Sagent Pharma, a leading manufacturer of injectable market, has announced that it would acquire the 50% interest of its joint venture partner, Chengdu Kanghong Pharmaceuticals (Group) Co. Ltd. in the Kanghong Sagent (Chengdu) Pharmaceutical Corporation Limited ("KSCP") joint venture, for $25 million, payable in installments through September 2015. Upon completion of the acquisition, KSCP will become a wholly-owned subsidiary of Sagent.
The joint venture was formed in 2006 to construct and operate an FDA and current Good Manufacturing Practices compliant, sterile manufacturing facility in Chengdu, China. The facility was inspected by the USFDA in 2012 and has been deemed acceptable for product approvals, which is expected in 2013. We are confident that this is an opportune time for Sagent to invest further in the facility to attain full control.