The Straits Times / The Business Times News on AsiaPharm
AsiaPharm buys cancer treatment drug for 80m renminbi
By DONALD URQUHART
Oct 25, 2006
The Business Times
CHINESE pharmaceutical group AsiaPharm has announced the acquisition of a proprietary cancer treatment drug along with its international and Chinese patents and distribution channels for 80 million renminbi (S$15.9 million).
In a statement to the Singapore Exchange, the mainboard-listed group announced that it purchased what it said is the world's only approved chemical sensitiser for radiotherapy in cancer treatment which inhibits the revival of cancer cells destroyed during the radiation therapy.
The drug, CMNa (Sodium Glycididazole), and its patents, process technology, manufacturing licence and distribution networks were bought from Guangzhou-based Lifetech Pharmaceuticals.
The drug is currently patented in China, the US and the European Union and is awaiting Japanese patent approval.
The group said international patents and coverage in medical journals on the drug's efficacy will give it new opportunities for marketing and cooperation overseas as the company strengthens its position as a leading regional pharmaceutical manufacturer.
'M&A remains one of our key growth generators for the future. We remain on the lookout for prospective products in the domestic and international pharmaceutical industry that complement our current operations and will contribute to our growth and future development,' said AsiaPharm executive chairman Liu Dianbo.
AsiaPharm will pay for the all-cash acquisition in tranches, starting with the disbursement of 34 million renminbi and followed by the balance 46 million renminbi after the transfer of all product patents and equity shares to the AsiaPharm Group.
The group has also been granted the option to acquire Lifetech's existing manufacturing facilities in Guangzhou for 40 million renminbi within five months from the date of this acquisition.
For the financial year ending Dec 31, 2006, CMNa sales are expected to reach 30 million renminbi with a net profit of about 13 million renminbi.
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