BEIJING MED-PHARM TO ACQUIRE SHANGHAI RONGHENG PHARMA

Beijing Med-Pharm, a pharmaceutical marketing and distribution firm, announced that it has signed a definitive agreement to purchase a majority interest in Shanghai Rongheng Pharmaceutical. The transaction is subject to a number of conditions, including Chinese government approval, and is expected to close by the end of the second quarter.

Shanghai Rongheng Pharmaceutical is a pharmaceutical distribution enterprise with operations in Shanghai, China. The company distributes more than 400 products to roughly 250 hospitals, generating annual revenues of $12 million in 2006, according to Beijing Med-Pharm. Under the terms of the agreements, Beijing Med-Pharm will acquire a 70 percent stake in the company.

"When we complete this transaction, our second significant acquisition in China, Rongheng will become a key component of our unique proprietary distribution network, complementing our current operations in Beijing and anticipated expansion to Guangdong province through the Alliance Boots joint venture," David Gao, CEO of Beijing Med-Pharm, said. "This is another important step toward our objective to have truly national distribution capabilities in China for our partners and our own products."