Introduce Innovative Medical Device into Pharmaceutical Market in China - Grasp the Niche Market of Cardiovascular Interventional Medical Devices
Hong Kong, 22 April 2015
China Grand Pharmaceutical and Healthcare Holdings Limited ("China Grand Pharm") (512-HK) and CDB Equipment Manufacturing Investment Fund Co. Ltd are delighted to announce the pursuant to the acquisition of Cardionovum GmbH, a German based company. Cardionovum engages in the development, manufacturing and distribution of advanced interventional cardiovascular interventional medical devices such as coronary drug eluting stent (DES) and drug-eluting balloons (DEB). Cardionovum's leading products RESTORE(R) and XLIMUS(R) have been developed for the treatment of coronary artery disease (CAD), LEGFLOW(R) has been developed for the treatment of in peripheral artery disease (PAD) and APERTO(R) for the treatment of stenosis in hemodialysis shunts. All products show outstanding clinical results in their designated indications. Cardionovum's products are currently distributed in over 40 countries globally, and are positively viewed by medical professionals.
China Grand Pharm and Shanghai Muyi Investment Management Partnership (Limited Partnership), a limited liability partnership established in the PRC and an Independent Third Party, majority interest of which owned by CDB Equipment manufacturing Investment Fund Co. Ltd.) will establish the Hong Kong JV. The Hong Kong JV will be owned 33.3% by China Grand Pharm and 66.7% by Shanghai Muyi Investment Management Partnership (Limited Parnership) respectively. The Hong Kong JV will acquire 73% of the Cardionovum from Vendors for a total consideration of approximately US$73.0 million (equivalent to approximately HK$ 565.9 million). The Hong Kong JV will be the Global Headquarter of Cardionovum, which will be responsible for Cardionovum;s global business operations, including product research & development, manufacturing, marketing of innovative products and the formation of the PRC JV, etc.
The participation of Hong Kong JV in global operation will become a solid foundation for China Grand Pharm to integrate advanced technology and step into the global market. China Grand Pharm intends to enter the growing Chinese niche market of interventional cardiovascular medical devices. By taking advantages of this transaction China Grand Pharm will bring the next-generation DEBs to the market, become a pioneer of the interventional cardiovascular medical devices field, and looking forward to execute on the ambitions to become one of the leading innovation pharmaceutical enterprises in China.
China Grand Pharm is delighted to cooperate with CDB Equipment Manufacturing Investment Fund Co. Ltd on the investment in Cardionovum. As one of the fast-growing pharmaceutical enterprises in China, on this strategic cooperation, apart from capital requirements, this cooperation will further strengthen the reputation and creditability of China Grand Pharm. Also, entering this transaction can help to broaden the current core product pools by the newly advanced technology products and to grasp the opportunities of adding products with multi-million revenue potential into the product pool. In addition, this strategic cooperation is the first time which China Grand Pharm spans footprint on international market and is to be fully prepared for the future more sizable overseas developments.
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About China Grand Pharmaceutical and Healthcare Holdings Limited
China Grand Pharmaceutical and Healthcare Holdings Limited is an investment holding company with subsidiaries mainly engaged in research and development, manufacture and sales of pharmaceutical preparations, pharmaceutical intermediates, specialized raw materials and healthcare products. Core products include pharmaceutical preparations of cerebro-cardiovascular, ENT such as ophthalmic medicines, etc., steroid hormones as pharmaceutical intermediates and Taurine as healthcare products. Tirofiban of cardiovascular medicines and ophthalmic brand Hubei EBE are the key products and brands of China Grand Pharm. They have a certain and influence status in China pharmaceutical market.
2013 is a turning point for China Grand Pharm, which has completed the construction and relocation of all newly production plants which locate at Hubei and Jiangsu provinces, new plants received new version of GMP certifications and implemented new production technologies into new productionlines, new production technologies are already applied to production lines From 2014 and onwards, China Grand Pharm entered the first step into innovative medicines and medical devices market, believe this strategy will provide solid foundation for the long-term stable and fast growth of China Grand Pharm.
About CDB Equipment Manufacturing Investment Fund Co. Ltd
CDB Equipment Manufacturing Investment Fund is managed by CDB Root-Well Industrial Investment Fund Management Co., Ltd., and is one of the state's important measures to reinvigorate manufacturing industry with a total capital of RMB 20billion, RMB 4.3 billion of which has been raised for the first phase. The goal of the Funds is to grasp the opportunities of economic restructuring and industrial upgrading to gain long-term and steady returns on investments; providing comprehensive capital support and post investment value-added services to facilitate the transition, growth and expansion of target companies.
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Contact Information
China Grand Pharmaceutical and Healthcare Holdings Limited:
Miss Olivia Hung Tel: +852 2866 3718 Email: olivia.hung@chinagrandpharm.com
