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Oriental, Aoxing to jointly market pain drugs

(Agencies)
Updated: 2008-04-16 10:15

Pharmaceutical company American Oriental Bioengineering Inc said Tuesday it will take a 38 percent stake in China Aoxing Pharmaceutical Company Inc as part of a deal to jointly develop and market narcotics and pain relievers in China.

American Oriental Bioengineering will pay $18 million for 30 million shares of China Aoxing, which is traded in the Over-the-Counter market in the US.

Separately, China Aoxing said it closed its acquisition of Shijiazhuang Lerentang Pharmaceutical Company Ltd, a China-based drug maker specializing in pain-management products.

American Oriental said the deal will allow it to increase its narcotic and pain-management offerings in China, while China Aoxing said it will benefit from American Oriental's sales and marketing and distribution networks.