Ranbaxy Laboratories, member of the Daiichi Sankyo Group, has decided to sell its China based subsidiary Ranbaxy (Guangzhou China) Ltd (RGCL) to HNG Chembio Pharmacy Co Ltd. RGCL was a joint venture between the Ranbaxy group, Guangzhou Baiyunshan Pharmaceutical Company Ltd, Guangzhou, China and Hong Kong New Chemic, Hong Kong.
This transaction is part of Ranbaxy’s endeavour to develop a new business model for China which entails the 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.
HNG is part of the large state-owned Hunan Nonferrous Metals Holding Group Co, Ltd., located in the Hunan Province in China. HNG has strong operations in the pharmaceutical ingredients business. With this transaction, HNG will gain entry in the field of pharmaceutical dosage forms, in which HNG plans substantial further investments in the near future.