Sihuan Pharma to acquire fellow Chinese drug firm

China’s Sihuan Pharmaceutical says that its wholly-owned subsidiary Sun Moral International (HK) has entered into an equity acquisition agreement with Ambest Pharmaceutical to acquire the 100% equity interest held by the transferor in Ambest Pharmaceutical (China) Company for a consideration of 1.1 billion renminbi ($160 million). Upon completion of the Share Acquisition, Ambest Pharmaceutical (China) will become a wholly-owned subsidiary of the Company.

Ambest Pharmaceutical (China) is engaged in the manufacturing of large volume injectables, and research, technology transfer and technology services of pharmaceutical products. It currently holds the drug production approvals of monoammonium glycyrrhizinate and cysteine and sodium chloride injection and floium Ginkgo extract and tertram rthypyrazine sodium chloride injection.

Since its $742 million Hong Kong IPO in 2010, Sihuan has been an active participant in China pharma M&A while also developing a robust R&D pipeline. In 2010 it acquired Dupromise Holdings for as much as 2.4 billion renminbi ($360.72 million at then exchange rates).