Amphastar Pharmaceuticals Restructuring Chinese Subsidiaries to Focus on Drug Production; Sees Moves Boosting FY21, FY22 EPS
04:28 PM EDT, 05/07/2021 (MT Newswires) -- Amphastar Pharmaceuticals (AMPH) late Friday said its Amphastar Nanjing Pharmaceuticals subsidiary in China will buy back the 26% of its equity stake now held by outside investors for about $29 million, with the drugmaker also saying it will spin off its Nanjing Hanxin Pharmaceutical Technology unit into a stand-alone entity, subject to regulatory approvals.
The moves are part of Amphastar's efforts to reorganize its Chinese subsidiaries. The parent company also said some of the current Amphastar Nanjing investors plan on investing a portion of their stock buyback proceeds to acquire a majority stake in Nanjing Hanxin.
Following those purchases, Amphastar Nanjing will retain a 20% interest in Nanjing Hanxin and will continue to produce active pharmaceutical ingredients for the parent company in addition to making finished pharmaceutical products for sale outside the U.S. market, the company said.
Amphastar Pharmaceuticals also said it expects the proposed transactions will increase its per-share earnings by about $0.03 per share during 2021 and by $0.12 per share in 2022.
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