| By Cindy Wu, Asia Manufacturing Pharma |
| Monday, 21 September 2009 |
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Joincare Pharmaceutical Group, a major Chinese producer of
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prescription drugs, OTC medicines and health products, said that the company will apply to the Shenzhen Branch of Nanyang Commercial Bank for a one-year loan totaling no more than HK$25 million (approx US$3.2 million), in a move to expand its production capacity and improve its financial performance. The Shenzhen-based pharmaceutical company announced in July of this year plans to issue RMB700 million (approx US$103 million) worth of exchangeable bonds. The company will use RMB250 million (approx US$37 million) of the proceeds from the issue to support COS and FDA certifications of its meropenem APIs and preparations, while allocating RMB300 million (approx US$44
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million) for repayment of bank loans.
Since 2001, Joincare Pharmaceutical Group has been focused on its meropenem APIs and preparations certification program, which contributes approximately RMB100 million (approx US$14.7 million) to the company's net profit each year.
As meropenem will soon come off patent in Europe and the US, the company plans to export its meropenem APIs and preparations to these highly regulated markets.
The meropenem APIs and preparations certification program is expected to bring long-term benefits to Joincare Pharmaceutical Group. The company's meropenem APIs and preparations, which are mainly produced by its subsidiary Haibin Pharmaceutical, have been successfully introduced into the Belarusian and Vietnamese markets. Haibin Pharmaceutical is currently |
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busy with its capacity expansion and workshop improvement, with an aim of entering Europe and the US by obtaining COS and FDA certifications in 2010.
Joincare Pharmaceutical Group posted revenues of RMB1.67 billion (approx US$245 million) from core businesses for the first half of 2009, a year-on-year increase of 8.65 per cent. Operating profit grew 942 per cent to RMB413 million (approx US$60.5 million), and gross profit rose 906 per cent to RMB415 million (approx US$60.8 million).
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