7chemicals, an Ahmedabad-based exporter of pharmaceutical raw material, finished formulations and chemicals, has entered into two joint venture agreements with the Ministry of Health of the South African Government to run a medium sized EC certified pharmaceutical company in Botswana and to set up a 200 bedded super speciality hospital in South Africa.

Disclosing this to Pharmabiz, Rakesh, director, 7chemicals said the MoU was signed with the health ministry officials of the South African Government during the first week of November. 7chemicals aims to manufacture about 20 essential formulations and antibiotics in the field of anti-retroviral, gastro-enterology, anti-malarial etc., besides utilising the facility for repacking medicines like omiprezol and ranitidine with international quality standards. The company would also supply some semi-finished formulations from India, which would be packed in the factory for re-exports to EU nations.

At present the five-year-old public sector company, the lone drug manufacturing facility in the Botswana region, manufactures a few essential formulations required for the local market. The Indian partner will provide necessary modern technical know-how to manufacture the formulations and will supervise the manufacturing process, besides helping to market the production. The JV is aimed to make the company a leading supplier of drugs in 14 countries in the South African region, besides exports and re exports to European Union nations.

In another JV, 7chemicals has taken over a 200-bedded hospital in South Africa. The hospital will have about 15 specialty sections like oncology, pathology, cardiology, ICU, paediatrics, gynaecology, orthopaedics, haematology etc. Around 100 doctors and paramedical staff would be appointed. Recruiting has already begun, including a majority from India, informed Rakesh. The hospital is scheduled to take off by the end of January 2006.

Rakesh said that 7chemicals would be investing about US $ 2.5 million each in both the facilities and expects additional revenue of about US $ 5 million in the first year of operation. Further, 7chemicals has agreed to the health ministry to contribute 5% of their profits from the joint venture in South Africa towards HIV patients in the form of free ARV drugs.

As reported in Pharmabiz recently, 7chemicals had bagged contract-manufacturing deals worth over Rs.9 crores from Russia, Yemen and Croatia. The company has significant presence in Russia and other CIS countries, Philippines and Latin America, including six joint ventures for drug supply.

7 Chemicals is into manufacturing a wide range of APIs and formulations like artemisinin albendazole, amlodpine besylate, ampicillin, azithromycin, alprazolam, cephalaosporins, as well as statins and enzymes, anti-diabetics, anti-cancer, anti-asthmatics, steroids etc. The company has been working with Indian counterparts like Aarti Drugs, Unichem, Saraca, Synthokem, Lincoln Pharma, Granulels India, Krebs, Indswift, Kairav and many others. With warehouses in Frankfurt, Germany and Moscow, 7 Chemicals has is in contract-manufacturing business for the last 3-4 years.