India's Ranbaxy pulls out of Chinese JV subsidiary with HNG Chembio

India's largest drugmaker Ranbaxy Laboratories, which is majority (64%) owned by Japanese drug major Daiichi Sankyo, is to sell its China-based joint-venture subsidiary Ranbaxy Guangzhou China - which was set up around 16 years ago - to partner HNG Chembio Pharmacy (part of the large Chinese state-owned Hunan Nonferrous Metals Holding. Financial terms of the divestment of the JV, in which Ranbaxy held an 83% stake, were not revealed.

RGC, one of the first Sino-Indian ventures in the sector, was a joint venture between the Ranbaxy group, Guangzhou Baiyunshan Pharmaceutical Co, Guangzhou, China, and Hong Kong New Chemic of Hong Kong. HNG has strong operations in the active pharmaceutical ingredients business. With this transaction, it will gain entry in the field of pharmaceutical dosage forms, in which HNG plans substantial further investments in the near future.

Founded in 1993, Ranbaxy Guangzhou China was the first Sino-Indian partnership. It began production in 1995 and ultimately received Good Manufacturing Practice approval. Its revenues were $13.5 million in 2007, largely making anti-infectives and cardiovasculars for the Chinese market.