Sagent Pharmaceuticals is slated to acquire the remaining 50% interest of its joint venture partner, Chengdu Kanghong Pharmaceuticals, in a deal valued at $25 million. Once the acquisition is complete, Kanghong Sagent Pharmaceutical will become a wholly owned subsidiary of Sagent.
The Schaumburg, IL-based pharma said it initiated a joint venture with Chengdu Kanghong in 2006, looking to build and operate an FDA- and GMP-compliant manufacturing facility in China.
“Our partnership with Kanghong was instrumental in helping us navigate the construction and startup of this facility, which provided us with dedicated manufacturing capacity utilizing state-of-the-art isolator technology for aseptic filling,” Jeffrey Yordon, Sagent CEO, said in a statement. “Over the last couple of years, however, our business model has evolved and 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 acquisition, which is expected to be completed September 2015, is subject to approval by The Chengdu Hi-Tech Industrial Development Zone Bureau of Investment Services, among other conditions. Sagent said it “anticipates closing the transaction over the next several months.”