Med-Pharm to take stake in SRIT

Beijing Med-Pharm Corp says that it has entered into an agreement with Shanghai CAS Shenglongda Biotech and Shanghai Rongheng International Trade of Orient International (Holding) regarding its potential acquisition of a majority interest in Shanghai Rongheng Pharmaceutical, a drug distribution enterprise with operations in Shanghai, China's largest city.

Under Chinese law, a proposed sale of state-owned assets, such as an equity interest in companies like Rongheng, must be posted on a regional property exchange, which in this case is the Shanghai United Assets and Equity Exchange, to permit their sale to the highest qualified bidder. Under the terms of this accord, financial terms of which have not been revealed, the parties agreed to enter into definitive transactional documents if Beijing Med-Pharm emerges as the winning bidder for Rongheng on the Shanghai Exchange.

"This agreement anticipates a positive outcome for Beijing Med-Pharm in the government bidding process and represents the intention of all parties to complete the acquisition in that event," said David Gao, chief executive of Beijing Med-Pharm. "Owning a majority equity interest in Rongheng, in addition to our recent acquisition of Beijing Wanwei Pharmaceutical, would expand our ability to offer an 'end-to-end' solution to foreign companies wishing to sell their pharmaceutical products into China." he added.