Simcere Pharma Ups Stake in Boda Pharma to 90%

| About: Simcere Pharmaceutical (SCR)

Simcere Pharmaceutical (NYSE: SCR) announced a transaction that will increase its ownership of Boda Pharma to 90%. Boda makes Yidasheng, an injectable edaravone drug for management of stroke. Yidasheng complements Bicun, another injectable edaravone drug that is Simcere’s mainstay product.

Simcere purchased its original 51% stake in Boda in September of 2007, paying $14.8 million. In the latest transaction, Simcere acquired 80% of Xiangao Investment Company Ltd, which holds 49% of Boda. The purchase price was not disclosed.

In 2009, the two edaravone stroke drugs contributed $109.2 million of Simcere’s $271 million of revenue, about 40% of the total. The company did not estimate how the transaction would affect its financial results.

Edaravone is a neuroprotective drug, administered following a stroke to protect the brain during reperfusion (a return of blood supply following stroke). It is an antioxidant that scavenges free radicals, protecting against oxidative stress and apoptosis of neurons.

Disclosure: none.