Cipla sets up JV in China as ‘crucial’ part of future roadmap

By Ben Hargreaves

- Last updated on GMT

(Image: Getty/Structuresxx)
(Image: Getty/Structuresxx)

Related tags Cipla Acebright China Copd

Cipla teams up with Acebright to create joint venture, which will involve the building of a manufacturing facility to produce respiratory products.

Cipla EU, a European subsidiary of the pharmaceutical company Cipla, announced a joint venture (JV) had been set up with Jiangsu Acebright to manufacture respiratory products for the Chinese market.

Cipla will take an 80% stake in the as-yet-unnamed venture while Acebright will hold the further 20%. The total investment in the project will be $30m (€26.9m).

Once the newly founded JV company is incorporated, the partners will work together to set up a manufacturing facility.

A spokesperson for Cipla told us that the site will be located in Jiangsu province, China, which is located north of Shanghai.

When asked about the decision to form the JV in China, the spokesperson told us, “[Cipla] sees China as a crucial part of our future roadmap.”

The aim is for the facility to be a ‘US FDA’ standard facility, which will have a ‘competitive advantage’ in the market due to Cipla’s experience manufacturing respiratory products, as well as the company having already managed multiple US Food and Drug Administration (FDA)-approved sites, the spokesperson added.

Though the initial focus will be on providing respiratory products to the local market, the spokesperson confirmed that the JV will look at building a wider portfolio of products, such as in oncology.

Cipla has identified the respiratory market as a key area to focus on due to the high incidence of respiratory illness in the country.

According to a study​, chronic obstructive pulmonary disease (COPD) is listed as one of the top three leading causes of death in China, with the cost of the disease judged to be high, in terms of economic burden and quality of life.

The joint venture between Cipla and Acebright follows shortly after a similar announcement was made by Celltrion and Nan Fung Group​, with the companies aiming to bring three biosimilars to market in the country, as more businesses look to enter the rapidly developing Chinese market​.

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