Fosun Pharma Holds 20 Percent Shares In Tongjitang Chinese Medicines
This article was originally published in PharmAsia News
Executive SummaryAs of June 19, Fosun has purchased a total of 6.765 million American Depository Shares in Tongjitang Chinese Medicines, making it the owner of 20.02 percent ordinary shares issued by the latter. Industry analysts have been speculating that Fosun wanted to force Tongjitang to delist from the U.S. market and consolidate its TCM assets. However, others believe the firm is unlikely to do that due to the substantial amount of time and money needed. Fosun has little revenue contribution from its TCM business although its profit margins from the sector can be as high as 70.4 percent, which explains its interest in Tonjitang. Fosun consistently adheres to its claim that the purchase is simply for investment purposes. (Click here for more - Chinese Language)
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