Livzon Pharma to set up API hub in Ningxia
Shanghai. May 31. INTERFAX-CHINA - Livzon Pharmaceutical Group Inc. (Livzon Pharma) plans to invest up to RMB 1 billion ($154.30 million) in two new active pharmaceutical ingredient (API) joint ventures (JV) in Shizuishan City, Ningxia Hui Autonomous Region, an employee with the company told Interfax May 31.
Livzon Pharma will initially invest RMB 300 million ($46.29 million) to set up the ventures, said an investor relations representative, Wang Shuguang. It will partner with two subsidiaries, Livzon Pharmaceutical Group Fuzhou Fuxin Pharma Co. Ltd. (Fuxin Pharma) and Livzon Pharmaceutical Group Xinbeijiang Pharma Co. Ltd. (Xinbeijiang Pharma).
Each of the JVs will have a registered capital of RMB 100 million ($15.43 million), with Livzon Pharma contributing RMB 90 million ($13.89 million) for a 90 percent stake, and its respective partner investing RMB 10 million ($1.54 million) for the remaining 10 percent.
The two subsidiaries have production bottlenecks at their current sites, said Wang, and the JVs will produce their main products.
Fuxin Pharma is a wholly-owned subsidiary of Livzon Pharma based in Fujian's provincial capital of Fuzhou. It mainly produces APIs for antibiotics, such as colistin and vancomycin, according to its parent's 2010 annual report.
Xinbeijiang Pharma, in which Livzon Pharma has a 92 percent stake, is based in Guangdong Province's Qingyuan City and primarily produces the APIs forpravastatin, mevastatin and salinomycin.
Livzon Pharma plans to purchase a 400,000 square-meter site in Shizuishan industrial park to house workshops for the JVs, Wang said, adding that Ningxia offers cost advantages in power tariffs, raw materials and human resources.
Livzon Pharma is based in Guangdong Province's Zhuhai City and listed on the Shenzhen Stock Exchange. The firm produces chemical drugs, traditional Chinese medicines (TCM) and diagnostic equipment, It targets operating revenue of RMB 3 billion ($456.30 million) this year, according to its annual report.
- MS