Yi Long Pharmaceutical Signs Acquisition of Baixiang Pharmaceutical

Yi Long Pharmaceutical Signs Acquisition of Baixiang Pharmaceutical Yiwei Pharmaceutical announced in March this year that its wholly-owned subsidiary Guizhou Miao Medicine Industrial Co., Ltd. acquired 100% equity of Guizhou Baixiang Pharmaceutical Co., Ltd., and has made substantial progress a few days ago. Yiwu Pharmaceutical announced on the 15th that both parties had signed an equity transfer agreement on June 14th and the transfer price was 500 million yuan, which will have a positive impact on the company's current and future operations and finances.

According to the announcement, Baixiang Pharmaceutical is wholly-owned by Honghai Holdings Co., Ltd. and its main products are as many as more than 20, covering diseases such as oncology, gynecology, andrology, nephrology, cardiovascular, hepatobiliary, digestive, nervous, orthopedics, and colds. . Among them, 9 national medical insurance products, 1 national drug-based product, 4 exclusive products and 3 exclusive dosage forms.

Baixiang Pharmaceutical's Fuyanxiao Capsule, Aiyu Capsule, Zhilin Capsule, and Zhilin Granules are varieties of the company that have independent intellectual property rights and have obtained national utility model patents. Among them, Fuyanxiao capsule, the most important independent product, was selected as the 2012 edition of the National Essential Drug List.

Baixiang Pharmaceutical currently has two production bases that have passed GMP certification, including seven formulations of five formulations including tablets, dripping pills, soft capsules, hard capsules, granules, traditional Chinese medicines, and Chinese herbal medicines. Production capacity of 500 million capsules, 200 million tablets, 15 million granules, 300 million drops of pills and 18 million soft capsules.

The assessment report shows that Baixiang Pharmaceutical's 2012 operating income was 181 million yuan, an increase of 80.2% over the previous year, and net profit was 4.0162 million yuan, an increase of over 3.3 times over the previous year. This time, using the income approach assessment, Baixiang Pharmaceutical's shareholder's total equity value as of December 31, 2012 was approximately 507.6 million yuan, which represented an increase of approximately 500 million yuan compared with the net assets of 8,884,900 yuan. The value-added ratio was 5612.81%.

In the era of "cultivation as the king" in the pharmaceutical industry, scarce varieties are particularly concerned by the market. For this acquisition, Yiwei Pharmaceutical stated that the main products of Baixiang Pharmaceutical are cancer drugs, gynecological drugs, andrology drugs and breast disease drugs, which can expand the company's pharmaceutical sales and enrich the existing product lines; use of the company The marketing network foundation and brand advantage in the primary medical market rely on the advantages of Fu Yan Xiao capsule in the “National Essential Drugs Catalog” exclusive varieties, and quickly approached the market for the base medicine market. This transaction is in line with the strategic development direction of the company and is conducive to enhancing the overall competitiveness of the company. It will have a positive impact on the company's current and future financial status and operating results.

Since 2010, Yisheng Pharmaceutical has refocused its medicine and successively acquired Yunnan Nanxun Pharmaceutical, National Pharmaceutical, and Aide Pharmaceutical, and has acquired part of the equity of Hainan Changan International. This year it acquired Baixiang Pharmaceuticals and its products. The structural layout is being rebuilt.

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