SHENZHEN, China--(BUSINESS WIRE)--Tongjitang Chinese Medicines Company (NYSE:TCM - News), a Cayman Islands-incorporated specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, announced that its initial public offering of American Depositary Shares (ADSs) will begin trading today on the New York Stock Exchange under the symbol “TCM.”
Tongjitang expects the net proceeds from this offering to be approximately US$72 million. It plans to use the proceeds to enhance the marketing of its flagship osteoporosis treatment, Xianling Gubao, and other products, to strengthen its research and development infrastructure and broaden and commercialize its product pipeline; and to fund working capital and other general corporate purposes, which may include product licensing and strategic acquisitions of businesses. Tongjitang will not receive any of the proceeds from the sale of the ADSs by the selling shareholders.
Merrill Lynch & Co. and UBS Investment Bank are acting as the joint global coordinators and joint book runners for the offering. The offering of Tongjitang’s ADSs are being made only by means of a prospectus, copies of which may be obtained from Merrill Lynch, Pierce, Fenner & Smith Incorporated., c/o Prospectus Department, 4 World Financial Center, New York, NY 10080,,or by phone at 1-212-449-1000, or from UBS Investment Bank, c/o Prospectus Department, 299 Park Avenue, NY, NY 10171, USA, or by phone at 1-888-827-7275.
Tongjitang’s registration statement relating to these securities was declared effective as of March 15, 2007 by the United States Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Tongjitang Chinese Medicines Company
Tongjitang Chinese Medicines Company (“Tongjitang”) is a vertically integrated and profitable specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China.
Its flagship product, Xianling Gubao, is the leading traditional Chinese medicine for the treatment of osteoporosis in China as measured by sales. In addition to Xianling Gubao, the company manufactures and markets 10 other modernized traditional Chinese medicine products and 37 western medicines.
Established in 1995, Tongjitang conducts substantially all of its business through operating subsidiaries in China -- Tongjitang Pharmaceutical Co., Ltd., Tongjitang Distribution Co., Ltd., Tongjitang Chain Stores Co., Ltd., and Tongjitang Planting Co., Ltd. The principal executive offices of the company are located in Shenzhen, China.
Safe Harbor Statement
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although Tongjitang believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
Contact: Christensen Jane Liu, 852-2117-0861 jliu@ChristensenIR.com or Tip Fleming, 1-917-412-3333 tfleming@ChristensenIR.com
Source: Tongjitang Chinese Medicines Company
