China Resources Pharmaceutical Group Ltd. plans to acquire a controlling stake in the Jiangzhong Group as part of a proposed project to develop the pharmaceutical industry in China's Jiangxi province.

The company is in talks with the Jiangxi government to develop a "long-term strategic cooperation relationship" to promote the pharma sector in the province.

Terms of the potential deal were not disclosed, and remain to be discussed.

Jiangzhong Group, which owns 43.03% of Jiangzhong Pharmaceutical Co. Ltd., specializes in traditional Chinese medicine.