Fosun Pharma Out To Acquire Tongjitang Chinese Medicines
This article was originally published in PharmAsia News
Executive Summary
Fosun Pharma recently announced that its subsidiary Fosun Enterprises has bought more shares in Tongjitang Chinese Medicines (PharmAsia News, Nov. 24, 2008). This represents Fosun Enterprises' eighth purchase of Tongjitang since last November. As of Jan. 26, the firm has acquired a total of 4.45 million American Depository Shares in Tongjitang with $14.08 million, which accounts for 13.18 percent of the total ordinary shares issued by the latter. Fosun Pharma still insists the move is for investment purposes, while Tongjitang claims ignorance. However, industry analysts speculate that Fosun Pharma is likely to force Tongjitang through acquisition to delist from the U.S. market and return to A-share; the former will then list its TCM assets through both parties' collaboration. (Click here for more - Chinese Language)