Matrix, South Africa-based Aspen form JVs

The Hyderabad-based Matrix Laboratories Limited and Aspen Pharmacare Holdings Limited, South Africa, have forged a strategic alliance for further strengthening of their respective businesses by forming joint ventures in India and South Africa.

As part of this alliance, both the companies have signed two separate memoranda of understandings (MoUs) to enable them to hold cross-country ownership in two pharmaceutical manufacturing units through joint venture (JV) route.

As per the first MoU, Matrix and Aspen will form a 50:50 JV in India, which shall manufacture Active Pharmaceutical Ingredients (APIs) required by Aspen. Matrix would license the product technology relating to several Active Pharmaceutical Ingredients (APIs) to the JV company on a non-exclusive basis. Aspen will uplift its requirements of these APIs from the JV company.

As per the second MoU, Matrix will pick up a 50 per cent stake in Fine Chemicals Corporation (FCC), South Africa, which is currently 100 per cent owned by Aspen. FCC has an API manufacturing facility in Cape Town, South Africa. This company has US FDA approved manufacturing facilities and has filed 25 DMFs with the US-FDA. The turnover of the company for the year ended June 2004 is ZAR 157 Million (US $ 23 Million).

FCC is the leading API manufacturing company in South Africa. FCC has expertise in handling Oncology, Controlled substances and High Potency APIs. There is no overlap between the products of FCC and Matrix.

"The strategic alliance that we have formed with Aspen Pharmacare is very significant and will go a long way in further strengthening our overall API business. In addition, this alliance will also give Matrix a strategic presence in South Africa," said N Prasad, the chairman and CEO of Matrix.

Aspen Pharmacare is Africa's largest pharmaceutical manufacturer and a major supplier of branded and generic pharmaceutical products to the southern African and selected international markets. With a total group turnover of US $ 321 million and net profit of US $ 52 million for the year ended June 2004. Aspen is listed on JSE Securities Exchange South Africa (JSE) with a market capitalization of over US $ 1.3 Billion