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Dr Liu Zhongyi, CEO of Lotus Pharmaceuticals, said, "We have targeted the acquisition of a Beijing company that is a major drug supplier to 99 percent of the 'Triple A' hospitals in Beijing (the highest grade hospitals in China), and to 90 percent of the 'Double A' hospitals in Beijing. These dominant market positions are valuable to Lotus to market its current drug products as well as reselling new drugs from overseas pharmaceutical companies. If completed, this acquisition could add about $100 million to Lotus's annual revenues."
Lotus is taking the inorganic path to growth, besides the above, the company is also eyeing a pharmaceutical manufacturing and marketing company in South China. This company had revenues of about $9 million last year, with a 20 percent profit margin. With this acquisition, Lotus can get access to the company's 30 new drugs approved by SFDA, which have a very strong market prospect.
"With appropriate financing, our strategy is that, by acquiring these two companies, Lotus will establish itself as one of the major pharmaceutical companies with much expanded marketing channels and a good range of products, plus a superb R&D capability. The revenue expansion comes from selling a range of both high turn-around products and new and effective drugs through the much-expanded marketing channels," added Dr Liu.
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