Tongjitang Chinese Medicines (TCM) has said it has agreed to buy Qinghai Pulante Pharmaceutical, a privately owned plant-based pharmaceutical company.
TCM will buy the company in cash with an initial payment of about RMB 25.5 million ($3.61 million). Tongjitang will make additional payments over the next three years based on Pulante's financial and operational performance, TCM said in a prepared release.
Pulante, based in Xining, Qinghai province, develops, manufactures, markets, and distributes SFDA-approved Tibetan medicines in China.
Pulante makes Chongcao Qingfei Capsules, a popular OTC drug used to treat respiratory diseases, and Chronic Obstructive Pulmonary Disease or COPD, a common disease among more than 300 million Chinese smokers.
The transaction is subject to customary closing conditions and applicable regulatory approvals.