BMP Sunstone Acquires 'Runchang Capsule' and Related LFHC Technology
December 1st, 2008
2008 DEC 1 -- BMP Sunstone Corporation (NASDAQ:BJGP) ("BMP Sunstone" or the "Company") announced that its wholly-owned subsidiary, Sunstone (Tangshan) Pharmaceutical Co., Ltd ("Sunstone"), has signed an agreement to acquire "Runchang capsule," a liquid- filled hard capsule (LFHC) used to treat constipation. Sunstone will also receive the entire LFHC filling and sealing production line, as well as related LFHC technology from Darentang Pharmaceutical, which is a subsidiary of Tianjin Zhongxin Pharmaceutical Group Corporation Limited (SSE: 600329; SGX: TIAN). Upon completion of the transaction, BMP Sunstone will become the only current manufacturer of LFHC capsules in China. The Company plans to start promoting the Runchang capsule in the Chinese market in late 2009.
Zhiqiang Han, President and Chief Operating Officer of BMP Sunstone, commented, "The Runchang capsule is a natural plant-based medicine for the treatment of constipation. Compared with competing products on the market, the capsule specifically delivers the medicine to the colon area through its unique LFHC formulation. In addition, the Runchang capsule fits well into our current therapeutic focus in women's health, as women make up the majority of the demand in constipation market."
David Gao, Chief Executive Officer of BMP Sunstone, concluded, "Besides acquiring an approved product, the acquisition will afford us the sole proprietary ownership of LFHC technology in China. We plan to further utilize the targeted-release technology to our existing products to enhance our competitive position and, ultimately, our market share. We intend to fully leverage our existing channels and sales platform to capitalize on the market demand for constipation products, especially within the areas of women's and children's health."
Mr. Han continued, "As living standards have improved in China, the dietary structure and lifestyles have also evolved and fiber content in the diet has been increasingly replaced by protein. As a result, the incidence of constipation has surged and in 2008, we believe the constipation market in China has grown to more than 7 billion RMB with an annual growth rate of 9%- 10% and approximately 6% of Chinese people, of which 80% are women, suffer from varying degrees of constipation. As a dedicated provider of women's and children's health, Sunstone has successfully established three national brands: Confort (for the treatment of female genital tract infection); Nemei (for the treatment of other female diseases); and Goodbaby (for the treatment of pediatric diseases). The Runchang capsule can utilize our existing channels for women's branded products. We believe the Runchang capsule provides us with a good opportunity to extend our brands and product portfolio."
