Simcere to acquire 37.5% stake in Jiangsu Yanshen
May 27, 2009 -- Simcere Pharmaceutical Group, a manufacturer of branded generic pharmaceuticals in China, has signed an agreement to acquire a 37.5% stake in Jiangsu Yanshen Biological Technology Stock, a developer and manufacturer of vaccines, from existing shareholders for a total cash consideration of approximately RMB195.5 million.
Upon the closing of the transaction, Simcere is expected to be the largest shareholder in Jiangsu Yanshen.
Jiangsu Yanshen's core products include an influenza vaccine and a human use rabies vaccine (vero cell), which reportedly have the second and the fourth largest market shares in China respectively.
In addition, Jiangsu Yanshen has received a new medicine certificate from the PRC State Food and Drug Administration (SFDA) for its freeze-dried human use rabies vaccine and has completed clinical trials of its purified hepatitis A inactivated vaccine. The SFDA approval for the purified hepatitis A inactivated vaccine and GMP certification for the associated new manufacturing facility are pending.
Jinsheng Ren, chairman and CEO of Simcere Pharmaceutical Group, said: "Vaccines have strong market potential and represent one of China's key emerging industries. We are delighted to enter this new market through our investment in Jiangsu Yanshen. This is another significant development for Simcere in the biopharmaceutical area, following our recent investment in Shanghai Celgen Bio-Pharmaceutical."
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