Ranbaxy Laboratories (Ranbaxy) and HNG Chembio Pharmacy (HNG) have reported the transfer of Ranbaxy group’s entire shareholding in Ranbaxy Guangzhou China (RGCL) to HNG Chembio Pharmacy.
RGCL was a joint venture between the Ranbaxy group, Guangzhou Baiyunshan Pharmaceutical, China, and Hong Kong New Chemic, Hong Kong.
The 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 that China continues to be an important market for Ranbaxy and the company believes that this new approach will create greater value.
Reportedly, with this transaction, HNG is expected to gain entry in the field of pharmaceutical dosage forms, in which the company plans substantial further investments in the near future.