China Sky One Medical, Inc. to Acquire Heilongjiang Tianlong Pharmaceutical, Inc.
China Sky One Medical, Inc. (''China Sky One Medical'' or ''the Company'') (OTC Bulletin Board: CSKI), a leading manufacturer, marketer, and distributor of over the counter pharmaceuticals for external use in the People's Republic of China (''PRC''), today announced that it has signed an agreement to acquire Heilongjiang Tianlong Pharmaceutical, Inc. (''Tianlong''), an external-use drug manufacturing specialty pharmaceutical company.
Under the terms of the agreement, China Sky One Medical's wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, will acquire 100% of Tianlong's operations for a cash payment $8.0 million and approximately $300,000 of China Sky One Medical's common shares. In exchange, China Sky One Medical will obtain Tianlong's $8.3 million in assets, which include $0.5 million in inventory, land use rights, GMP-certified manufacturing facilities, state-of-the-art production equipment, a research and development center, a portfolio of 69 approved drugs (in 98 forms) and a pipeline of 38 new drugs, all of which have been submitted to the SFDA for approval. The acquisition is expected to close on or before March 31, 2008.
''We expect the synergies of this strategic acquisition to make a significant contribution to our profitability in the coming years. Specifically, Tianlong allows us to broaden our product lines and improve our manufacturing and R&D capabilities. At the same time, we expect to leverage our sales and marketing expertise and the benefits of scale to significantly improve Tianlong's revenues and profitability,'' said Mr. Yan-qing Liu, Chairman, CEO and Director of China Sky One Medical, Inc.
In 2007, Tianlong generated revenue of $5.2 million with a net profit margin of 13%. Following the acquisition, China Sky One Medical expects Tianlong to be accretive to earnings, generating revenues of approximately $7.5 million and net profit of approximately 30% in 2008.
Source : www.earthtimes.org
Under the terms of the agreement, China Sky One Medical's wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, will acquire 100% of Tianlong's operations for a cash payment $8.0 million and approximately $300,000 of China Sky One Medical's common shares. In exchange, China Sky One Medical will obtain Tianlong's $8.3 million in assets, which include $0.5 million in inventory, land use rights, GMP-certified manufacturing facilities, state-of-the-art production equipment, a research and development center, a portfolio of 69 approved drugs (in 98 forms) and a pipeline of 38 new drugs, all of which have been submitted to the SFDA for approval. The acquisition is expected to close on or before March 31, 2008.
''We expect the synergies of this strategic acquisition to make a significant contribution to our profitability in the coming years. Specifically, Tianlong allows us to broaden our product lines and improve our manufacturing and R&D capabilities. At the same time, we expect to leverage our sales and marketing expertise and the benefits of scale to significantly improve Tianlong's revenues and profitability,'' said Mr. Yan-qing Liu, Chairman, CEO and Director of China Sky One Medical, Inc.
In 2007, Tianlong generated revenue of $5.2 million with a net profit margin of 13%. Following the acquisition, China Sky One Medical expects Tianlong to be accretive to earnings, generating revenues of approximately $7.5 million and net profit of approximately 30% in 2008.
Source : www.earthtimes.org
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