Joint-Venture Anti-Infectives DSM Anti-Infectives forms Joint-Venture With Sinochem
To strengthen its position on the global pharma market and especially in Asia, Dutch Royal DSM merged its anti-infectives in a joint venture with Chinese Sinochem.
Heerlen/The Netherlands; Beijing/China – Royal DSM and Sinochem team up in a global 50/50 joint venture for the anti-infectives business. The merger has, according to DSM, already been approved by regulatory authorities and customs. The new joint operations, under the name of DSM Sinochem Pharmaceuticals, will operate from a headquarter in Hong Kong and include all current DSM Anti-Infectives activities across the world.
In the process, Sinochem has taken a 50% equity interest in the business group for a total of € 210 millions. Cashflows in or out of the joint company will be shared equally among the partners. On balance DSM will report a book profit of approximately € 45 million after tax as a result of this transaction in the third quarter of 2011 as an exceptional item.
Stefan Doboczky, Member of the Managing Board of Royal DSM, and future CEO of DSM Sinochem Pharmaceuticals is confident sees the joint venture as "fully in line with DSM's stated strategy for its Pharma cluster: creating value via partnerships, but also further strengthens DSM's position in China." He expect benefits from the combination of DSM's global market position in anti-infectives and Sinochem's presence in China. "Sinochem's significant global market capability presents exciting future growth opportunities through combined technologies and access to customers, especially in the fast growing Asian economies," Doboczky says. Earlier this year, DSM announced a partnership of DSM Anti-Infectives with the Indian Arch Pharmalabs.
The joint venture follows an agreement, announced in December 2010. All current DSM employees in the company's anti-infectives business, in total around 2,000 people globally, are part of the new group.
Mr. Pan Zhengyi, Vice President of Sinochem Group said: "The establishment of DSM Sinochem Pharmaceuticals Limited will accelerate the application of its innovative biotechnology knowledge to improve and transform its business, so as to consolidate and enhance its global leading position in the field of anti-infectives. At the same time, we are confident that this is a very positive step for Sinochem and DSM in their respective ambition to apply biotechnology broadly, to help the advancement of human health with environmentally sustainable processes."