Healthcare firm China Medicine Corporation said that its board of directors authorized a stock repurchase program. The program authorizes a buyback of the company's common stock up to a value of $2 million.

The authorization is valid through July 2011. The program utilizes funds currently held in the escrow account pursuant to the company's agreement with its principal shareholder, OEP CHME Holdings, an affiliate of One Equity Partners, the private equity arm of JP Morgan, dated January 28, 2010.

Mr Senshan Yang, Chairman and CEO of China Medicine Corporation said, "We have the fundamental strength to pursue a variety of opportunities with our cash, and today's authorization is an appropriate and strategic decision that brings us additional flexibility to leverage our strong balance sheet. We are committed to enhancing shareholder value, and we have confidence in our long-term growth plan to expand the Company's product portfolio and geographical footprint in China."

The company release noted that the repurchased stock will be canceled and returned to the company's authorized but unissued common stock to be used for acquisitions and other valid corporate purposes.