Aurobindo (Datong) Bio-Pharma

Aurobindo (Datong) Bio-Pharma Company Limited, China, a 100% subsidiary of the Hydedrabad based Aurobindo Pharma Ltd, was started with an investment of Rs.1057.3 million for manufacture of 7ACA and other fermentation products and has commenced commercial production in November 2002.

Aurobindo (Datong) Bio-Pharma has setup a fermentation facility at Datong in China, to manufacture Penicillin G Potassium and 6- APA, key raw materials for large number of semi synthetic penicillins. Aurobindo is presently importing large quantity of Pen.G. This new capacity will supplement its import.

Aurobindo Tongling (Datong) Pharmaceutical Company Limited, originally incorporated as a 50:50 Joint Venture Company between Aurobindo Pharma Ltd and Shanxi Tongling Pharmaceuticals Co., Ltd for manufacture of pharmaceutical products for the local market. Later, in October 2002, the JV partner's stake has been acquired by Aurobindo (Datong) Bio- Pharma and this company became a wholly owned subsidiary of Aurobindo Pharma Ltd.

Part of the finished products of Datong unit are transferred to Aurobindo Tongling for the manufacture of various semi synthetic penicillins. This cGMP compliant plant, caters to the domestic market of China.

NCPC Orchid

NCPC Orchid Pvt.Ltd. is a 50:50 joint venture between Orchid Chemicals & Pharmaceuticals Ltd and $ 800 million North China Pharmaceutical Corporation (NCPC), the largest pharmaceutical group in China.

Situated in Shijiazhuang, China, NCPC Orchid undertakes manufacturing and marketing of sterile cephalosporin bulk actives and formulations. NCPC Orchid has a production capacity of 300 MT and focuses on product range of 6 cephalosporin bulk actives for parenteral use.

NCPC Orchid would diversify into other therapeutic areas in the future.1st phase of its $ 25 million JV, the sterile crystalline facility commenced operations a few months back. The modern sterile crystalline facility has been established with Orchid's state-of-the-art technology. The second phase comprising the sterile lyophilisation block is yet to be commissioned.

Of the total project cost of $25 million for the joint venture company, Orchid Chemicals has invested $5 million in equity for its 50 per share, while $15 million was mobilized by the joint venture as debt from a Chinese bank.

The products identified to be manufactured in sterile crystalline forms are Cefatoxime, Ceftriaxome, Ceftazidime and Cefuroxine Na, while Cefazolin and Cefoperazone Na will be manufactured in lypohilisation form. About 150 MT of the total production capacity has been earmarked for production of the crystalline forms while the remaining will be that of lypohilisation form.

The Mumbai based Lupin Ltd is one of the select Indian companies exporting bulk actives to China. The main products sold in China by Lupin are 7ADCA, cephalexin, cefaclor and ethambutol. Lupin is the only company from India which exports ethambutol to the country. The company states the revenues from China, including Taiwan and Hongkong, for the first nine months of FY 2002-03 ended December 2002 were at Rs. 901 million against Rs.637 million in the corresponding period of the previous year. Details of exports not available.

Apart from Lupin, a few other players like Wockhardt Ltd from Mumbai, Cadila Healthcare Ltd and Torrent Pharma from Ahmedabad are also reportedly doing business with China.