BMP Sunstone Acquires Unique Constipation Drug

| About: BMP Sunstone (BJGP)

BMP Sunstone Corporation (BJGP) has agreed to acquire rights to the Runchang capsule, a liquid-filled hard capsule (LFHC), used to treat constipation. BMP Sunstone purchased the product from Darentang Pharmaceutical, a subsidiary of Tianjin Zhongxin Pharmaceutical Group Corporation Limited (SSE: 600329). The purchase, whose price was not disclosed, will include the LFHC filling and sealing production line and related LFHC technology.

Upon completion of the transaction, BMP Sunstone will become the only company currently manufacturing LFHC capsules in China. BMP Sunstone plans to start promoting the Runchang capsule in China late in 2009.

The capsule delivers its natural, plant-based medicine specifically to the colon area via its LFHC mechanism. BMP Sunstone said that it would use targeted-release LFHC technology with other of its existing products. The company added that the Runchang capsule is a strategic fit because BMP focuses on women’s health and women are the primary market for constipation treatments.

BMP Sunstone put a value of 7 billion RMB ($1 billion) on the constipation market, a market that is growing by as much as 10% per year. It did not discuss any revenue history for Runchang capsules.

Disclosure: none.