Tongjitang expects $72M from IPO

Tongjitang Chinese Medicines Co, a Cayman Islands-incorporated specialty pharmaceutical firm focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, says that its initial public offering of American Depositary Shares were due to begin trading on the New York Stock Exchange on March 19, under the symbol TCM.

Tongjitang expects the net proceeds from this offering to be around $72.0 million and plans to use these to enhance the marketing of its flagship osteoporosis treatment, Xianling Gubao, as well as other products. The proceeds will also help to strengthen its R&D infrastructure and broaden and commercialize its product pipeline; and to fund working capital and other general corporate purposes, which may include product licensing and strategic acquisitions of businesses. Tongjitang will not receive any of the proceeds from the sale of the ADSs by the selling shareholders.