Sunstone (Tangshan) Pharmaceutical, a wholly-owned subsidiary of BMP Sunstone Corporation, has signed a non-binding letter of intent to acquire 75 percent of Zhangjiakou Shengda Pharmaceutical for up to RMB 30 million (approximately $4.4 million).
Terms of the acquisition are not yet finalized, as completion is subject to a number of conditions including finalization of due diligence and definitive documentation. The company intends to use the cash available at Sunstone to fund the acquisition and expects to complete the acquisition by the end of the fourth quarter of 2008. The letter of intent also includes a six-month exclusivity clause. Shengda is a manufacturer of pediatric pharmaceuticals, specializing in antibiotic research and development and has approximately 75 product licenses approved by the SFDA in China.