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HONG KONG, Oct 31, 2016 - (ACN Newswire) - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Group"; Stock Code: 2633), a leading company engaged in the research, development, production, marketing and sale of generic drugs and proprietary Chinese medicines and the largest generic drug company in Hong Kong, today announces the completion of the acquisition of Cawah Holdings Limited ("Cawah Holdings") and its subsidiary namely, Medipharma Limited ("Medipharma") which is a reputable generic drug manufacturer in Hong Kong, at a total consideration of HK$100,000,000.
Medipharma is principally engaged in the manufacturing and sale of generic drugs in Hong Kong. With a decent market share in both the public and private sectors in the Hong Kong generic drug market, Cawah Holdings and its subsidiary Medipharma recorded an unaudited net profit after taxation and extraordinary items for the financial year ended 31 December 2015 and for the eight months ended 31 August 2016 of HK$10,013,000 and HK$ 9,457,000, respectively.
Upon completion of the acquisition, Cawah Holdings and Medipharma will become indirect wholly-owned subsidiaries of the Group and the financial results will be consolidated.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma said, "Riding on our strategic plan to drive sustainable business growth and generate impactful synergies through targeted mergers and acquisitions, I am pleased to announce the completion of this meaningful acquisition deal. The products portfolio of Medipharma, is highly complementary to that of the Group, thus providing us with an avenue to achieve sustainable growth and earnings visibility."
"Through the acquisition, we will further deepen our penetration in both public and private sectors, as well as attaining greater diversity in terms of product offerings. Such efforts will enable us to further consolidate Jacobson Pharma's leadership position in the generic drug market in Hong Kong. Going forward, we will continue to maximize the growth momentum by unlocking the full value of our acquisitions."
The Consideration for the Acquisition is HK$100,000,000, of which HK$10,000,000 is allocated as consideration for the Operating Assets; and HK$90,000,000 is allocated as consideration for the Sale of Shares. The Consideration will be funded by internal resources of the Group and bank borrowings.
About Jacobson Pharma Corporation Limited
Jacobson Pharma is the largest generic drug company in Hong Kong with over 30% share of the total generic drug market for each year since 2012 according to Frost & Sullivan. The Group's proprietary Chinese medicines, notable ones being Po Chai Pills and Tong Tai Chung Woodlok Oil are widely carried in the market. For more details about Jacobson Pharma, please visit the Group's website: http://www.jacobsonpharma.com
For media enquiries, please contact:
Strategic Financial Relations Limited
Vicky Lee Tel: +852 2864 4834 Email: vicky.lee@sprg.com.hk
Angela Ng Tel: +852 2864 4855 Email: angela.ng@sprg.com.hk
Angel Li Tel: +852 2864 4859 Email: angelok.li@sprg.com.hk
Fax: +852 2527 1196
Topic: Merger & Acquisition
Source: Jacobson Pharma Corporation Limited
Sectors: Daily Finance, Daily News, BioTech
https://www.acnnewswire.com
From the Asia Corporate News Network
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