Drug company to acquire controlling stake

China Pharmaceutical Group Ltd, which derives almost half of its sales from antibiotics, will buy a maker of finished drugs from its controlling shareholder for HK$8.98 billion ($1.2 billion) worth of new stock and convertible bonds.

The purchase of Robust Sun Holdings Ltd will reduce the company's reliance on drug intermediaries, bulk antibiotics and vitamin C, which now account for 66 percent of its sales. There is now an oversupply of those products, which tend to be selling at relatively low prices, according to a filing to Hong Kong's stock exchange on Tuesday.

Agencies - China Daily