Chennai-based pharma major, Orchid Chemicals & Pharmaceuticals (Orchid Pharma) announced that it was exiting its 50:50 manufacturing joint venture in China.
The 50 per cent stake that Orchid holds in the joint venture (JV) company (NCPC-Orchid Pharmaceuticals) will be transferred to the partner company (NCPC) for a total cash consideration of $ 13.9 million.
Orchid had in 2002 entered into a 50:50 JV with North China Pharmaceutical Corporation (NCPC) to set up a Cephalosporin API manufacturing facility located in Shijiazhuang, China.
Commenting on the development, K Raghavendra Rao, Chairman and Managing Director, said, “With the local Chinese players fast integrating, the operating conditions have grown quite competitive in China. Moreover, the products that the JV manufactures and markets in the local Chinese market have reached a mature stage resulting in flat growth prospects going forward. Hence, it was a prudent decision to relinquish our stake to the partner and exit the JV.”
EP News Bureau