Gansu Duyiwei Biological Pharma (SHE: 002219) acquired Sichuan Huaji pharma with $16.6 million to enhance its capability in traditional Chinese Medicine extraction.
In 2012, Sichuan Huaji Pharma reported revenue of only $2.4 million and profit of $210,000, making the price seem very high relative to the company's financial performance. Sichuan Huaji manufactures extraction devices for decocting TCM raw ingredients from plants.
