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Beilu Pharmaceutical Officially Acquires Tianyuan Pharmaceutical, Continues to Advance the Strategic Layout of Traditional Chinese Medicine


In recent days, Beilu Pharmaceutical has disclosed the "Announcement on the Acquisition of 80% Equity Interest in Chengde Tianyuan Pharmaceutical Co., Ltd.".

The Acquisition Is Progressing Smoothly, And the Agreement Has Been Formally Signed

Following the company's announcement on February 29 of its intention to acquire 80% of the equity of Chengde Tianyuan Pharmaceutical Co., Ltd., after more than a month of auditing, evaluation, and negotiation, Beilu Pharmaceutical has completed the preliminary preparations for this equity acquisition and the Board of Directors' review procedures. On April 15, an "Equity Transfer Agreement" was officially signed with Jin'an Guoji and Tianyuan Pharmaceutical, among others, in Beijing.

The transaction price for the acquisition of 80% equity in Tianyuan Pharmaceutical is RMB 2,020 million. Upon completion of this transaction, the company will gain control of Tianyuan Pharmaceutical and will include it within the consolidated scope of the company's financial statements.

Rapid expansion of product line, driven by "Chemical + Chinese Medicine" dual engines

After the completion of the Tianyuan Pharmaceutical acquisition, the company's strategy of a dual drive by "Chemical + Chinese Medicine" has officially taken off. In addition to Beilu's exclusive, original research anti-anxiety pure Chinese medicine preparation Jiuwei Zhenxin Granules, the company will add 58 Chinese medicine approvals, including: 44 national medical insurance varieties, 18 national essential drug varieties, and 41 OTC varieties, involving multiple fields such as heat-clearing and detoxifying, gastrointestinal, common cold, tonic, and blood-activating analgesia.

Following Jiuwei Zhenxin Granules, Beilu Pharmaceutical now owns a second nationally exclusive, national medical insurance variety, Jinlian Hua Granules, which is also a class B OTC product, with revenues approaching 100 million yuan in 2023.

Continued promotion of the strategy of traditional Chinese medicine, "second entrepreneurship" still on the way

Targeting the "Top 100 Chinese Pharmaceutical Manufacturing Enterprises," the board of directors and management of Beilu Pharmaceutical initiated a "second entrepreneurship" at the beginning of 2023. The business model of dual drive by "Chemical + Chinese Medicine" will be the biggest motivator to reinvigorate the company’s potential, leading it back to sustained and stable growth. Therefore, integrating existing resources and advantages, leveraging a broader layout, and enhancing the growth and profitability of the traditional Chinese medicine sector to lay the foundation for future development are of utmost importance for the company's growth.

Although Beilu Pharmaceutical is a professional contrast agent supplier, it has also had an early layout in the field of traditional Chinese medicine. Jiuwei Zhenxin Granules are an exclusive original research and a national medical insurance variety. After many years of market promotion, the product's market share and brand influence have significantly improved.

With the initiation of the construction of the fourth production base in Bozhou, Anhui Province, and the advancement of the acquisition of Tianyuan Pharmaceutical, the company's layout in the traditional Chinese medicine sector is more transparent, and the prospects are clearer. Promptly completing the acquisition and handover of Tianyuan Pharmaceutical, quickly integrating Tianyuan Pharmaceutical into the company's group operation system, and empowering through production, marketing, management, finance, and other aspects to achieve complementary advantages and rapid development will be the company's next focus and the main approach to creating the company's "second growth curve".

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