BMP Sunstone acquires 50% of Shengda

China's BMP Sunstone has signed an agreement to acquire 50% of Zhangjiakou Shengda Pharmaceutical for 20.0 million renminbi ($2.9  million) in cash, subject to customary closing conditions.

Shengda, which has now changed its name to Sunstone Shengda, is a  leading manufacturer of pediatric pharmaceuticals and specializes in  antibiotic R&D. It has approval from the Chinese State Food and Drug  Administration to manufacture approximately 76 products, and primarily  focuses on penicillin and cephalosporin. Dosages and flavors are  specifically designed for the unique needs of children, and the firm  says its product portfolio includes some of the most widely-prescribed  and effective pediatric medicines, such as amoxicillin tablets and  capsules, as well as clavulanate potassium compounds. The product  formulations are dispersible tablets, which offer consistently high  levels of safety and efficacy, and are extremely welcome by parents for  easy administration to children, says BMP.

David Gao, chief executive of BMP Sunstone, said: "the completion of  this equity investment strengthens our pharmaceutical production  capacity, allows us to optimally allocate our resources and, ultimately,  reinforces our competitive position. This builds on our achievements  since acquiring Sunstone in February 2008, when we successfully entered  the Chinese pharmaceutical manufacturing sector and developed into a  vertically integrated company."