Beijing Med-Pharm Corporation Wins Bidding for Shares of Chinese Drug Distributor Shanghai Rongheng
PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--Jan 16, 2007 - Beijing Med-Pharm Corporation (Nasdaq: BJGP) today announced that it has been notified that it is the winning bidder in a sale of shares representing a majority interest in the Shanghai Rongheng Pharmaceutical Co., Ltd. ("Rongheng") posted on the Shanghai United Assets and Equity Exchange (the "Shanghai Exchange"). This will allow Beijing Med-Pharm to enter definitive agreements with the owners of Rongheng to complete the purchase of a majority stake in the regional pharmaceutical distribution company operating from China's largest city.In May 2006, Beijing Med-Pharm announced that it had entered into an agreement (the "May 2006 Agreement") with the owners, Shanghai CAS Shenglongda Biotech (Group) Co., Ltd. ("Shanghai CAS") and Shanghai Rongheng International Trade Co. Ltd. of Orient International (Holding) Co. ("Orient International"), regarding its potential acquisition of a majority interest in Rongheng.
Under Chinese law, a proposed sale of state-owned assets, such as equity interests in companies such as Rongheng, must be posted on a regional property exchange, in this case the Shanghai Exchange, to permit their sale to the highest qualified bidder. Beijing Med-Pharm announced that the Rongheng shares were accepted for posting on the Shanghai Exchange on November 30, 2006. Under the terms of the May 2006 Agreement, the parties agreed to enter into definitive transactional documents if Beijing Med-Pharm emerged as the winning bidder for Rongheng on the Shanghai Exchange.
If the parties are able to execute definitive documents for the acquisition by Beijing Med-Pharm of a majority interest in Rongheng, the transaction must also be approved by the Ministry of Commerce of the People's Republic of China. No assurance can be provided that the parties will be able to agree on definitive documents for the acquisition or that the acquisition will be completed.
About Beijing Med-Pharm Corporation
Beijing Med-Pharm is a pharmaceutical marketing and distribution company that offers the following services in China: pre-market entry analysis; clinical trial management; product registration; market research; pharmaceutical distribution to hospitals; and pharmaceutical marketing to physicians, hospitals and other healthcare providers.
Contact
Beijing Med-Pharm Corporation
Fred M. Powell, CFO, 610-940-1675
or
Media:
Sam Brown Inc.
Mike Beyer, 773-463-4211
beyer@sambrown.com
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