Sino-French private equity firm Cathay Capital Private Equity says it has invested RMB150 million (US$24.5 million) in traditional Chinese medicine firm Kunming Shenghuo Pharmaceutical Group Co., Ltd., according to a company announcement.
The deal was closed at the end of June. The investment is from Cathay Capital II and the Sino-French Fund for small and medium enterprises (SMEs)
The investment is a bet that traditional Chinese medicine will lead the growth in China’s pharmaceutical market, especially in the treatment of chronic diseases, and expand into overseas market with the backing of the Chinese governments.
Established in 1995, Shenghuo is a pharmaceutical company specialized in traditional Chinese medicine.
Lixuewang Xuesaitong Soft Capsule, the main product of the company, is made from a precious traditional medicinal herb and used in the treatment of cardiovascular diseases.
In addition, the company owns several pharmaceutical products in Yunnan Province such as Fibrauretinum Soft Capsule, Ban Lan Gen Granule and Sulfadiazine Silver Cream.
Shenghuo is a private enterprise supported by the Yunnan provincial government.