Ranbaxy Laboratories, India's largest pharmaceutical company, today announced that it had transferred its entire shareholding in its joint venture firm Ranbaxy Guangzhou China to state-owned Chinese firm HNG Chembio Pharmacy Co Ltd.
Ranbaxy Guangzhou China was a joint venture between the Ranbaxy group, Baiyunshan Pharmaceutical Co and Hong Kong New Chemic. Ranbaxy itself is majority owned by Japan's Daiichi Sankyo.
"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," the company said in a release from Mumbai.
It did not, however, disclose any financial details for the transaction.
HNG is part of the large state-owned Hunan Nonferrous Metals Holding Group Co. With its main operations in Hunan province, it has a strong presence in the pharmaceutical ingredients business. With this transaction, HNG will gain entry in the field of pharmaceutical dosage forms, HNG said in a separate statement.