(Yicai) Oct. 20 -- Chinese biotechnology firm Sino Biological will buy Canadian peer SignalChem Biotech for USD48 million.

Sino Biological yesterday signed a deal with the shareholders of SignalChem Biotech to buy the Vancouver-based company, the Chinese firm announced late yesterday.

SignalChem Biotech’s team and resources in Canada will help Sino Biological improve its global business positioning, as well as capabilities of expanding business and serving clients in North America, the Beijing-based company added.

Sino Biological and SignalChem Biotech are highly complementary in business, as the former’s sales network, large production capacity, global logistics system, and industry-supporting facilities can help the latter attract more clients and increase sales, while SignalChem Biotech’s production quality control platform can help Sino Biological enrich its products, hike customer stickiness, and include small molecule drug makers as its clients, Sino Biological noted.

SignalChem Biotech studies, develops, and produces high-quality enzyme protein products, some of which are necessary reagents to develop drug targets and have been widely used by pharmaceutical and biotechnology firms, Sino Biological said.

SignalChem Biotech logged CAD6.9 million (USD5.1 million) in operating revenue and CAD3.2 million in net profit last year and CAD3.6 million in operating revenue and CAD1.6 million in net profit in the first half of this year, according to financial data released by Sino Biological.

Shares of Sino Biological [SHE: 301047] were trading down 0.6 percent at CNY80.32 (USD10.98) as of 11.15 a.m. today. The broader Shenzhen Component Index fell 0.3 percent to the lowest since Dec. 31, 2019.

Editor: Futura Costaglione