Simcere Gains Majority Control of Vaccine Subsidiary

Simcere Pharmaceutical Group (NYSE: SCR), a China company that makes branded generic and proprietary pharmaceuticals, now controls a majority 50.77% of its vaccine subsidiary, Jiangsu Yanshen Biological Technology Stock Co., Ltd. Simcere bought its original 37.5% stake in Jiangsu Yanshen in May 2009.

Thursday, the company announced it has acquired 74.49% of ChinaVax, a Cayman Islands company whose sole asset is a 13.27% stake in Jiangsu Yanshen. Financial details of the new transaction were not disclosed.

Located in Changzhou, Jiangsu Province, Jiangsu Yanshen develops and manufactures vaccines. In mid-September, Jiangsu Yanshen received SFDA approval for its swine flu (H1N1) vaccine. Subsequently, the company received orders for 6.3 million doses of the vaccine from China's Ministry of Industry and Information Technology.

Disclosure: none.

Comments

[huangthomas:]

The most urgent thing for Chinese vaccine makers to do is to receive international approval and acceptance of their vaccine. We have shortage of Type A (H1N1) vaccine in the United States, but the Chinese vaccines are not acceptable. Next vaccine could be H5N1 avian influenza(bird flue) vaccine, which Chinese vaccine manufactures have experience far ahead of other vaccine makers.

Oct 30 08:18 PM