Beijing Med-Pharm Acquisition Of Beijing Wanwei Pharmaceutical Approved

Plymouth Meeting, PA -- Beijing Med-Pharm Corp. announced that it has received approval from the Ministry of Commerce of the People's Republic of China regarding its previously announced intent to purchase 100% of the equity interests in Beijing Wanwei Pharmaceutical Co., Ltd. from Beijing Wanhui Pharmaceutical Group and one other shareholder.

This is the first acquisition of a Chinese pharmaceutical distribution firm by a U.S. Corporation or other foreign entity to be approved by the Chinese government. In December 2004, the People's Republic of China implemented a legal reform to comply with the World Trade Organization (WTO) that enables a foreign-controlled entity to own a Chinese pharmaceutical distribution enterprise.

Wanwei 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 40 tier two distribution entities. The company distributes in excess of 1,000 drugs and had annual sales in 2004 of $16,700,000.

"This is a tremendous medical and business opportunity," says David Gao, CEO of Beijing Med-Pharm. "Beijing Med-Pharm will add Beijing-based distribution assets to our nationwide sales and marketing operations. Upon the closing of the acquisition, we will provide state-of-the-art medicines to citizens in China through a single unified structure."

Beijing Med-Pharm already offers clinical trial management, 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.

"Western pharma companies have long faced difficulties penetrating the large and quickly-growing Chinese pharmaceutical market," says Martyn Greenacre, Chairman of Beijing Med-Pharm. "Beijing Med-Pharm can now provide a complete range of services to pharmaceutical companies wishing to enter this market."

SOURCE: Beijing Med-Pharm