Hovione has purchased 75% of Hisyn Pharmaceutical Co. Ltd. The acquisition “provides Hovione with significant drug substance manufacturing production capacity and strengthens its 20-year presence in China,” according to a company statement. The acquisition includes both development labs in Shanghai and an active pharmaceutical ingredient (API) plant occupying 22,000 square meters on a 22-acre plot employing 181 staff. Hovione’s relationship with Hisyn started with the supply of intermediates, but this factory, which was commissioned in 2005 from a greenfield site, will now produce Hovione’s two largest volume products.

“Hisyn represents an opportunity to both increase our manufacturing capacity and ensure a sustainable cost advantage. We find it important to provide our current customers with an assurance of competitive supply over the long run; and in addition we want to have a strong presence in new markets, such as Brazil, India and China, where price is decisive,” said Miguel Calado, Hovione’s chief financial officer.

Luis Gomes, Hovione’s vice president of Generics, was responsible for the investment and integration process. He remarked, “When we first came to the Canton fair in 1979 we were buying raw-materials that would be processed in Macau or in Portugal. For many years we felt we’d be better off being an important client of Chinese plants through contract manufacturing deals, because at that time there many JVs going very wrong. Now is the right time for Hovione to acquire infrastructure in China and tap into a growing market and leverage China’s manufacturing abilities. We are planning to invest further monies in 2008 to effectively double Hisyn’s manufacturing capacity.”

The Zhejiang provincial authorities have already issued the necessary business license and the joint venture (JV) is now operational.