AMDL Acquires China-Based Drug Distributor

AMDL, Inc. (AMEX: ADL) has signed a letter of intent [LOI] to acquire a China-based drug distributor, Sichuan ZhiTong Pharmaceutical, Ltd. [SZP]. The two companies will retain an independent business valuation company to determine the price.

SZP is a privately-held pharmaceutical distribution company that sells and distributes traditional Chinese medicines, health foods, medical equipment, and generic pharmaceutical products. It has been a distributor for AMDL since Q4 of 2007, distributing the company’s Domperidone anti-emetic product.

At present, SZP sells approximately $100,000 per month of Domperidone, but AMDL expects that increased marketing will take these levels over $200,000 per month in the next 60 days.

SZP will consolidate sales forces with AMDL’s China subsidiary, Jade Pharmaceuticals. SZP will distribute additional AMDL pharmaceutical products including GoodNak, Levofloxicin and Ondansetron. SZP currently employs approximately 80 in-house sales agents.

Disclosure: none.