Hovione buys drug manufacturing facility in China

International API manufacturer Hovione has strengthened its 20-year presence in China and ramped up additional production capacity in the country with the acquisition of Hisyn Pharmaceutical Company.

The international group, which specialises in the development and compliant production of APIs has bought a 75% share in the company, includes the development labs in Shanghai and an active pharmaceutical ingredient (API) plant occupying 22,000 square meters.

Hovione's relationship with Hisyn started with the supply of intermediates will now produce Hovione's two largest volume products.The factory was commissioned in 2005 from a greenfield site.

"Hisyn represents an opportunity to both increase our manufacturing capacity and ensure a sustainable cost advantage," said Miguel Calado, chief finance officer. "We find it important to provide our current customers with an assurance of competitive supply over the long run; and in addition, we want to have a strong presence in new markets, such as Brazil, India and China, where price is decisive."

The plant based in the Macau region of China has five previous FDA inspections and more than 10 years of contract manufacturing relationships in China. The facility has enabled Hovione to effectively bridge cultures with China in areas of language, GMP, culture and business practices.

Luis Gomes, vice president of Generic, said: "Now is the right time for Hovione to acquire infrastructure in China and tap into a growing market and leverage China's manufacturing abilities. We are planning to invest further monies in 2008 to effectively double Hisyn's manufacturing capacity."