Beijing Med-Pharm Announces That Alliance BMP Limited Has Received MOFCOM Approval to Acquire Interest in Guangzhou Pharmaceutical Corporation
The transaction, in which Alliance BMP Limited will make a total capital investment of RMB 545 million ($72.2 million) in cash in exchange for a 50 percent ownership interest, is expected to close before the end of the year. Alliance BMP will hold four of the eight GP Corp. board seats and David Gao, CEO of Beijing Med-Pharm and one of the principal participants in the negotiation of the transaction, will serve as chairman of GP Corp.
"Approval from MOFCOM is a critical step towards completion of the acquisition by Alliance BMP Limited of 50 percent of GP Corp.," said Mr. Gao. "When the transaction is completed, we will gain a major international partner in Alliance Boots, a collaboration that may open additional opportunities for both companies."
GP Corp. was founded in 1951 and is a subsidiary of Guangzhou Pharmaceutical Company Ltd. ("GPCL"), a company listed on the Hong Kong and Shanghai Exchanges whose ultimate parent is the Municipality of Guangzhou. GPCL will retain ownership of the remaining 50 percent of GP Corp.
GP Corp. has grown rapidly in recent years, with annual revenues increasing from RMB 4.4 billion ($565 million) in 2003 to RMB 7.4 billion ($0.9 billion) in 2006. GP Corp. serves more than 12,000 hospitals, pharmacies, and other wholesalers from eight distribution facilities located throughout Guangdong Province and southeast China.
About Beijing Med-Pharm Corporation
Beijing Med-Pharm is a pharmaceutical marketing and distribution company that is building a proprietary portfolio of branded pharmaceutical products in China and pursuing partnerships with other companies seeking to enter the Chinese pharmaceuticals market. Beijing Med-Pharm is the only U.S. public company to offer industry partners a comprehensive suite of market-entry services in China that includes pre-market entry analysis; clinical trial management; product registration; market research; pharmaceutical distribution to hospitals through a unique proprietary network; and pharmaceutical marketing to physicians, hospitals and other healthcare providers. For further information about Beijing Med-Pharm, please visit www.beijingmedpharm.com.
Forward Looking Statements
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the terms of the proposed joint venture, the funding of the capital investment by Alliance BMP Limited to GP Corp., the expected benefit for Beijing Med-Pharm and the expected timing of the closing. Forward-looking statements provide Beijing Med-Pharm's current expectations or forecasts of future events. Actual results could differ materially from those reflected in these forward-looking statements due to the inability to satisfy closing conditions, if closed ability for the joint venture to be successful, general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Beijing Med-Pharm undertakes no obligation to update publicly any forward-looking statement.
Contact
Company:
Beijing Med-Pharm
Fred M. Powell, CFO, 610-940-1675
or
Media:
Sam Brown Inc.
Mike Beyer, 773-463-4211
beyer@sambrown.com
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