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Chengdu Rongsheng Pharmaceutical to acquire stake in Sinopharm Group unit

Chengdu Rongsheng Pharmaceutical Co. Ltd. has reached an agreement with Sinopharm Group Guangdong Medi-World Pharmaceutical Co. to acquire a remaining 20% equity interest in Sinopharm Group Guizhou Blood Products Co. Ltd. for HK$102.4 million.

Chengdu Rongsheng Pharmaceutical is an indirect subsidiary of China National Pharmaceutical Group Corp., which is also the holding company of Sinopharm Hong Kong and related units. Chengdu Rongsheng Pharmaceutical develops protein-based therapies in the areas of immunotherapy and critical care.

Sinopharm Group Guangdong Medi-World Pharmaceutical acquired a 51% equity interest in Sinopharm Group Guizhou Blood in January 2013, later selling 31% of its stake for about HK$157.6 million. Sinopharm Group Guizhou Blood develops and sells plasma-based biopharmaceutical products in China.

The deal is expected to close by year-end subject to required approvals.