Shanghai Century Acquisition Corp. has entered an agreement to purchase Sichuan Kelun Pharmaceutical Co. Ltd., a Chinese pharmaceutical firm and producer of intravenous solutions.
Kelun also makes a line of polypropylene intravenous bottles and bags, a break from China's traditional use of glass to dispense IV medications. The Chengdu, China-based firm owns plants in more than eight provinces.
The firm declined to comment on how the deal will affect its operations in China.
Kelun began offering plastic packaging for its IV solutions in 2003, expecting the Chinese market eventually to shift to plastic. Today, nine of the business's 25 production lines are for IV solutions in plastic containers.
In addition to traditional PP bottles and bags, Kelun also has patented an upright PP soft IV bag. Kelun received approval from the Chinese State Food and Drug Administration for the bag and began producing and selling it in 2006. Kelun's creation can be sealed completely to prevent air contamination and positioned standing up during treatment, a convenience feature for medical personnel.
Shanghai Century will be renamed China Kelun Pharmaceutical Corp. Kelun's current board chairman, Gexin Liu, will become chairman of China Kelun.
In a news release, Anthony Kai Yui Lo, chief executive officer of Hong Kong-based Shanghai Century Co., called Kelun a market leader with excellent management and dynamic growth. ``The rapidly expanding China health-care industry ... is attracting increasing government attention and support,'' he said.
In 2006, Kelun and its subsidiaries reported sales of 1.38 billion yuan (US$176.7 million).