Universe Pharmaceuticals INC Announces Strategic Alliance with Kitanihon Pharmaceutical Co., Ltd. to Address the Market Demand for Kampo Medicine and High-end Traditional Chinese Medicine
December 13 2021 - 8:30AM
Universe Pharmaceuticals INC (the “Company”) (Nasdaq: UPC), a
pharmaceutical producer and distributor in China, today announced
that on December 1, 2021 the Company entered into a strategic
cooperation agreement and associated ancillary agreements (the
“Agreements”) with Kitanihon Pharmaceutical Co., Ltd. (“KP”), a
Japanese company engaged in the research, development,
manufacturing, and distribution of Kampo (a traditional Japanese
herbal medicine) pharmaceutical and medical products. The
purpose of the Agreements is to address market demand for Kampo
medicine and high-end traditional Chinese medicine (“TCM”).
Pursuant to the Agreements, the Company and KP
agree to exchange equity interests in each other's company and, as
previously disclosed, jointly build a new manufacturing facility
(the “Facility”) in Ji’an, Jiangxi Province, in accordance with the
market access requirements from the Japan’s Pharmaceutical and
Medical Devices Agency (PMDA). The Company will appoint a director
to KP’s board of directors to directly participate in the
management of KP. The Chief Executive Officer of KP, Nishimura
Ichiri, will be named as Foreign Expert of the Company.
The Facility, once built, will principally serve
as a production facility for Kampo medicine and high-end TCM
products. Products manufactured in the Facility will be sold in
Japan, Southeast Asia, and countries in China’s Belt and Road
initiative.
Mr. Gang Lai, Chairman and CEO of Universe
Pharmaceuticals INC, commented, “We are pleased to have KP as our
strategic partner to address the demands for Kampo medicine and
high-end TCM products, which we believe is significant for the
Company's long-term development. In addition, we are very excited
to have Mr. Ichiri, a well-known expert in Kampo medicine in Japan,
join the Company as Foreign Expert. With the cooperation of KP and
the addition of Mr. Ichiri, the Company will establish its presence
in the Kampo medicine market and further strengthen its position
and capability in the traditional Chinese medicine market. We
expect to generate a revenue of RMB2 billion with a profit of
RMB260 million annually within five years after the launch of the
Facility. Looking forward, we will strive to become a benchmark
company in the pharmaceutical industry by implementing our
innovative and efficient business model of Sino-Japanese
cooperation.”
About Universe Pharmaceuticals
INC
Universe Pharmaceuticals INC, headquartered in
Ji’an, Jiangxi, China, is a pharmaceutical producer and distributor
in China. The Company specializes in the manufacturing, marketing,
sales and distribution of traditional Chinese medicine derivatives
products targeting the elderly with the goal of addressing their
physical conditions in the aging process and to promote their
general well-being. The Company also distributes and sells
biomedical drugs, medical instruments, Traditional Chinese Medicine
Pieces, and dietary supplements manufactured by third-party
pharmaceutical companies. Currently, the Company’s products are
sold in 30 provinces of China. For more information, visit the
company’s website at http://www.universe-pharmacy.com/.
Forward-Looking Statements
All statements other than statements of
historical fact in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as "may," "will," "expect," "anticipate,"
"aim," "estimate," "intend," "plan," "believe," "potential,"
"continue," "is/are likely to" or other similar expressions. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results and encourages
investors to review other factors that may affect its future
results in the Company’s registration statement and in its other
filings with the SEC.
For more information, please contact:
Ascent Investors Relations LLCTina
XiaoPresidentPhone:
917-609-0333Email: tina.xiao@ascent-ir.com
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