Biostar to acquire Chinese firm Shaanxi Weinan for $9.6 million

USA-based Biostar Pharmaceuticals (Nasdaq GM: BSPM) announced that its wholly owned subsidiary, Shaanxi Aoxing Pharmaceutical, has entered into a share transfer agreement to acquire Shaanxi Weinan Huaren Pharmaceuticals. The aggregate purchase price is RMB 61 million renminbi (around $9.62million), all cash and payable in several tranches.

Shaanxi Weinan owns approvals and permits for a portfolio of 86 drugs and one health product, all of which, following the completion of this acquisition, will be added to the company's current drug portfolio. The company anticipates completing this acquisition on or before October 31, after all the closing conditions are met

Ronghua Wang, Biostar’s chairman and chief executive, noted: "The Shaanxi Weinan's portfolio of 86 drugs and one heath product, does not, for the most part, overlap with our current product line. This acquisition should enable us to further increase our market share in the 25 provinces where we currently distribute and expand into the remaining provinces. Upon closing, we will start marketing many of these products using our extensive sales network, which covers 25 provinces and over 11,000 rural medical sales outlets. This acquisition is expected to be accretive to earnings in 2012."