Yesterday, the traded on the OTC market since this spring First China Pharma Group (OTC:FCPG) stock made its first jump up. Two days after the announced by the company voluntary share exchange transaction with First China Pharmaceutical Group Limited, FCPG stock rushed up.
From the end of July up to last Thursday, FCPG stock was traded rarely, in small portions and without any change in the price. Worth $0.99 per share for months, FCPG pulled back slightly last week in expectation of the big day of its first rush.
On the above mentioned news, FCPG surged 6.25% during its first stir, on a volume exceeding thirty one times the average trading volume for the stock.
One of the most impressing facts in the company’s press release, which maybe unblocked investors’ optimistic mood and confidence about FCPG shares, was not the acquisition itself. It has been expected since this August and was filled with the SEC last week.
In the press release, the company states to have a strategic advantage over its competitors. FCPG claims to be the only pharmaceutical distribution company in Yunnan Province to obtain government approval to fill orders over the Internet.[BANNER]
At present, FCPG is a provider of approximately 5,000 drugs to more than 4,700 pharmacies, hospitals and clinics in China’s Yunnan Province. The province has a population of 45.7 million citizens.
In addition, according to FCPG’s announcement, the Chinese pharmaceutical market is growing by more than 20% per year and China may potentially become the third largest prescription drug market next year. The sales on this market are expected to grow by $40 billion by 2013, thanks to the improvement of the country’s healthcare infrastructure.
Yesterday, FCPG stock closed at $0.85 per share, leaving investors with the anticipation for long-term gains.
