(Yicai Global) Aug. 11 – Guanhao Biotech Co. Ltd [SHE:300238], a Guangdong-based pharmaceutical firm will invest CNY266 million (about US39.89 million) to acquire a 53.35 percent stake in two pharmaceutical developers under its parent Guangdong Zhiguang Biotechnology Co. Ltd.
The company will acquire a 53.35 percent stake in Guangdong Zhiguang's two subsidiaries -- Beijing Wenfeng Tianji Pharmaceutical Technology Co Ltd and Guangdong Zhonghao Pharmaceutical Co Ltd for CNY266 million (about USD40 million). Upon completion of the deal, Guanhao Biotech will hold 58.2 percent stake of each of the two companies, thus becoming the controlling shareholder of the two companies, Guanhao Biotech said in a statement August 10.
Beijing Wenfeng is independently researching and developing the chemical drug, Benvitimod. The drug can be used to treat psoriasis and eczema and other diseases, the statement said, adding that at present, Beijing Wenfeng has submitted the application to market the drug to China's Food and Drug Administration (CFDA) and was formally accepted. The second acquisition, Zhonghao Pharmaceutical will be responsible for the production and marketing of the drug.
Guangdong Zhiguang is the controlling shareholder of Guanhao Biology, holding 55,044,800 shares of the latter, accounting for 20.76 percent of the total share capital.
The acquisition is based on the current progress of approval of Benvitimod and its broad market prospects, but it has not yet obtained CFDA approval and certification. If Beijing Wenfeng fails to obtain approval before December 31, 2017, Guanhao Biotech reserves the right to request Guangguang Zhiguang to repurchase the shares of the transaction, Guanhao Biotech said.