Two China’s Drug Development Companies merging to become subsidiaries of BVI-based holding company
Sundia MediTech Company Ltd. and Shanghai United PharmaTech Ltd. announced last week about their merger. A letter of intent agreeing to combine these two companies was signed by Sundia CEO Dr. Wang Xiaochuan and United PharmaTech CEO Dr. Shi Xiongwei.
Under the terms of the merger, both United PharmaTech and Sundia MediTech will become subsidiaries of Sundia Investment Group, the BVI-based holding company which is currently the owner of Sundia MediTech.
Dr. Wang will become the new company’s Chairman and CEO, and Dr. Shi will obtain the positions of Director and Executive VP. The senior management teams of both companies will join together into a combined management team.
Sundia CEO Dr. Wang said that part of the reason for the merger is that it will combine United PharmaTech’s and Sundia’s technical expertise in different fields. Dr. Wang expects this merger to help the new company move to the forefront of the industry.
Dr. Shi stated that the merger was made easier by the similar background and future goals of Sundia and United PharmaTech. He said: “Our businesses are highly complementary and since we have had great success cooperating in the past, the agreement to merge came naturally.”
Sundia MediTech and United PharmaTech were both founded between 2002 and 2003 in Shanghai to provide drug development CRO services in different stages and fields. Over the past three years, both companies have thrived and built strong reputations in their respective specialties.