Chinese generic drugmaker Simcere receives $500-mn bid from chairman

Chinese generic drugmaker Simcere Pharmaceutical Group today said that it has received a $500-million takeover offer from a consortium led by chairman, Jinsheng Ren.

The Jinsheng Ren New Good Management Ltd, a British Virgin Islands company controlled by Ren, and Assure Ahead Investments Ltd and its affiliates, have offered to pay $9.56 per American depositary share (ADS) or $4.78 per ordinary shares in cash, valuing the company at about $500 million.

The consortium will form a transaction vehicle for the proposed acquisition, which they intend to fund through a combination of debt and equity capital.

Simcere Pharmaceutical said that it has formed a special committee of independent directors to consider the proposed transaction, and added, ''There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.''

Nanjing-based Simcere Pharmaceutical is a manufacturer and supplier of branded generic drugs in China. Its focus is to introduce generic and pharmaceutical products for the treatment of diseases with high incidence and or mortality rate.

The company has introduced a generic anti-stroke medication under the brand name Bicun and an anti-cancer drug, Endu.

Its products include antibiotics, anti-stroke medications, anti-inflammatory drugs, anti-cancer medications and other medicines.