China Biopharmaceuticals buys 51% stake in Suzhou Erye Pharmaceuticals

By Ted A. Knutson

Washington, June 14 - China Biopharmaceuticals Holdings, Inc. said it signed an agreement Saturday to buy a 51% stake in Suzhou Erye Pharmaceutical Ltd. Co.

In return, Suzhou's investors will receive $3 million and 3 million shares of China Biopharmaceuticals.

China Biopharmaceuticals said the acquisition will increase its manufacturing capability, noting Suzhou Erye has obtained production certificates for 68 drug items, among which 27 are in production, mainly antibiotics such as injectable cefotaxime sodium, ceftriaxone sodium, amoxicillin and compound amoxicillin.

Sizhou Erye's sales reached RMB 167 million in 2004, with raw material acetylspiramycin per oral taking 15% of domestic market share and cloxacillin sodium taking 80% of the Chinese domestic market, according to China Biopharmaceuticals.

Jiangsu, China-based China Biopharmaceuticals made the announcement in an 8-K filing with the Securities and Exchange Commission.

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