AXM Pharma to acquire 51% interest in Chinese pharmaceutical distributor

By Elaine Rigoli

Tampa, Fla., May 16 - AXM Pharma, Inc. has entered into an equity interest transfer agreement to acquire 51% interest of Liaoning Ming Cheng Medical & Pharmaceutical Co., Ltd. in exchange for 3.7 million shares of AXM Pharma's common stock.

Founded in 2000, Ming Cheng is a distributor of pharmaceutical and other medical products in China. Ming Cheng's 2005 revenue was $44 million and the company expects to increase 2006 sales by about 15%, according to a news release.

The acquisition is expected to close by June 30. Upon completion of the transaction, AXM will consolidate the results of Ming Cheng for financial reporting purposes, the release said.

AXM Pharma is a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. AXM Shenyang is located in the city of Shenyang, in the province of Liaoning, China.

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