Shandong Xinhua Pharmaceutical (HKG:0719, SHE:000756) entered into a letter of intent with NovoSana (Europe) to potentially acquire up to 75% equity interest in NovoSana (Taicang), a Monday bourse filing said.

Upon completion of the Proposed Transaction, the Target Company will become a holding subsidiary of the Company that will be consolidated into the financial statements of the Group.

The pharmaceutical and chemical products company intends to accelerate its involvement in the fish oil sector through the acquisition.