[ET Net News Agency, 4 September 2017] Sihuan Pharmaceutical (00460) said the Group
will invest in PharmaDax (FoShan) Co., Ltd a subsidiary of the PharmaDax Inc., in phases.
In the first phase, the Group will subscribe for 19.99% equity interests in and
corporate bonds issued by, PharmaDax Foshan at Rmb200 million. Upon satisfaction of
conditions stipulated in the agreements, the Group will make an additional investment of
maximum Rmb200 million and convert the aforementioned corporate bonds into further equity
interests, and will hold a maximum of 51% equity interests in PharmaDax Foshan in
aggregate.
The PharmaDax Foshan owns advanced drug production technique and normative drug quality
control system that meets the United States Food and Drug Administration requirements. It
primarily focuses on the manufacturing of generic drugs with significant market size or
drugs of extended release formulation with challenging formulation design and few
competitors. Through the investment in PharmaDax Foshan, the Group expects to accelerate
its generic drug R&D and enhance the Group's overall competitiveness. (HL)