Palm Beach, FL 3/1/12 (StreetBeat) – Hubei Minkang Pharmaceutical Ltd. (OTCBB: HBMK) is pleased to announce that its Chinese subsidiary, Hubei Minkang Pharmaceutical Co., Ltd. ("Hubei PRC") has recently signed a Memorandum of Understanding with Henan Wanlong Pharmaceutical Co., Ltd. ("Henan Wanlong") of Zhengzhou, Henan, China with respect to a proposal for Hubei PRC to acquire 51% of Henan Wanlong to expand distribution and increase sales growth.The proposed transaction with Henan Wanlong would result in the Company indirectly acquiring 51% of Henan Wanlong through a share exchange, a modest capital injection by the Company into Henan Wanlong to support business expansion and provide the Company with access to Henan Wanlong's extensive sales network allowing for wider distribution of Hubei Minkang's products to generate substantial sales growth.
Henan Wanlong is a sales distribution company focused on supplying injection drugs to hospitals throughout China. Current turnover is estimated at RMB 700 million to 800 million (US $111 million to $127 million). For the past five years, Henan Wanlong has been the sole distributor for Hubei Minkang's flagship drug, Yinxing Damo Zhusheye. The contract was recently renewed for another three years.
According to Hubei Minkang's President, CEO and Director, Lee Tong Tai, the MOU with Henan Wanlong is another key step in Hubei Minkang's ongoing strategic plan to expand its distribution network throughout China.
"We know the market for injectable drugs is continuing to expand," said Mr. Lee. "Collaborating with Henan Wanlong creates an opportunity to access hospitals throughout China and take advantage of that growth."
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