AMDL to acquire two Chinese pharmaceutical firms

By Angela McDaniels

Seattle, Nov. 22 - AMDL Inc. said it has entered into a letter of intent with Jade Capital Group Ltd., a Hong Kong company, to acquire two China-based pharmaceutical companies for up to 13,215,000 shares of AMDL common stock.

The number of shares to be issued in exchange for the stock of the two companies is dependent on the companies meeting certain financial tests for the period ending Dec. 31, AMDL said.

The two pharmaceutical firms manufacture a number of products, including injectables and tablets. Revenues from the two firms to be acquired are expected to be $6 million for the 12 months ending Dec. 31.

"This acquisition is anticipated to create a lower risk, broader operating business that takes advantage of China's growing pharmaceutical industry," AMDL president and chief executive officer Gary Dreher said in a company news release.

"Jade's business activities in China provide access to the fastest-growing pharmaceutical market in the world and an ideal platform to introduce our DR-70 cancer test kit."

Jade has various therapeutic products under development including a liver cancer treatment technology in phase 3 development. This new product is anticipated to be added to AMDL's Combination Immune Therapy technology in order to create a broader, cancer-focused, product line.

"The transaction will provide a unique opportunity to introduce our products to the United States and world markets and to exploit AMDL's proprietary technology in China," Jade executive director Frank Zhen said in the release.

The transaction is subject to AMDL stockholder approval and other conditions. A definitive agreement is expected to be finalized by mid-December, the company said. The acquisition is anticipated to close in April 2006.

AMDL is a biotechnology company headquartered in Tustin, Calif., that develops and markets tests for the early detection of cancer and other serious diseases.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.