Beijing Med-Pharm to Acquire Wanwei Corporation
First-Ever Acquisition of a Chinese Pharmaceutical Distribution Firm by a U.S. Corporation, Now Permitted After Dec. 11, 2004 Change In Chinese Law
Beijing Med-Pharm announces an agreement to aquire the Wanwei Corporation, a pharmaceutical distributor in Beijing, China. The addition of Wanwei means that Beijing Med-Pharm (OTC:BB BJGP) will be able to provide distribution services to pharmaceutical companies interested in selling their products into China, as well as the services that Beijing Med-Pharm already provides- pre-registration, registration, sales, and marketing of pharmaceutical products.
COVENTRY, CT, December 16, 2004 - Beijing Med-Pharm (BJGP.PK) today announced that it has signed an agreement to purchase 100% of the Wanwei Corporation from the Beijing Wanhui Pharmaceutical Group and one other shareholder. The transaction is subject to a number of conditions including receipt of regulatory approval and is expected to close during the first quarter of 2005.
The Wanwei Corporation is a pharmaceutical distribution enterprise with operations in Beijing, China, a municipality of 14 million residents. Wanwei distributes to over 90% of Beijing's hospitals, serving half of Beijing's 485 hospitals directly and servicing the bulk of the remainder through 50 tier two distribution entities. The company distributes in excess of 1000 drugs and had annual sales in 2003 of $18,600,000.
The acquisition of Wanwei Corporation by Beijing Med-Pharm, a U.S. Corporation, is made possible by a change in Chinese law enacted December 11, 2004. The People's Republic of China is initiating many economic reforms to comply with the World Trade Organization (WTO) and this specific change enables a foreign-controlled entity to own Chinese pharmaceutical distribution enterprises. The agreement between Beijing Med-Pharm and Wanwei is a historic event, the first-ever entered into under the new legislation.
"This is a tremendous medical and business opportunity," says David Gao, CEO of Beijing Med-Pharm.
"Once the transaction is consummated, we will add distribution assets in Beijing to our nationwide sales and marketing operations. Together, we expect to bring health benefits to a record number of Chinese citizens through a single unified structure."
Beijing Med-Pharm already offers pre-registration, registration, sales, and marketing of pharmaceuticals into the Chinese marketplace. The addition of distributor Wanwei will enable Beijing Med-Pharm to offer an end-to-end solution to non-Chinese companies wishing to sell their pharmaceutical products into China.
"For years, western companies have faced difficulties in penetrating the vast and growing Chinese pharmaceutical market," says Martyn Greenacre, Chairman of Beijing Med-Pharm.
"Upon completion of the Wanwei acquisition, Beijing Med-Pharm will serve as a single company able to provide a complete range of services to pharmaceutical companies entering this market."
For further information please contact
+1 (917) 686 3979
Amphion Innovations plc
Josh Berkman, Media Relations
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About Beijing Med-Pharm
Beijing Med-Pharm is a U.S.-managed company offering an end-to-end solution to western pharmaceutical companies interested in selling their products into the Chinese marketplace. Our one-stop approach offers a single entity able to pre-register and register pharmaceuticals for sale in the People's Republic of China and supply sales, marketing, and distribution services for pharmaceutical products throughout the Chinese market.
On the web: www.beijingmedpharm.com
About Amphion Innovations plc
Amphion Innovations plc recently listed on the AIM Exchange in London under the symbol AMP.L. Amphion's business is the formation, financing, management, and development of life science and technology companies, working in partnership with corporations, governments, universities, and entrepreneurs seeking to commercialize their intellectual property.
On the web: www.amphionplc.com
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the completion of the acquisition of Wanwei Corporation and Beijing Med-Pharm's expectations regarding the effect of the acquisition of Wanwei Corporation on Beijing Med-Pharm's business and its opportunities in the Chinese pharmaceutical market. Forward-looking statements provide Beijing Med-Pharm's current expectations or forecasts of future events. Beijing Med-Pharm's performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, and due to risks and uncertainties associated with these conditions, with completing the acquisition of Wanwei Corporation, with integrating the Wanwei business and with operating, financing and growing Beijing Med-Pharm's business. Given these risks and uncertainties, any or all of these forward- looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Beijing Med-Pharm undertakes no obligation to update publicly any forward-looking statement.