Ossen Innovation is acquired by San Meditech. This company produces a diabetes product for continuous insuline injection. At first sight the product seems great, for the big Chinese market. However it needs to be replaced every 4-5 days and therefore I think it is not better than competing products. It is a joke compared to a similar product of an American company: Their product can be used up to 90 days before it needs to be replaced.
The appraisers for the reverse merger used this American company to determine the value of San Meditech. However they still arrived at a much higher P/B multiple than the American company had when it IPO-ed.
Many big pharma companies have similar products. I do not think this small company can compete with big pharma. It cannot afford to spend as much on research and development.
Moreover the company needs a lot of money to continue its business operations. It is much financially distressed. I expect it will dilute soon after the deal completes.
Disclosure: I am/we are short OSN.