NCPC Orchid Pharmaceuticals Co. Ltd., the 50:50 joint venture between the Chennai-pharma major Orchid Chemicals & Pharmaceuticals Ltd and $ 800- million North China Pharmaceutical Corporation (NCPC), has completed its first full year of operations last financial year and recorded revenues of USD 25 million.

According to Orchid sources, the JV has started manufacture of high-end injectable cephalosporin APIs, which has positioned the JV well in the Chinese market. Further growth in revenues is expected with newer products to be introduced during the current fiscal.

Orchid floated the joint venture three years ago to strengthen its presence in the Chinese market, with focus on manufacturing and marketing of sterile cephalosporin bulk actives and formulations for the Chinese market. Though this venture primarily caters to the local China market, it is also envisaged as an export base for Orchid from China ‘in the future based on manufacturing competitiveness’, according to Orchid managing director K Rahavendra Rao.

Situated in Shijiazhuang, China, the facility has a production capacity of 300 MT and a product range of six cephalosporin bulk actives for parenteral use. The project is also envisaged to diversify into formulation and other areas in a later stage. The products manufactured in sterile crystalline forms include Cefatoxime, Ceftriaxome, Ceftazidime and Cefuroxine Na, while Cefazolin and Cefoperazone Na is manufactured in lypohilisation form. About 150 MT of the total production capacity has been earmarked for production of the crystalline forms while the remaining is for lypohilisation form.

While NCPC has strength in fermentation based products and biotechnology, Orchid is strong in the areas of organic synthesis, analytical chemistry pharmaceutical research and drug delivery. The partners hope the joint venture could together leverage the advantages of their respective areas of strength.

Orchid sources say the total Chinese market for pharmaceutical product is valued at US$15.2 billion with a growth rate of 10 per cent. The anti-infectives constitute 29 per cent of the total market, growing at a rate of 12 per cent. Among the anti-infectives, cephalosporin products constitute 50 per cent, valued at US$ 2.2 billion, growing at a rate of 14.5 per cent.

NCPC is part of the US$680-million North China Pharmaceutical Group Corporation and is among the world's largest producer of Pencillin G. The group has expertise and experience in a wide spectrum of pharmaceutical products including semi-synthetic antibiotics, vitamins, fermentation based products, recombinant DNA products and formulations. The group also has a presence in traditional Chinese medicine veterinary medicine and pesticides.

Orchid Chemicals & Pharmaceuticals Ltd. is a leading pharmaceutical company headquartered in Chennai and is involved in the manufacture of diverse bulk actives, formulations and nutraceuticals. With exports spanning more than 75 countries, Orchid is the largest manufacturer-exporter of cephalosporin bulk actives in India and is ranked amongst the top five cephalosporin producers in the world.