Shanghai ChemPartner Co., Ltd. Plans Reverse Merger With China's Quantum

ShangPharma will merge its Shanghai ChemPartner division, which includes all of the company's CRO/CMO operations, into Quantum Hi-Tech China Biological. The transaction, a reverse merger, allows ChemPartner access to China's capital markets, rather than spending years waiting for China IPO approval. ShangPharma said ChemPartner will continue to operate as a stand-alone company, even after the merger. Quantum, which is listed on the Shenzhen exchange with a market capitalization of $1.2 billion, produces fructooligosaccharide products as a probiotic for nutritional snacks. Specific terms, including ChemPartner's merger valuation, were not disclosed.