Chinese pharma company, BioPharm Asia, has announced that its newly-acquired subsidiary, Beijing Zhihe Ruikang Hospital Management (ZHRK), is negotiating to acquire a controlling interest in Shandong Weifang Municipal Hospital (WFMH).

WFMH, founded in August, 1952, is said to be a comprehensive upper-class hospital with 420 beds located in Shandong province, that is authorized to provide medical service to several surrounding communities, and also conduct certain teaching and research functions.

ZHRK is currently conducting its due diligence, including an audit of WFMH’s financial statements, and once these procedures are completed, the parties will seek to agree upon the portion of WFMH to be acquired, the purchase price and terms of payment. ZHRK is now supervising the due diligence, asset evaluation and auditing. Assuming the parties can agree upon terms, of which there is no guarantee, a closing is anticipated in the fourth quarter.

Mr Shengqun Li, BioPharm’s newly appointed CEO, said, "We believe that ZHRK’s professional medical care management capabilities combined with WFMH’s impressive facilities will result in expanding the hospital’s resources and improving its patient services and care while attaining attractive financial margins. I expect that this transaction will be the first solid step for BioPharm Asia to enter into the health care provider market."