Sagent Pharmaceuticals will acquire the remaining 50% interest of its joint venture partner, Chengdu Kanghong Pharmaceuticals Co. Ltd., in the Kanghong Sagent (Chengdu) Pharmaceutical Corp. Ltd. (KSCP) joint venture. KSCP will become a wholly-owned subsidiary of Sagent. The $25 million acquisition, subject to customary closing conditions, is expected to close within the next several months.
"We originally formed our joint venture in 2006 to construct and operate an FDA and cGMP compliant, sterile manufacturing facility in Chengdu, China," said Jeffrey M. Yordon, chief executive officer and chairman of the board of Sagent. "Our partnership with Kanghong was instrumental in helping us navigate the construction and start-up of this facility, which provided us with dedicated manufacturing capacity utilizing isolator technology for aseptic filling. Over the last couple of years, however, we recognized that having full control of the facility better serves Sagent's long-term strategic goals, including a strategy of additional investment in product development and capacity expansion. The facility was inspected by the FDA in 2012 and has been deemed acceptable for product approvals, which we expect in 2013.”