Lakeside secures $1.5 million pharma supply deal in China

Published 17/12/2024, 14:38
Lakeside secures $1.5 million pharma supply deal in China

ITASCA, Ill. - Lakeside Holding Limited (NASDAQ:LSH), a U.S. supply chain solutions provider currently trading at $2.56 per share, has announced a sales agreement with Sinopharm Holding Hubei New Special Medicine Co., Ltd., a subsidiary of the Sinopharm Group. The deal, which is valued at approximately $1.5 million, is set to commence on January 1, 2025, and will run through the end of the year. According to InvestingPro data, this contract represents about 8% of the company's last twelve months revenue of $18.25 million.

Under the agreement, Lakeside will be responsible for the sale and delivery of critical medicines such as Sodium Bicarbonate, Glucose, and Glucose Sodium Chloride to the Chinese market. This follows a previously established partnership with Sinopharm Group aimed at enhancing essential medicine storage, transportation, and logistics services. InvestingPro analysis indicates the company has achieved impressive revenue growth of 28.38% over the last twelve months, though it currently operates with moderate debt levels.

Lan Su, COO of Lakeside, expressed enthusiasm about further strengthening the company's relationship with Sinopharm Group, highlighting Lakeside's capability in delivering high-quality pharmaceutical products and ensuring a reliable supply of essential medicines. Investors should note that InvestingPro analysis suggests the stock is currently trading above its Fair Value, with additional insights available through InvestingPro's extensive financial metrics and analysis tools.

Lakeside Holding Limited operates through two specialized subsidiaries, American Bear Logistics and Hupan Pharmaceutical (TADAWUL:2070) (Hubei) Co., Ltd. The former provides customized cross-border ocean and airfreight solutions, while the latter, a recent acquisition, bolsters Lakeside's pharmaceutical logistics and distribution capabilities within China. The company's stock has experienced significant volatility, with a 36.16% decline over the past six months, trading between a 52-week range of $2.10 to $5.37.

The company's strategic hubs in major U.S. cities facilitate its unique focus on the Asia-Pacific market, connecting Asia-based logistics service companies and e-commerce platforms with the U.S. market.

This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. These statements do not guarantee future performance and may differ materially from actual results. Lakeside Holding Limited does not undertake any obligation to update these statements following the date they were made.

In other recent news, Lakeside Holding has made significant strides with the acquisition of Hupan Pharmaceutical for approximately $0.6 million. The acquisition involved Lakeside's wholly-owned subsidiary, Sichuan Hupan Jincheng Enterprise Management Co., Ltd., and targeted the full equity interests in Hupan Pharmaceutical. The deal was sealed with Hubei Haoyaoshi Zhenghe Pharmacy Chain Co., Ltd., and Hubei Huayao Pharmaceutical Co., Ltd., both of whom agreed to sell their stakes to Sichuan Hupan at the agreed-upon price. This development follows recent trends in the pharmaceutical supply chain industry. It's important to note that Lakeside Holding is recognized as an emerging growth company, which allows for certain leniencies in reporting requirements. The details of the transaction can be found in the Equity Transfer Agreement, filed as an exhibit to the Current Report on Form 8-K. As these are recent developments, investors are advised to keep an eye on further announcements from the company.

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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