Sihuan Pharmaceutical Holdings Group, a major Chinese pharmaceutical company, announced in May that the company plans to expand its businesses and raise market share through acquisitions this year.

The company is now talking to at least three private Chinese pharmaceutical companies about potential acquisition or joint venture deals.  Sihuan Pharma said that the funding for accelerated acquisitions will come from bank loans, money raised from its IPO and cash on hand.  The financial statements of the company show that it had CNY 42 million cash at the end of 2006.

DMG & Partners estimates that Sihuan Pharma will have a net profit of CNY 137 million (US$18 million) in 2007.