China Sky One to buy Peng Lai Jin Chuang

US-listed drugmaker China Sky One Medical has signed an agreement to acquire Peng Lai Jin Chuang Company, a newly-established pharmaceutical firm that recently obtained Good Manufacturing Practice certification approval from the country's State Food and Drug Administration.

Under the terms of the agreement, the marketer and distributor of drugs and diagnostics in China, will acquire 100% of Jin Chuang's assets for a cash payment of 17.0 million renminbi ($2.5 million) and 32.0 million renminbi of China Sky One's common shares. In exchange, the firm will obtain Jin Chuang's 70.0 million renminbi in assets, which includes franchise, production and operating rights for a portfolio of 20 approved drugs, including ones for the treatment of colds, cardiovascular disease and depression.

The acquisition is expected to close on or before June 30 and will take place through China Sky One's wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company. The former's chief executive, Yan-qing Liu, said "Jin Chuang allows us to broaden our product lines and improve our manufacturing capabilities."