Big News! Beilu Pharmaceutical Acquired Hichi Pharmaceutical to Strengthen the Layout of Contrast Agent APIs

On December 9, 2019, Beilu Pharmaceutical Co., Ltd. (www.beilupharma.com) issued the Outbound Investment Announcement: Shareholders of Beilu Pharmaceuticals and Zhejiang Hichi Pharmaceutical Co., Ltd. had signed the Share Transfer Agreement. Hichi will transfer 1.5 million shares held by a natural person shareholder with its own capital of 18 million yuan; after the transfer is completed, Beilu Pharmaceutical will hold 37.91% of Hichi Pharmaceutical's shares and become the company's controlling shareholder.

Hichi Pharmaceutical (www.hichipharm.com) is a high-tech pharmaceutical enterprise focusing on the R&D, production and sales of contrast media products raw materials. Its main product at this stage is iohexol, the raw material for iohexol preparations. The company is a listed company on the New OTC Market. Its stock abbreviation is Hichi Pharmaceutical, and the stock code is 834402.

As one of the few domestic companies with qualifications for the production of iodine contrast agent raw materials, Hichi Pharmaceutical has a standardized production line of contrast API and an independent research and development system, and it has obtained 2 invention patents. The company uses proprietary technology and production processes to develop and produce iohexol contrast raw materials. It has a good reputation in China and has been selling products overseas for a long time.

Hichi Pharmaceutical is one of the company's main suppliers of iodine contrast agent raw materials. The acquisition of Hichi Pharmaceutical is an important strategic layout for Beilu Pharma to achieve industrial chain integration, which can ensure the supply of iodine contrast agent raw materials. Under the current national procurement background, it is a favorable guarantee for Beilu Pharma to maintain sustained and stable growth.

At the same time, this acquisition will speed up Hichi Pharmaceutical's completion of the commissioning of the iodine contrast agent raw material drug production line in its new plant. According to the plan, it will gradually realize the annual production capacity of 850 tons of iodine contrast agent.