Drug maker Genstar Group up for sale
Shanghai. September 27. INTERFAX-CHINA - Shareholders of Anhui Genstar Group Co. Ltd. (Genstar) have chosen to put the privately-owned drug maker up for sale on the Anhui Assets and Equity Exchange for an asking price of RMB 20 million ($3.13 million), the exchange announced Sept. 26.
Based in Anhui's provincial capital of Hefei, Genstar had liabilities of RMB 18.14 million ($2.84 million) on total assets of RMB 35.81 million ($5.60 million) as of end-July.
Established in 2000 with a registered capital of RMB 45 million ($7.04 million), the firm ceased operations in September last year, and its current Good Manufacturing Practice (GMP) certificate expired in January this year.
Genstar's assets include a 37 percent stake in fellow Hefei-based drug maker Anhui Guozheng Pharmaceutical Co. Ltd., which has more than 100 drug production approvals.
Genstar also has a 4,500-square-meter plant, primarily producing medicinal cream, ointments, gels and eye drops.
In China, many small and medium-sized drug makers like Genstar are plagued with management problems and struggling to maintain profitability. Their numbers are declining as they are either snapped up by bigger fish or bankrupted, Zhang Hongbin, an industry analyst from Datong Securities, told Interfax in July.
-MS