China Biopharma to buy Chinese distributor

New Jersey, USA-based China Biopharma says that its Chinese operating subsidiary, Hainan CITIC Biopharmaceutical Development, has signed a letter of intent to acquire 100% of the interest of Beijing Tiancheng Haixin Pharmaceutical, a regional distribution company headquartered in Beijing, China. The company believes that the acquisition will expand CB's presence in the northern region of China with BTHP's well established distribution licenses and logistic facilities. The acquisition would also add direct distribution channels into 175 hospitals in the region. This acquisition would bring $3.0 million of additional turnover in 2007 and $6.0 million in 2008 into HCBP's current revenue source.

According to the letter of intent, HCBP would use its internal available resource to complete the acquisition. "We are very happy to see this acquisition could take place," said Peter Wang, chief executive of China Biopharma, adding: "it would significantly improve our current distribution platforms and widen our product lines in the near future."