Weifang Shengtai to supply raw materials to Kelun Pharma
Shanghai. August 11. INTERFAX-CHINA - Shengtai Pharmaceutical Inc. announced on Aug.10 that its subsidiary, Weifang Shengtai Pharmaceutical Co. Ltd., will supply raw materials to Kelun Pharmaceutical Co. Ltd.
According to the announcement, Weifang Shengtai will supply Kelun Pharma with 10 thousand tons of pharmaceutical injection-grade dextrose monohydrate. Of this, 9.3 thousand tons will go to Kelun Pharma's subsidiary in Sichuan Province, and seven hundred tons to its subsidiary in Guizhou Province.
Kelun Pharma will pay for the shipments in advance, and the agreement will help both parties expand production and improve quality standards, the announcement said.
Weifang Shengtai is a leading domestic producer of injection-grade glucose with a market share of about 40 percent. The company is one of China's three licensed manufacturers of the dextrose monohydrate variety of injection-grade glucose, which is priced at about RMB 4,500 ($664.70) per ton on the China market.
"Weifang Shengtai has an annual production capacity for over 100,000 tons of pharmaceutical injection-grade glucose," a Shengtai Pharma investor relations representative surnamed Gao told Interfax on Aug. 11.
With 16 subsidiaries, Kelun Pharma is one of the largest manufacturers of intravenous (IV) solutions in the world. The company manufactures and distributes 351 drugs in 16 categories, some of which are exported. In 2009, Kelun sold approximately 2.2 billion units of injection products.
From July 2009 to March 2010, Shengtai Pharma achieved sales revenue of $81.04 million, up 64.65 percent year-on-year on the back of better sales and higher prices.