(Yicai Global) Aug. 2 -- Xinjiekou Department Store, also known as Xinbai, has bought Hong Kong-based Shiding Shengwu Biotechnology for its US asset's innovation for prostate cancer treatment.
Xinbai acquired all of Shiding Shengwu Biotechnology's shares, the Nanjing-based department store operator said in a statement.
Xinbai paid the purchase by issuing new 180 million new stocks to the biotech firm's former controlling shareholder Sanpower Group. These shares were valued at CNY2.5 billion, which is almost 60 percent less than the trading price of CNY6 billion, which brings the sales price to CNY3.5 billion (USD513.3 million).
Shiding's main asset is its full equity stake in US biopharmaceutical company Dendreon that has developed Provenge, the first cellular immunotherapy which was approved by the US Food and Drug administration in 2010.
Sanpower Group honored its commitment to sell Dendreon to Nanjing Xinbai with CNY3.5 billion, which shows that its controlling shareholders fully support and maintain optimism on Nanjing Xinbai, Hua Guikan, vice president of Sanpower told state-backed The Paper.
Dendreon's net profit increased 5 percent last year to CNY446 million (USD65.4 million) from the year before. Sanpower estimates that both sold listed companies offer great headroom for business growth.
Editor: Emmi Laine