Tianjin Pharmaceutical raises stake in pharma manufacturing company

TIANJIN Pharmaceutical Da Ren Tang Group Corp on Friday (Sep 9) said it was subscribing to up to 5.4 million new shares in NewScen Coast Bio-Pharmaceutical, a pharmaceutical manufacturing company based in China, for up to 43.2 million yuan (S$8.7 million) in cash.

This was on top of a previously announced agreement to purchase 51.6 million yuan of shares from 2 NewScen Coast shareholders. When completed, the secondary transaction will make Tianjin Pharmaceutical the controlling shareholder of NewScen Coast, with a stake of 47.85 per cent.

Tianjin Pharmaceutical’s additional subscription of new shares in NewScen Coast will then bump up its stake to 56.65 per cent.

Tianjin Pharmaceutical said NewScen Coast is in the in vitro diagnostics segment of the pharmaceutical industry, which has been supported by a number of national policies and has good development prospects. (In vitro diagnostics are tests done on samples such as blood or tissue that have been taken from the human body.)

The counter closed at US$1.03 on Friday, up US$0.02 or 1.98 per cent.