Firms will work together on development and marketing of China Aoxing’s narcotic and pain-management drugs.
American Oriental Bioengineering and China Aoxing Pharmaceutical Company will jointly develop and commercialize narcotic and pain-management products in China. As part of this strategic alliance, American Oriental Bioengineering will make an $18 million equity investment in China Aoxing.
The equity investment is priced at $0.6 per share of China Aoxing’s common stock. It will give American Oriental Bioengineering an approximately 38% ownership.
China Aoxing and American Oriental Bioengineering will collaborate on sales of the former’s current product portfolio, which comprises two drugs. The firms will also work together on commercialization of China Aoxing’s narcotic drug development pipeline. The agreement covers the areas of marketing, branding, international product licensing, and R&D.