February 26, 2008

China's Shandong Lukang Pharma to acquire Shandong Minsheng's pharmaceutical assets

China's Shandong Lukang Pharmaceutical Co. Ltd. announced yesterday that it will acquire pharmaceutical assets from Shandong Minsheng for RMB19 million (US$2.65 million), to enrich its veterinary products.

According to Shandong Lukang Pharma, the company will acquire 76 percent of shares in Shandong Minsheng.

Shandong Minsheng is a subsidiary of Shandong Minsheng Coal Chemistry and concentrates on the production of Salinomycin Sodium Premix, a feed additive.

The annual sales of Shandong Minsheng Coal Chemistry reached RMB39.7 million (US$5.54 million) last year.

Shandong Lukang Pharma is one of China's biggest antibiotic production bases.

For the first half of 2007, income generated from its veterinary pharmaceutical products reached RMB69.98 million (US$9.77 million), accounting for 10 percent of its total sales revenues.