Granules India Signs MoU with Biocause of China

Granules India Ltd on October 12, 2006 has announced that it has signed a Memorandum of Understanding (MoU) with Hubei Biocause Heilen Pharmaceutical Company (Biocause) of China. The Company is acquiring a 50 per cent stake in a Joint Venture entity to manufacture and sell Pharmaceutical APIs, starting with Ibuprofen. Hubei Biocause Heilen Pharmaceutical Co. Ltd. is one of the biggest Ibuprofen manufacturers and exporters in the world.

Under the agreement, the manufacturing assets of Biocause, located in Jingmen (Hubei province of The People's Republic of China) and currently manufacturing Ibuprofen, will be transferred to the Joint Venture entity, where both Companies will hold a 50:50 stake. The Company will be responsible for the development and growth of the market for the products manufactured by the Joint Venture entity.

The Company's Managing Director, Krishna Prasad added, "Biocause's facility is one of the most sophisticated manufacturing sites that we have come across in China. Their high levels of GMP compliance, in addition to their capability to manufacture Ibuprofen for Europe and the United States, will provide us a strong manufacturing base in China for high volume APIs. This move is in line with our overall strategy of offering end-to-end solutions to Companies on OTC products."

Source : Equity Bulls

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