Actavis has exited its stake in a Foshan, Guangdong-based subsidiary to Zheijiang Chiral Medicine Chemicals Co. The stake sale comes a week after the firm's chief said the market in China is much too risky for the pharmaceutical firm, according to Pharma Times.
The financial terms for the sale of the holding in Actavis (Foshan) Pharmaceutical Co were not disclosed. The Chinese subsidiary is a joint investment with Foshan Chanbende Development. The said venture produces antibiotics for the treatment of digestive and cardiovascular disorders, the report detailed.
The transaction follows Chief Executive Officer Paul Bisaro's interview with Bloomberg where he said China is a risky place to conduct business. With the firm's limited presence in the Asian country, Bisaro said "it wasn't worth the aggravation, the frustration or the concern."
Recently, Actavis has also entered an agreement to sell its generic drug businesses in France, Portugal, Italy, Belgium, Netherlands, Germany, and Spain. The operations in the seven European countries are to be sold to India-based Aurobindo for €30 million, Pharma Times reported.
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