AMDL, Inc. (AMEX: ADL) has signed a letter of intent (LOI) to acquire a
China-based drug distributor, Sichuan ZhiTong Pharmaceutical, Ltd. (SZP). The
two companies will retain an independent business valuation company to determine
the price.
SZP is a privately-held pharmaceutical distribution company
that sells and distributes traditional Chinese medicines, health foods, medical
equipment, and generic pharmaceutical products. It has been a distributor for
AMDL since Q4 of 2007, distributing the company’s Domperidone anti-emetic
product.
At present, SZP sells approximately $100,000 per month of
Domperidone, but AMDL expects that increased marketing will take these levels
over $200,000 per month in the next 60 days.
SZP will consolidate sales
forces with AMDL’s China subsidiary, Jade Pharmaceuticals. SZP will distribute
additional AMDL pharmaceutical products including GoodNak, Levofloxicin and
Ondansetron. SZP currently employs approximately 80 in-house sales agents.
