Unigene and SPG to expand Chinese joint venture
Unigene Laboratories in Fairfield, New Jersey, and the Shijiazhuang Pharmaceutical Group are broadening their joint venture activities with the creation of a biotechnology research institute in China.
Unigene Laboratories in Fairfield, New Jersey, and the Shijiazhuang Pharmaceutical Group are broadening their joint venture activities with the creation of a biotechnology research institute in China.
The SPG-Unigene Biotechnology Research Institute will continue ongoing registration activities for Unigene's calcitonin products used to treat osteoporosis, develop biopharmaceutical manufacturing facilities compliant with US current Good Manufacturing Practice guidelines, and establish and supervise the creation of a new pharmaceutical distribution network for joint venture products in China.
Unigene will maintain its 45% ownership position in the joint venture.
"The creation of the institute should allow for the addition of potential new revenue-generating products and programs to our joint venture distinct from calcitonin, thereby expanding our commercial opportunities in China," said Unigene president and ceo Dr Warren Levy.
He added that the creation of the institute would also help the companies take advantage of "rapidly growing market potential for biotechnology products in China" and apply for government funds to support the joint venture programmes.
The combined capital investment commitment for the joint venture will remain at $15m. Unigene's initial cash contribution to the joint venture will remain at $900,000, which will be paid by Unigene upon the satisfaction of certain conditions, while the majority, or possibly all, of its remaining contribution will be in the form of technology.