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Yunnan Baiyao Acquires Two Small Pharmas

publication date: Nov 29, 2007

Yunnan Baiyao Group Co., Ltd. will buy two smaller pharmaceutical companies for a total of 50 million RMB ($6.8 million). Yunnan will pay 37 million RMB ($5 million) for Kunming Xingzhong Pharmaceutical Co. and 13 million RMB ($1.8 million) for Kunming Yunjian Pharmaceutical Co. The reason for the purchase seems to be the added production capacity the acquisitions would bring, because the ongoing business of each company adds only an extremely small fraction onto the business of Yunnan Baiyao, which has a market cap of $2 billion.  More details...

Stock Symbol: (SZSE: 000538)

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