Matrix and Aspen, South Africa, finalize Strategic business relationship
Matrix Laboratories Limited, Hyderabad-India, and Aspen Pharmacare Holdings Limited, South Africa, executed the definitive agreements for a long-term business relationship between the two companies through the Joint Venture (JV) route. The agreements are in line with the strategic understanding reached by both the companies earlier.
As per the definitive agreements, Matrix Laboratories will transfer one of its Active Pharmaceutical Ingredients (APIs) manufacturing facilities, technology and Intellectual Property (IP) related to the manufacture of certain APIs to Astrix Laboratories Limited for a total consideration of US $ 36 million. The said facility, located near Hyderabad, has been approved by the US FDA and the World Health Organization (WHO), Geneva. This amount of US $ 36 million is expected to be received by Matrix on the closing date of the transaction i.e., January 1st 2006. Aspen Pharmacare will pick up a 50 per cent stake in Astrix (the Indian joint venture company) for a consideration of US$ 36.5 million.
Astrix Laboratories Limited (Astrix - the Indian JV company), will be the lead supplier of Anti-retroviral (ARV) APIs to Aspen. The capacity from the said facility is adequate to meet the ARV-API demand for the next few years and the facility also offers scope for modular expansion to meet additional demand for APIs. Astrix will have the technology and expertise to manufacture the multiple synthesis complex ARV APIs and these will be further finished into Dosage forms in the facilities of Aspen in South Africa.
As part of the agreements, Matrix Laboratories will pick up a 50 per cent stake in Fine Chemical Corporation (FCC), South Africa, for an investment of US $ 20 million, which will be paid on the closing date i.e., January 1st 2006. FCC, which is currently 100 per cent owned by Aspen, has a US FDA - approved API manufacturing facility in Cape Town. With an expertise in handling Oncology, Controlled substances and High Potency APIs, it has so far filed 25 DMFs with the US-FDA. The turnover of the company for the year ended June 2005 was US $ 27 Million.
The strategic relationship between Matrix and Aspen assumes significance in view of the huge business opportunity in the treatment of HIV/AIDS patients. While more than 45 million people are estimated to be infected with HIV/AIDS, about 40 per cent of the world's infected population requiring ARV treatment is in Sub-Saharan Africa (SSA). Aspen has a strong presence in SSA.
Other news from the department business & finance
These products might interest you
Pharmaceutical Substances by Thieme Verlag
Look up Industrial Syntheses of 2,600 APIs
Your tool for Syntheses, Patents and Applications – Pharmaceutical Substances
AZURA Purifier + LH 2.1 by KNAUER
Preparative Liquid Chromatography - New platform for more throughput
Save time and improve reproducibility during purification
Get the chemical industry in your inbox
From now on, don't miss a thing: Our newsletter for the chemical industry, analytics, lab technology and process engineering brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
Most read news
More news from our other portals
See the theme worlds for related content
Topic world Synthesis
Chemical synthesis is at the heart of modern chemistry and enables the targeted production of molecules with specific properties. By combining starting materials in defined reaction conditions, chemists can create a wide range of compounds, from simple molecules to complex active ingredients.
Topic world Synthesis
Chemical synthesis is at the heart of modern chemistry and enables the targeted production of molecules with specific properties. By combining starting materials in defined reaction conditions, chemists can create a wide range of compounds, from simple molecules to complex active ingredients.
