Taiwan (Standard Chemical)/ Japan (DIA) JV for deployment on hydrogel market in China

Standard Chemical, DIA team up for venture in China

By Amy Su  /  Staff Reporter   PATCHING UP:The joint venture will make a water-based pharmaceutical patch mainly for sale in China and will be located in China Medical City. Standard Chemical and Pharmaceutical Co Ltd (生達化學製藥) yesterday announced a 44 million yuan (US$6.73 million) joint venture deal with DIA Pharmaceutical Co Ltd, one of the largest pharmaceutical firms in Japan. The joint venture, which will be set up in China, will be 60 percent owned by Standard Chemical's subsidiary in Jiangsu Province, China, with DIA holding the remaining 40 percent, the company said. Tainan-based Standard Chemical was the first Taiwanese pharmaceutical firm to obtain a manufacturing license from the US Food and Drug Administration (FDA), and DIA Pharmaceutical is the largest medication fever patch manufacturer in Japan, Standard Chemical general president Roy Fan (范滋庭) said. "We are building a pharmaceutical factory in China Medical City located in Jiangsu's Taizhou, manufacturing a water-based pharmaceutical patch mainly for sale in China," Fan told a media briefing. China Medical City is a medical hub in China, with more than 400 international medical and pharmaceutical companies setting up their offices and plants there. Standard Chemical said the new venture would produce the pharmaceutical patch in the first phase as this product is widely used in China. "We expect construction of the new plant to be completed at the end of this year at the earliest, and to start mass production next year with a full-year manufacturing goal of 60 million patches," Fan said. He expects the venture's first-year sales will reach 2.5 billion yuan in China. The joint venture also plans to manufacture anticancer drugs and health foods in the future, Fan said, adding that Standard Chemical's Jiangsu subsidiary bought a 13,000 ping (42,975m2) plot of land in December in preparation for the long-term plans. Standard Chemical reported earnings of NT$194.03 million (US$6.7 million), or NT$1.24 earnings per share, in the first three quarters of last year, Taiwan Stock Exchange data showed. Revenues totaled NT$2.06 billion last year. The company posted NT$531.55 million in revenues in the first quarter, up 7.67 percent from a year earlier, data showed.