Citi Pharma Limited, a key player in Pakistan’s pharmaceutical sector, has announced a significant joint venture (JV) with Hangzhou Newsea Technology Co. Ltd, aiming to bolster its Active Pharmaceutical Ingredients (API) manufacturing capabilities.
This strategic alliance marks a pivotal expansion, enhancing the company’s influence in the global pharmaceutical landscape.
The newly formed joint venture, dubbed ETACI Limited, will operate as a Public Limited Company. Its primary goal is to produce a range of APIs that are not currently part of Citi Pharma Limited’s portfolio, effectively broadening its scope and capacity in the pharmaceutical industry. This expansion is a direct response to the evolving healthcare needs and a growing demand for a more diversified range of pharmaceutical products.
Citi Pharma Limited has already established itself as a significant manufacturer, producing 20 to 22 different APIs used in various treatments and medications. With the new joint venture, the company aims to add an additional 30 APIs to its production line, a move that promises to considerably enhance its product offerings and competitive edge.
The collaboration with Hangzhou Newsea Technology Co. Ltd, a renowned entity in China’s pharmaceutical industry, brings not only an infusion of advanced technology but also a wealth of expertise to the table. This partnership is designed to leverage the strengths of both companies—Citi Pharma’s robust manufacturing capabilities and Newsea’s cutting-edge technological advancements. Together, they are set to foster innovation and improve efficiencies in API production.
Financially, the joint venture is poised for success. It is projected to generate an annual turnover exceeding Rs 15,000 million, with a cost of sales around Rs 10,500 million, leading to a substantial gross profit of Rs 4,500 million. The strategic use of Citi Pharma Limited’s existing infrastructure and resources will not only minimize operating costs but also streamline production processes, enhancing profit margins significantly.
This move is not just a business expansion but also a strategic maneuver towards the transfer of technology to Pakistan, highlighting Citi Pharma Limited’s commitment to not only growing its footprint but also contributing to the local economy and healthcare sector. By bringing high-quality, innovative API solutions to market, the company is set to reinforce its position as a trusted leader in the pharmaceutical industry.
The joint venture between Citi Pharma Limited and Hangzhou Newsea Technology is a testament to the dynamic and forward-thinking approach of both companies, ready to meet the challenges of modern healthcare demands and contribute positively to the wellbeing of communities they serve.
