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Shandong company to acquire US medical research firm

By Zhao Ruixue in Jinan (chinadaily.com.cn) Updated: 2016-01-11 20:09

Shandong Oriental Ocean Sci-tech Co Ltd will acquire US medical research firm Avioq Inc for about 430 million yuan ($65 million), according to a notice released by the company.

The Shandong company will also assume liabilities worth 20 million yuan from purchasing land and workshops from Avioq Inc.

The acquisition will cultivate new profit resources for the company by promoting its business in precision medical markets including the market of in vitro diagnosis and genetic diagnosis, said Yu Dehai, secretary of the board of Shandong Oriental Ocean Sci-tech Co Ltd.

Based in North Carolina, Avioq Inc has more than 250 years experience in the diagnostics industry. The company's current products include FDA approved HIV-1 and FDA licensed HTLV-I/II reagents. The company also offers contract research, development and manufacturing for diagnostic test kits and critical biomaterials to third parties.

Yu said Avioq Inc has a great team and strength in the field of research and development.

"With critical techniques, our service capabilities and the number of customers in the precision medical industry will keep increasing," said Yu.

The related party promised net profit after deducting non-recurring profit and loss of not less than $4 million in 2016, $6 million in 2017 and $12 million in 2018 for Avioq.

Net profit for Avioq was $1.23 million in 2014.

Based at Yantai, a coastal city in Shandong province, Oriental Ocean listed on the Shenzhen Stock Exchange in 2006. The company is involved in seafood seed breeding, farming, seafood processing and bonded storage business.

The company's stock went down to stand at 22.36 yuan on Monday.

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