Lakeside adds Kelun Pharmaceutical to its distribution network

Published 21/01/2025, 14:38
Lakeside adds Kelun Pharmaceutical to its distribution network

ITASCA, Ill. - Lakeside Holding Limited (NASDAQ:LSH), a supply chain solutions provider with a focus on the Asia-Pacific market, has announced that its subsidiary, Hupan Pharmaceutical (TADAWUL:2070), has secured distribution agreements with Hubei Kelun Pharmaceutical Trading Co., Ltd. These agreements, valid through the year 2025, allow Hupan Pharmaceutical to distribute large-volume parenteral solutions and related medical products across China. The company has shown strong revenue growth of 28% in the last twelve months, though InvestingPro data indicates it operates with moderate debt levels and faces profitability challenges.

The contracts with Kelun Pharmaceutical, effective from January 1, 2025, to December 31, 2025, represent an expansion of Hupan Pharmaceutical's distribution portfolio, following a recent agreement with another major pharmaceutical company, Huiyu Pharmaceutical. These developments underscore Hupan Pharmaceutical's growing influence in the pharmaceutical distribution sector within China. Despite this expansion, the company's stock has declined nearly 50% over the past year, with an EBITDA of -$1.34 million in the last twelve months.

Lan Su, Chief Operating Officer of Lakeside, expressed the company's commitment to delivering critical medical products efficiently and highlighted the importance of the trust placed in them by leading pharmaceutical companies.

Lakeside Holding Limited operates through its two subsidiaries, American Bear Logistics and Hupan Pharmaceutical. American Bear Logistics provides customized cross-border ocean and airfreight solutions, while Hupan Pharmaceutical focuses on pharmaceutical logistics and distribution within China. This strategic move indicates Lakeside's dedication to enhancing its integrated cross-border logistics solutions.

The press release also contains forward-looking statements regarding Lakeside's expectations for future events, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated in these statements. For deeper insights into LSH's financial health and growth potential, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis tools.

This information is based on a press release statement from Lakeside Holding Limited.

In other recent news, Lakeside Holding Limited has secured a significant $1.5 million pharmaceutical supply deal in China with Sinopharm Holding Hubei New Special Medicine Co., Ltd., a subsidiary of the Sinopharm Group. This contract represents approximately 8% of Lakeside's last twelve months revenue of $18.25 million and will commence on January 1, 2025. Lakeside will be responsible for the sale and delivery of essential medicines to the Chinese market, further strengthening their existing partnership with Sinopharm Group.

In addition to this, Lakeside has recently acquired Hupan Pharmaceutical (Hubei) Co., Ltd., a Chinese pharmaceutical distribution and supply chain service provider, for approximately $0.6 million. The acquisition was made through Lakeside's wholly-owned subsidiary, Sichuan Hupan Jincheng Enterprise Management Co., Ltd. This move is in line with recent trends in the pharmaceutical supply chain industry and expands Lakeside's pharmaceutical logistics and distribution capabilities within China.

These are recent developments and investors are advised to keep an eye on further announcements from the company. It's worth noting that Lakeside is recognized as an emerging growth company, which allows for certain leniencies in reporting requirements. The details of these transactions can be found in the Equity Transfer Agreement and the company's press release statements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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