(Yicai) July 31 -- Leadman Biochemistry’s shares surged by their daily trading limit after the Chinese developer of in vitro diagnostic reagents and instruments said it plans to buy control of a leading producer of tuberculosis diagnostic reagents.

Leadman Biochemistry [SHE: 300289] soared 20 percent to close at CNY7.04 (98 US cents) per share in Shenzhen today. The stock has gained 44 percent since the end of last year.

Leadman Biochemistry has signed an agreement to buy 70 percent of Simcere Sanroad Biological Products from three of its institutional investors, with the exact price yet to be negotiated, the Beijing-based buyer said late yesterday. Under the deal, it also pledged to buy their remaining 25.62 percent stake in the future.

The acquisition will prompt a restructuring of Leadman Biochemistry’s major assets, plug gaps in its business, and further enrich the firm’s product portfolio, it noted.

Simcere Sanroad’s reagents are mainly used in infection screening, precise diagnosis, and drug resistance tests for patients with TB. Owing to high technical barriers, its TB products have ranked first for China market share in recent years. The firm also develops and makes vaccines for other diseases.

Editor: Futura Costaglione