China-based Shandong Saito Bio-Technology Co., Ltd. (SHE: 300583) has announced plans to acquire a 60% stake in fellow Chinese firm Yingu Pharmaceutical Co., Ltd for RMB 458.1 million (USD 62.7 million) in cash. Upon the deal’s closure, Saito will emerge as Yingu’s controlling shareholder, marking a significant strategic move in the biopharmaceutical sector.
Creating Synergistic Effects
The acquisition is poised to enable both firms to complement each other’s strengths and create synergistic effects. Yingu’s advantageous products and robust research and development capabilities will assist Saito in accelerating the development of its pharmaceutical products and expanding its product line continuously.
Enhancing Sales and Production Capabilities
Yingu boasts a comprehensive sales team and nationwide sales channels, which will aid Saito in promoting and selling its biological preparation products more effectively. Furthermore, Yingu’s mature production capacity offers a pilot and commercial scale production platform for Saito’s researched products. In turn, Saito’s leading production capacity for intermediates and raw materials will help stabilize the supply of raw materials for Yingu and expand its production capacity, positioning both companies to seize a larger market share.-Fineline Info & Tech
