7 Chemicals JV with South Africa to run PSU drug-manufacturing
company, hospital
Posted AtPharmaBiz
7chemicals, an Ahmedabad-based
exporter of pharmaceutical raw material, finished formulations
and chemicals, has entered into two joint venture agreements
with the Ministry of Health of the South African Government
to run a medium sized EC certified pharmaceutical company
in Botswana and to set up a 200 bedded super speciality
hospital in South Africa.
Disclosing this to Pharmabiz, Rakesh, director, 7chemicals
said the MoU was signed with the health ministry officials
of the South African Government during the first week
of November. 7chemicals aims to manufacture about 20
essential formulations and antibiotics in the field
of anti-retroviral, gastro-enterology, anti-malarial
etc., besides utilising the facility for repacking medicines
like omiprezol and ranitidine with international quality
standards. The company would also supply some semi-finished
formulations from India, which would be packed in the
factory for re-exports to EU nations.
At present the five-year-old public sector company,
the lone drug manufacturing facility in the Botswana
region, manufactures a few essential formulations required
for the local market. The Indian partner will provide
necessary modern technical know-how to manufacture the
formulations and will supervise the manufacturing process,
besides helping to market the production. The JV is
aimed to make the company a leading supplier of drugs
in 14 countries in the South African region, besides
exports and re exports to European Union nations.
In another JV, 7chemicals has taken over a 200-bedded
hospital in South Africa. The hospital will have about
15 specialty sections like oncology, pathology, cardiology,
ICU, paediatrics, gynaecology, orthopaedics, haematology
etc. Around 100 doctors and paramedical staff would
be appointed. Recruiting has already begun, including
a majority from India, informed Rakesh. The hospital
is scheduled to take off by the end of January 2006.
Rakesh said that 7chemicals would be investing about
US $ 2.5 million each in both the facilities and expects
additional revenue of about US $ 5 million in the first
year of operation. Further, 7chemicals has agreed to
the health ministry to contribute 5% of their profits
from the joint venture in South Africa towards HIV patients
in the form of free ARV drugs.
As reported in Pharmabiz recently, 7chemicals had bagged
contract-manufacturing deals worth over Rs.9 crores
from Russia, Yemen and Croatia. The company has significant
presence in Russia and other CIS countries, Philippines
and Latin America, including six joint ventures for
drug supply.
7 Chemicals is into manufacturing a wide range of APIs
and formulations like artemisinin albendazole, amlodpine
besylate, ampicillin, azithromycin, alprazolam, cephalaosporins,
as well as statins and enzymes, anti-diabetics, anti-cancer,
anti-asthmatics, steroids etc. The company has been
working with Indian counterparts like Aarti Drugs, Unichem,
Saraca, Synthokem, Lincoln Pharma, Granulels India,
Krebs, Indswift, Kairav and many others. With warehouses
in Frankfurt, Germany and Moscow, 7 Chemicals has is
in contract-manufacturing business for the last 3-4
years.
December 06, 2005 |
