China Regenerative Medicine Intl : Fund Invested to Acquire U.S Cosmeceuticals Brand-Obagi

[Group News] China Regenerative Medicine International Limited (Stock Code: 8158.HK) Fund Invested to Acquire U.S Cosmeceuticals Brand-Obagi

Hong Kong, 18 Jul 2017 - China Regenerative Medicine International Limited ("China Regenerative Medicine" or "the Company", stock code: 8158.HK), a new-technology enterprise principally engaged in research and development, production and sales of tissue engineering and regenerative medicine products, together with its subsidiaries (collectively "the Group") announced that a wholly owned subsidiary of the Company has entered into the Subscription Agreement , to make a capital contribution of US$75 million (equivalent to approximately HK$585 million) to subscribe a Fund managed by Haitong International ZhongHua Finance GP Ltd. as the General Partner.

The "Haitong International ZhongHua Finance Acquisition Fund I, L.P" ("Fund") is of maximum fund size of US$600 million, with China Regenerative Medicine's wholly owned subsidiary as the limited partner. The Fund recently announced that it has entered into an agreement with Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) ("Valeant"), to acquire the business of Obagi Medical Products, Inc. ("Obagi") at a consideration of US$190 million in cash. The acquisition is expected to be completed by end of this year. Valeant estimates that the full-year 2017 revenue and Adjusted EBITDA (non-GAAP) for the Obagi business is approximately US$85 million and US$30 million, respectively.

Obagi, as a global specialty pharmaceutical company, was founded by leading skin care experts in 1988. Obagi products are designed to help minimize the appearance of premature skin aging, skin damage, hyperpigmentation, acne and sun damage and are primarily available through dermatologists, plastic surgeons, medical spas and other skin care professionals.

In recent years, specialty pharmaceutical is becoming more and more popular all over the world. Nowadays, people put their health and well-being a priority and in particular, female consumers are willing to spend on beauty products. The U.S. specialty pharmaceutical industry holds a leading position in the world, which is monitored by a comprehensive regulatory regime by the FDA. In addition, with high barrier of entry into the industry, Asian consumers generally have higher confidence in American brands. The Group strategically invests in the U.S. specialty pharmaceutical brand through the Fund with an aim to generate a favourable return to the Group.

Furthermore, the investment is the deployment of leveraging on the Group's technological advantages to upgrade the brand's R&D capability and together with the brand's reputation to achieve the dual-strategy comprising of technological knowhow and marketing effort, in order to enlarge the Group's market share in the PRC and other Asian markets. Meanwhile, the Group will capture more business opportunities with the support of the brands' established sales network, to further boost the Group's business growth.

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Abou t China Regenerat ive Medicine Internatio nal Limited

China Regenerative Medicine International Limited，listed on The Stock Exchange of Hong Kong Limited in 2001, is a high-end new-technology enterprise principally engaged in research and development, production and sales of tissue engineering and regenerative medicine products. Currently, the Group has applied for more than 140 domestic and overseas patents. In 2014, the Group collaborated with the University of Oxford in the UK to establish the 'CRMI Technology Centre at the University of Oxford'. The Group is principally engaged in three major business segments, namely tissue engineering, cell therapy, and cosmetics. These include 'ActivSkin', the only tissue-engineered skin developed in China that contains living cells, and'Acornea', the world's first bio-engineered cornea which completed its clinical trials and realized commercialization. Meanwhile, the Group is in the position of building one-stop comprehensive cell therapy infrastructures, including BioCell Technology, China Stem Cell Clinical Applications Centre; HK International Regenerative Centre; AK Biomedical; Tianjing Weikai Bioeng ; Changzhou Yize, which are designed to provide cell processing services for clinical applications, conducted cell storage, cell culture and processing; cell culture equipment design, sales and manufacturing.