By Fineline Cube 
China-based Tellgen Corporation (SHE: 300642) announced plans to acquire an 82.00% stake in Wuhan HealthCare Biotechnology Co., Ltd. for a total consideration of RMB 328 million through a three-step transaction. In the initial phase, Tellgen will acquire a 72.8630% stake for RMB 291 million, at which point Wuhan HealthCare Biotech will become a controlled subsidiary and be consolidated into Tellgen’s financial statements.
Transaction Overview
The acquisition is designed to complement Tellgen’s portfolio in the molecular pathology field and enhance its competitive edge in oncology diagnostics. Wuhan HealthCare Biotech specializes in Fluorescence In Situ Hybridization (FISH) and PCR molecular diagnostic technologies. The company has achieved rapid development of FISH reagents and automated detection equipment. Its product portfolio, primarily comprising FISH and PCR categories, has secured multiple Class III medical device registration certificates approved by the National Medical Products Administration (NMPA).
Financial Highlights
Wuhan HealthCare Biotech reported an operating revenue of RMB 97.3 million and a net profit of RMB 17 million for the fiscal year 2024. The agreement includes a performance commitment requiring Wuhan HealthCare Biotech to achieve a total net profit of no less than RMB 91.5 million from 2025 to 2027. The agreement also specifies targets for accounts receivable collection. In the event of unmet commitments, the transferor will be required to provide share compensation.-Fineline Info & Tech