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Sihuan Pharmaceutical Holdings to Sell Equity Interest in Chinese Pharmaceutical Production Company
Practices
A wholly-owned subsidiary of Sihuan Pharmaceutical Holdings Group Ltd. (Sihuan), a Morgan Stanley Private Equity Asia portfolio company, entered into an equity transfer agreement on July 18 to sell 50 percent equity interest in Vinise Pharmaceutical Ltd. (Vinise), for a consideration of RMB 637.5 million (approximately US$98 million) to Shandong Buchang Pharmaceutical Co., Ltd. (Buchang). Buchang is one of the leading pharmaceutical companies in the PRC and is principally engaged in the research, production and sale of pharmaceutical products, including cardio-cerebral vascular (CCV) drugs and traditional Chinese medicines. Vinise is principally engaged in the production and sale of pharmaceutical products, including traditional Chinese medicines.
Vinise was originally acquired by Sihuan through its acquisition of Smart Baskets on June 27, 2011, and Paul, Weiss also represented Sihuan in the acquisition. To increase market demand for traditional Chinese medicines for CCV diseases and to reduce Sihuan's risks in entering into new markets of traditional Chinese medicines, Sihuan is cooperating with Buchang to leverage Buchang's established manufacturing capability of traditional Chinese medicines, and its extensive sales network of pharmaceutical products in China, for the mutual benefit of both companies.
Paul, Weiss acted as lead counsel to Sihuan on this transaction. The Paul, Weiss team includes corporate partner John E. Lange and counsel Gary Li.