| By Alex Shaw, Pharmaceutical Manufacturing News |
| Thursday, 12 March 2009 |
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Two years after entering into a letter of intent for a joint venture with Alpharma API Hong Kong Limited, a subsidiary of Alpharma, the world’s largest producer of vancomycin, Zhejiang Hisun Pharmaceutical Co., Ltd, a Chinese leading API manufacturer, recently announced that the company and Alpharma API
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Hong Kong have agreed to modify their joint investment plan following Alpharma API Hong Kong change of name to Axellia Hong Kong Limited. The two companies agreed to establish a joint venture called Axellia (Taizhou) Pharmaceutical in Taizhou, Zhejiang province, in which Hisun Pharmaceutical will hold a 49 per cent stake while Axellia Hong
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Kong will hold the remaining 51 per cent. With a registered capital of US$25 million, the JV will specialize in the manufacture of APIs, such as vancomycin.
In related news, the company’s board of directors has approved a plan terminating its joint venture agreement with Spain-based Farmaprojects S.A following the Spanish firm’s proposal to do so in light of an adjustment of its core business.
Hisun Pharmaceutical plans to invest an additional RMB730 million (approx. US$107 million) in its API projects under construction to better respond to the increasingly fierce competition in the Chinese pharmaceutical market and to ensure the achievement of its annual |
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operational goal for 2009.
Additionally, the API manufacturer also expects to apply to banks for credit facilities totaling nearly RMB2 billion (approx. US$294 million) this year, in order to meet its demand for working capital, ensuring the orderly development of its production and operation activities.
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