Simcere Pharmaceutical Group, a manufacturer of anti-cancer medication Endu, said it agreed to buy a 51% stake in Boda Pharmaceutical Co., Ltd for about $14.80 million or RMB111 million in cash. Boda is a manufacturer of injectable stroke management medication.
The acquisition, which is Simcere's first since its IPO in April 2007, is expected to strengthen the company's position in the Chinese stroke management market. Following the acquisition, Simcere, together with Boda will own 100% of the market share of the stroke treatment injection edaravone in China, the company noted.
Commenting on the purchase, Chengjun Duan, chairman and president of Boda said, "We are delighted to join hands with Simcere, a leading player in China's pharmaceutical industry. We will benefit from Simcere's brand name, superior marketing expertise and strong R&D support." Mr. Deng will retain his current position at Boda."
Simcere said that it planning to pursue acquisitions that will expand its first-to-market pipeline and its innovative new drug business, while strengthening its position in selected therapeutic areas.
SCR is currently trading at $15.56, up $0.06 or 0.32%, on a volume of 8,100 shares.