Granules India takes stake in Chinese firm

By Emilie Reymond

- Last updated on GMT

Related tags: Ibuprofen, Non-steroidal anti-inflammatory drug

Granules India and Biocause have signed an agreement to create a 50
: 50 joint venture entity to manufacture and sell pharmaceutical
APIs (Active Pharmaceutical Ingredients), starting with Ibuprofen.

Formulation manufacturer Granules India has acquired a 50 per cent stake in Chinese pharma company Biocause and the joint venture entity, to be known as Granules Biocause, will absorb Ibuprofen API manufacturing assets of Biocause.

Hubei Biocause Heilen Pharmaceutical is the fourth biggest Ibuprofen manufacturer and exporter in the world.

Ibuprofen is a NSAID, or nonsteroidal anti-inflammatory drug. NSAIDs are widely prescribed pain relievers that include such over-the-counter medications as Aleve, Advil and Motrin.

"We understand their [Granules] strong business model built on pharmaceutical formulation intermediates (PFIs) and recognise the strength that we, as API manufacturers, will derive out of this partnership,"​ said Xiao Yunhua, director API of Hubei Biocause.

"We are proud to be associated with this new wave in the industry."

PFIs are pre-processed blends that are ready to be compressed into tablets, filled into capsules or form into liquid dosages.

It is similar to bulk drug intermediates where bulk drug manufacturers do the final steps of synthesis from outsourced intermediates.

Granules has pioneered the manufacture and propagated the use of PFIs for the generic prescription drug, and branded and generic over-the-counter (OTC) medicine markets.

The company boasts clients like Sanofi Aventis, Wyeth and Pfizer and its 7,200-tonne PFI facility at Gagillapur near Hyderabad is said be the biggest in the world.

The facility has two granulation lines, for high shear and fluidised granulation and produces large batch size PFIs that will result in significant savings in costs for customers, according to the firm.

"Biocause is one of the most sophisticated manufacturing sites that we have come across in China,"​ said Krishna Prasad, Granules' managing director.

"Their high levels of GMP compliance, in addition to their capability to manufacture Ibuprofen for Europe and the United States, will provide us a strong manufacturing base in China for high volume APIs."

Prasad added that this move was in line with Granules' overall strategy of offering end-to-end solutions to companies on OTC products.

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