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Ranbaxy exits from China venture
Ranbaxy Laboratories has sold its entire stake in Chinese joint venture — Ranbaxy Guangzhou China Ltd (RGCL) — to HNG Chembio Pharmacy Co Ltd for an undisclosed amount.
Ranbaxy Laboratories has sold its entire stake in Chinese joint venture — Ranbaxy Guangzhou China Ltd (RGCL) — to HNG Chembio Pharmacy Co Ltd for an undisclosed amount.
Ranbaxy Laboratories Ltd and Ranbaxy Netherlands Ltd owned 83 per cent stake in RGCL, a joint venture formed in 1993 between the Ranbaxy group, Guangzhou Baiyunshan Pharmaceutical Company Ltd and Hong Kong New Chemic.
“Ranbaxy had a single manufacturing unit in China through RGCL and after the stake sale, Ranbaxy will supply drugs to the Chinese market from other global production sites,” said a spokesperson of Ranbaxy Laboratories.
“This transaction is part of Ranbaxy’s endeavour to develop a new business model for China, which entails marketing of value-added pharmaceutical formulations and the consolidation of manufacturing operations, for cost synergies. China continues to be an important market for Ranbaxy and the company believes that this new approach will create greater value,” said a release from Ranbaxy. Last year, RGCL has contributed around $20 million to the overall revenue of the company while registering a growth of 17 per cent.
HNG is part of the state-owned Hunan Nonferrous Metals Holding Group in China. HNG has operations in the pharmaceutical ingredients business. With this transaction, HNG will gain entry in the field of pharmaceutical dosage forms, in which HNG plans further investments in the near future.
