Chennai-based Orchid Chemicals and Pharmaceuticals Ltd on Friday announced that it was exiting its 50:50 manufacturing joint venture in China.
The company would transfer its 50 per cent stake in its JV firm, NCPC-Orchid Pharmaceuticals, to NCPC for a total cash consideration of $13.9 million (RMB 87.5 million), which is around Rs 76.19 crore as per Friday's currency rate.
K Raghavendra Rao, chairman and managing director of Orchid Pharma said,
Moreover, the products that the JV manufactures and markets in the local Chinese market have reached a mature stage resulting in flat growth prospects going forward. Hence, it was a prudent decision to relinquish our stake to the partner and exit the JV."
The company, in 2002, had entered into a 50:50 JV with North China Pharmaceutical Corporation (NCPC) to set up a Cephalosporin API manufacturing facility located in Shijiazhuang, China.