Mar 21, 2008 (M2 EQUITYBITES via COMTEX) -- TCM | news | PowerRating | PR Charts -- Tongjitang Chinese Medicines Company (NYSE: TCM), a specialty pharmaceutical company in China, said on 20 March that the company has signed a definitive purchase agreement to acquire Qinghai Pulante Pharmaceutical Co Ltd, a privately owned plant-based pharmaceutical company, for an initial anticipated cash payment of approximately RMB25.5m.

Tongjitang will make additional payments over the next three years based on Pulante's financial and operational performance.

Tongjitang said it will enhance the company's product portfolio with a leading pulmonary disease (COPD) treatment in China, through this acquisition. Pulante's major revenue-generating product, Chongcao Qingfei Capsules, targets patients with Chronic Obstructive Pulmonary Disease (COPD). In 2007, Pulante collected revenue of approximately RMB40m. The transaction is subject to customary closing conditions and applicable regulatory approvals.