Ranbaxy Laboratories said on Tuesday it has sold its entire stake in Chinese joint venture, Ranbaxy Ghuangzhou China, to HNG Chembio Pharmacy Co Ltd for an undisclosed amount.
Ranbaxy Ghuangzhou China is a joint venture formed in 1993 between the Ranbaxy group, Guangzhou Baiyunshan Pharmaceutical Company Ltd, China and Hong Kong New Chemic.
"This transaction will help Ranbaxy in consolidating the overall global manufacturing operations by bringing synergies and in reducing complexities in production," a spokesperson of Gurgaon-based company told PTI.
Ranbaxy had only a single manufacturing unit in China through RGCL. Now it will supply drugs to the market from other global production sites.
"China continues to be an important market for Ranbaxy and the company believes that this new approach will create greater value," Ranbaxy said.
This transaction is part of Ranbaxy's endeavour to develop a new business model for China which entails the marketing of value added pharmaceutical formulations and the consolidation of manufacturing operations, for cost synergies, it added.
Ranbaxy had entered into the joint venture in 1993 and started production in 1995, which only caters to the local market.
