Central American Equities to acquire Ostar Pharmaceutical

By Jennifer Chiou

New York, Feb. 14 - Central American Equities Corp. announced it signed a letter of intent to acquire Ostar Pharmaceutical, Inc.

Ostar owns 60% of the stock of Chinese company Hebei Aoxing Pharmaceutical Group, the developer of a patented manufacturing process for generic analgesic drugs, including oxycodone, pholcodine, naloxone and tilidine.

The company said Aoxing is one of few companies in China to be granted the license to manufacture the drugs.

"Since the Chinese analgesic market is heavily regulated by the government, we believe that Aoxing, as one of the first companies to obtain the license to manufacture these types of products, will reap the heavy rewards from this first mover's advantage," Michael N. Caggiano, Central American Equities president and chief executive officer, said in a news release.

"We are very pleased that we will become a publicly traded company through this merger transaction with Central American Equities Corp.," Aoxing chief executive officer and chairman Zhenjiang Yue said in the release.

"We feel it gives our company an excellent opportunity to grow organically and through acquisitions of smaller pharmaceutical companies that will compliment our business model."

The merger is expected to be completed in the next 60 days.

Based in Miami, Central American Equities is a hospitality company that operates hotels and restaurants.

© 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.