Simcere Pharmaceutical Group (Simcere), a leading manufacturer and supplier of branded generic pharmaceuticals and manufacturer of the patented anti-cancer biotech product ‘Endu’ in China, has acquired 100 percent of Master Luck Corporation, which holds 85.7 percent of Nanjing Tung Chit Pharmaceutical Co., (Tung Chit), for a total cash consideration of RMB32.6 million ($4.4 million).
Tung Chit is a fast-growing manufacturer and supplier of anti-cancer drugs in China. Its leading product is a nedaplatin injection, trademarked as Jiebaisu, a first-to-market platinum based chemotherapeutic drug approved for the treatment of a wide range of solid tumors, including head-and-neck cancer, small cell and non-small cell lung cancer and esophageal cancer. Since its launch, Jiebaisu has been used by a number of major Chinese hospitals, specializing in cancer treatment, in many provinces across China.
Through this transaction, Simcere acquires the market leading chemotherapeutic drug Jiebaisu and enriches its anti-cancer product portfolio. In addition, it has acquired a specialized and high GMP standard chemotherapy production facility. Simcere will combine Tung Chit's anti-cancer chemotherapeutic R&D capabilities with Endu's post-launch research team to explore other potential chemotherapeutic combo-treatments as an alternative to Endu's existing combination with vinorelbine plus cisplatin. Simcere will also leverage its existing well-established Endu's marketing resources and network to increase Jiebaisu's hospital penetration, market share and sales revenue to create additional value to its shareholders.
''As a new generation, broad spectrum and highly effective platinum based anti-cancer drug, nedaplatin has been recognized by the industry to have better efficacy but less side-effects than cisplatin and carboplatin. We believe nedaplatin has strong growth prospects in China. This transaction enriches our anti-cancer product portfolio and strengthens our leading position in oncology so that we can better serve our patients,'' said Mr. Jinsheng Ren, Chairman, CEO and founder of Simcere Pharmaceutical Group.
According to the China Hospital Drug Information, Jiebaisu's share of the nedaplatin market in China was over 80 percent in 2006. Being a new generation, broad spectrum platinum based chemotherapeutic drug, nedaplatin is expected to have significant growth potential in China.