Actavis has announced plans to sell its stake in its Chinese subsidiary just days after telling investors the country is 'too risky' for new investments.
In a statement published on its website earlier today Actavis said that it has agreed to sell its stake on its subsidiary in Foshan China to local firm Zhejiang Chiral Medicines Chemicals Co.
The site produces antibiotics and other products for use in the treatment of the digestive and cardiovascular system in a variety of dosage forms include tablet, soft gel capsule, hard capsule, oral solution, dry suspension, ointments and liniments.
Actavis established the manufacturing facility in collaboration with Foshan Chanbende Development, which will share ownership with Chiral when the transaction is completed.
The generics firm said it intends to continue further commercial operations in China in collaboration with its preferred business partners.
Sigurdur Oli Olafsson, president of Actavis Pharma, said: “Our operations in Foshan were limited in scope and we believe that their value will be better capitalised by Chiral, which will add manufacturing and marketing capabilities allowing them to expand their portfolio and position in the Chinese market.”
China not business friendly, CEO
News of the deal comes just days after Actavis CEO Paul Bisaro described China as “too risky” a place for the firm to make any more investments for the time being.
He told analysts at the JP Morgan Healthcare Conference that: “It is not a business friendly environment,” Bisaro said.
“If we’re going to allocate capital, we’re going to do so where we can get the most amount of return for the least amount of risk. And China is just too risky.”
News of the agreement also comes just a week or so after Actavis said it would sell some of it manufacturing facilities in Europe to contract manufacturing organisation (CMO) Aurobindo.