March 10, 2008
Symbollon To Purchase Chinese Co. For $1.5M
By Matthew L. Brown
Framingham's Symbollon Pharmaceuticals Inc. said it plans to acquire Chinese pharmaceutical company Xi'an Maidefa Pharmaceutical Co. Ltd. (Medpharm) for $1.5 million.
Medpharm was founded by Yongjun Duan, former director of research and development of Symbollon. Symbollon said it hoped to get access to low-cost manufacturing for new products by establishing a presence in China. The Medpharm acquisition should also provide revenue to the company and access to the Chinese market for Symbollon's products, the company said.
Upon closing of the acquisition Duan will become Symbollon's vice president of Asian Operations overseeing Medpharm.
Symbollon will acquire approximately 64 percent of the company in a stock swap for Symbollon shares and acquire an option to purchase the remainder of the company for cash. The deal is expected to close in April.
Symbollon develops molecular iodine treatments for women's health and antimicrobial uses.
Medpharm was founded by Yongjun Duan, former director of research and development of Symbollon. Symbollon said it hoped to get access to low-cost manufacturing for new products by establishing a presence in China. The Medpharm acquisition should also provide revenue to the company and access to the Chinese market for Symbollon's products, the company said.
Upon closing of the acquisition Duan will become Symbollon's vice president of Asian Operations overseeing Medpharm.
Symbollon will acquire approximately 64 percent of the company in a stock swap for Symbollon shares and acquire an option to purchase the remainder of the company for cash. The deal is expected to close in April.
Symbollon develops molecular iodine treatments for women's health and antimicrobial uses.
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