Simcere Acquires Nanjing Tung Chit
NANJING, China, November 26, 2007 /Xinhua-PRNewswire/ -- Simcere Pharmaceutical Group , a leading manufacturer and supplier of branded generic pharmaceuticals and manufacturer of the patented anti-cancer biotech product Endu in China, announced today that it has acquired 100% of Master Luck Corporation Limited, which holds 85.7% of Nanjing Tung Chit Pharmaceutical Co., Ltd. ("Tung Chit"), for a total cash consideration of RMB32.6 million (US$4.4 million).
Tung Chit is a fast-growing manufacturer and supplier of anti-cancer drugs in China. Its leading product is a nedaplatin injection, trademarked as Jiebaisu, a first-to-market platinum based chemotherapeutic drug approved for the treatment of a wide range of solid tumors, including head-and-neck cancer, small cell and non-small cell lung cancer and esophageal cancer. Since its launch, Jiebaisu has been used by a number of major Chinese hospitals, specializing in cancer treatment, in many provinces across China. According to the China Hospital Drug Information, Jiebaisu's share of the nedaplatin market in China was over 80 percent in 2006. Being a new generation, broad spectrum platinum based chemotherapeutic drug, nedaplatin is expected to have significant growth potential in China.
Through this transaction, Simcere acquires the market leading chemotherapeutic drug Jiebaisu and enriches its anti-cancer product portfolio. In addition, it has acquired a specialized and high GMP standard chemotherapy production facility. Simcere will combine Tung Chit's anti-cancer chemotherapeutic R&D capabilities with Endu's post-launch research team to explore other potential chemotherapeutic combo-treatments as an alternative to Endu's existing combination with vinorelbine plus cisplatin. Simcere will also leverage its existing well-established Endu's marketing resources and network to increase Jiebaisu's hospital penetration, market share and sales revenue to create additional value to its shareholders.
Simcere is one of the fastest growing pharmaceutical manufacturers and suppliers in China. Acquisition is a key part of Simcere's growth strategy and has made Simcere one of the consolidation pioneers in China's pharmaceutical industry. The acquisition of the biotech anti-cancer drug Endu in September 2006 has led Simcere into the oncology therapeutic area and the acquisition of Boda Pharmaceutical in September 2007 has solidified its market leading position in stroke management. This merger and acquisition transaction, the second since listing in April this year, aligns with Simcere's growth strategy of pursuing acquisitions that expand Simcere's first-to-market pipeline and innovative drugs in oncology, neurology and anti- infectives.
''We are delighted to have Tung Chit join Simcere. As a new generation, broad spectrum and highly effective platinum based anti-cancer drug, nedaplatin has been recognized by the industry to have better efficacy but less side-effects than cisplatin and carboplatin. We believe nedaplatin has strong growth prospects in China,'' said Mr. Jinsheng Ren, Chairman, CEO and founder of Simcere Pharmaceutical Group. He added, ''This transaction enriches our anti-cancer product portfolio and strengthens our leading position in oncology so that we can better serve our patients.''
About Simcere Pharmaceutical Group
Simcere Pharmaceutical Group is a leading manufacturer and supplier of branded generic pharmaceuticals and manufacturer of the patented anti-cancer biotech product Endu in the rapidly growing China market. In recent years, Simcere has focused its strategy on the development of first-to-market generic and innovative pharmaceuticals, and has introduced a first-to-market generic stoke management medication under the brand name Bicun and an innovative anti-cancer medication under the brand name Endu. Simcere currently manufactures and sells more than 50 pharmaceutical products, including antibiotics, anti-cancer medication and stroke management medication, and is the exclusive distributor of three additional pharmaceuticals that are marketed under its brand names. Simcere concentrates its research and development efforts on the treatment of diseases with high incidence and/or mortality rates and for which there is a clear demand for more effective pharmacotherapy, such as cancer, strokes, osteoporosis and infectious diseases and currently has more than 12 pipeline products. For more information about Simcere Pharmaceutical Group, please visit http://www.simcere.com .
About Nanjing Tung Chit Pharmaceutical Co., Ltd.
Nanjing Tung Chit Pharmaceutical Co., Ltd. (''Tung Chit'') is a specialist producer and seller of anti-cancer drugs. Its anti-cancer product portfolio includes nedaplatin, injectable sodium demethylcantharidate and injectable mitoxantrone hydrochloride. Tung Chit's leading product, nedaplatin (trademarked as Jiebaisu) is a platinum-based chemotherapeutic drug approved for treatment of head-and-neck cancers, small cell and non-small cell lung cancers, and esophageal cancer.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions. In particular, the quotations from management and information contained in the section Financial Outlook in this press release contain forward-looking statements. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Further information regarding these and other risks is included in Simcere's filing with the U.S. Securities and Exchange Commission at http://www.sec.gov . Simcere does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please contact: In China: Eric Wang Lam Cheung Vice President, Investor Relations Simcere Pharmaceutical Group Tel: +86-25-8556-6666 x8898 Email: In the United States: Michele Loguidice Brunswick Group LLC Tel: +1-212-333-3810 Email:firstname.lastname@example.org email@example.com
CONTACT: In China - Eric Wang Lam Cheung, Vice President, InvestorRelations of Simcere Pharmaceutical Group, +86-25-8556-6666 x8898, or; or In the United States - Michele Loguidice ofBrunswick Group LLC, +1-212-333-3810, or , for SimcerePharmaceutical Group firstname.lastname@example.org email@example.com
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Posted: November 2007