Sino Biopharmaceutical intends to use one of its associate companies to make and market a new Japanese drug that treats internal bleeding of the brain and stomach.
The modern Chinese medicine and biopharmaceutical firm said Beijing Tide Pharmaceutical, in which it had a 35 per cent stake, was in talks with Japan's LTT Bio-Pharma about a possible partnership.
Sino Biopharmaceutical chairman Tse Ping said the new drug was not yet available on the global market and would be put on clinical trials in the mainland if the deal was struck.
'The possible deal is in line with our strategy of achieving business expansion through acquisitions and with new products,' Mr Tse said.
He estimated it would take between $20 million and $30 million to set up production facilities for the new drug.
The company has been seeking opportunities to acquire rivals as the industry undergoes consolidation, prompted by the central government's requirement that drugmakers meet good manufacturing practice (GMP) standards, as well as the tighter lending policy.