| By Daisy Zhang, Asia Manufacturing Pharma |
| Friday, 16 May 2008 |
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China’s Zhejiang Medicine announced on 8 May that the company has recently signed a long-term supply contract with US-based Hospira Inc., the world’s largest consumer of vancomycin hydrochloride active pharmaceutical ingredients (APIs). |
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According to the contract, Zhejiang Medicine will supply vancomycin hydrochloride APIs to the US-based company from 30 April of this year until 31 December 2017, with an estimated contractual value of some USD 120 million.
Zhejiang Medicine is a major manufacturer of APIs and |
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preparations in China producing fluoroquinolones, vitamins and antibiotics.
The company received US FDA approval for its vancomycin hydrochloride APIs in December 2007, allowing their products to enter US markets. In addition, Zhejiang Medicine’s vancomycin APIs posted a year-on-year increase of 70.4 per cent in sales for 2007, with vancomycin injections up 55.8 per cent. With the pharmaceutical producer’s expansion into overseas market, the vancomycin product line will significantly add to the maker’s profits.
Global demand for vancomycin hydrochloride runs between 30 and 40 tons, and demand is increasing. In addition, with the increased |
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demand for vancomycin for clinical use in cities across China, the antibiotic is experiencing strong growth. According to analysts, Zhejiang Medicine’s Xinchang subsidiary, with a well-established process for production of vancomycin hydrochloride APIs and preparations, will be able to produce 10 tons of vancomycin APIs and 300,000 bottles of preparations a year.
In addition, Zhejiang Medicine, which leads China and the world in output volume of vitamin E and H products, will benefit most from the recent price rise for the two products. This, combined with the contract awarded by Hospira, will speed up the company’s expansion in international markets. |
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