January 10 -- Shanghai Pharmaceuticals Holding (601607.SH,2607.HK) said wholly-controlled subsidiary, Shanghai Zhongxi Sunve Pharmaceutical, acquired a 51 percent stake in Shanghai Jinhe Biotechnology, reports China Business News, citing a company filing.

According to a securities representative at Shanghai Pharmaceutical, Lu Di, the company will not disclose the transaction price.

The acquisition was conducted at a low price-earnings ratio, said Lu.

The target company mainly researches, produces and sells botanical raw materials for anti-cancer drugs, and it has a more than 50 percent share of the domestic taxane intermediates market.

Shanghai Pharma predicts the target company will generate sales revenue of 93.75 million yuan in 2011.

Lu said the businesses of both companies are complementary.