Mar. 6, 2007 (China Knowledge) – Tongjitang Chinese Medicines, a developer and seller of modernized Chinese traditional medicine, plans to raise up to US$158 million on the New York Stock Exchange next month.

Bookrunners UBS and Merrill Lynch kicked off the international roadshow last Wednesday in Hong Kong and will meet investors in the U.S. this week. The pricing will be fixed on March 15.

The Shanghai-based drugmaker is marketing 9.87 million American depositary shares (ADS), of which 85% are new, while the rest are offered by company executives and private equity firms, sources told the South China Morning Post.

The firm intends to use the net proceeds to enhance its marketing channels, strengthen research and development facilities and broaden its new products pipeline.

Tongjitang, established in 1995, develops and sells modernized Chinese traditional medicine. Its flagship product, Xianling Gubao, is a traditional drug for the treatment of osteoporosis. The company’s net profit rose to RMB 134.3 million last year from RMB 110.8 million in 2005 while sales increased to RMB 485 million from RMB 346 million.

Plans are also in place to launch products targeting women's health, mental health and dermatology this year.