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Jacobson Pharma Announces Acquisition of 70% Interest in Hong Ning Hong
Strategic Move in Advancing Sales Channel for Wider Distribution of its Proprietary Medicine Brands
HONG KONG, Mar 13, 2017 - (ACN Newswire) - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Group"; Stock Code: 2633), a leading company engaged in the research, development, production, marketing and sale of generic drugs and proprietary medicines, announced today that it will acquire 70% interest in Hong Ning Hong Group (comprising "Hong Ling Hong Limited" and its Hong Kong subsidiary), at a total consideration of HK$56 million. When the acquisition is completed, the Hong Ning Hong Group will become an indirect non-wholly owned subsidiary of Jacobson Pharma.
This is a strategic move undertaken by Jacobson Pharma to advance its sales channel and expand its distribution network, and thereupon strengthens its presence and penetration in the OTC market segment. Currently, the Group's OTC drugs and proprietary Chinese medicines are available in a number of Asian markets including Hong Kong, Macau, Singapore, Malaysia, Indonesia and the PRC.
The Hong Ning Hong Group was established in 1992 and has been actively involved in the retail and wholesale of OTC drugs as well as proprietary Chinese medicines in Hong Kong. It has a well-established commercial infra-structure and customer network that can help Jacobson Pharma reach out to its targeted customers in the southern China region. This retail and wholesale platform has significant bearing upon the Group in enhancing both the market coverage and penetration of its proprietary medicines and will help create a high level of synergies through leveraging of the Group's brand management and distribution resources.
Jacobson Pharma has been building an expandable proprietary medicine platform through strategic acquisitions. Its product portfolio now comprises popular household brands including Po Chai Pills, Ho Chai Kung Tji Thung San, Tong Tai Chung Woodlok Oil, Contractubex Scar Gel, Doan's Ointment, Flying Eagle Wood Lok Medicated Oil, Saplingtan, Shiling Oil and Col-gan Tablet.
Mr. Derek Sum, Chairman and Chief Executive Officer of Jacobson Pharma, said, "This acquisition accelerates the growth momentum of the Group's proprietary medicine business and facilitates our penetration into China. Through the retail and wholesale activities of Hong Ning Hong Group, we will be able to acquire first-hand market intelligence which is valuable for our capitalizing on market opportunities and new product developments. Moving forward, we will continue to focus on advancing our channel sales strategy, aiming for greater penetration into the OTC market segments in Hong Kong and China."
Contact:Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Angela Ng Tel: (852) 2864 4855 Email: angela.ng@sprg.com.hk
Queenie Chan Tel: (852) 2864 4851 Email: queenie.chan@sprg.com.hk
Fax: (852) 2527 1196
Source: Jacobson Pharma Corporation Limited
Sectors: Daily Finance, Daily News, BioTech
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