NEW YORK, NY -- (MARKET WIRE) -- 11/22/10
Aoxing Pharmaceutical (NYSE Amex: AXN) ("Aoxing Pharma"), a specialty pharmaceutical company focusing on research, development, manufacturing and distribution of narcotic and pain-management products, today announced the China State Food and Drug Administration (SFDA) granted a Manufacturing License to Hebei Aoxing API Pharmaceutical Company, Ltd., the joint venture between Aoxing Pharma and Macfarlan Smith Ltd, a wholly owned subsidiary of Johnson Matthey Plc.
With the Manufacturing License granted, Hebei Aoxing API Pharmaceucitcal Company submitted Business License application, to manufacture Naloxone Hydrochloride API product, to the China Administrative Bureau of Industry and Commerce.
Mr. Zhenjiang Yue, Chairman and CEO of Aoxing Pharma, commented, "We are pleased to have received notice granting us a Manufacturing License from the SFDA and remain on target to begin producing API for the Chinese market in 2011. The synergies from the venture with Macfarlan Smith continue to be promising. We are excited to further the development process and to help address the need in accessing the appropriate quality and quantity of API for the finished dosage narcotics in China."
Recently Aoxing Phjarma's chemical synthesis laboratories and pilot-manufacturing plant passed GMP inspection.
About Hebei Aoxing API Pharmaceutical Company, Ltd
The joint venture represents a significant new opportunity for both Aoxing Pharma and Johnson Matthey Plc. to expand their business in the rapidly growing pharmaceutical market in China.
Under the terms of the agreement, Macfarlan Smith Ltd, a wholly owned subsidiary of Johnson Matthey Plc, headquartered in the United Kingdom, contributes technology expertise and capital to the joint venture. Hebei Aoxing Pharmaceutical Group Company, Ltd ("Hebei Aoxing"), the operating subsidiary of Aoxing Pharma, contributes capital, fixed assets and related API manufacturing licenses. The joint venture company is called Hebei Aoxing API Pharmaceutical Company, Ltd. Hebei Aoxing has a 51% stake in the Company, while Macfarlan Smith (Hong Kong) Ltd (a wholly owned subsidiary of Johnson Matthey Pacific Ltd), holds 49%. Each company has equal representation on a board of directors that oversee a management team responsible for corporate strategies and operations.
The new joint venture is located on the Hebei Aoxing campus in Xinle City, 200 kilometers south west of Beijing. The total capital investment is projected to be approximately $15 million during the first five years. It will initially develop eight narcotic API products for the China market but its product range could potentially exceed 30 products.
About Aoxing Pharmaceutical Company, Inc.
Aoxing Pharmaceutical Company, Inc. is a US incorporated specialty pharmaceutical company with its operations in China, specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, outside Beijing, Aoxing has the largest and most advanced manufacturing facility in China for highly regulated narcotic medicines. Its facility is one of the few GMP facilities licensed for the manufacture of narcotic medicines by the China State Food and Drug Administration (SFDA). It has a joint venture collaboration with Johnson Matthey Plc to produce and market narcotics and neurological drugs in China. It also has strategic alliance partnerships with QRxPharma, Phoenix PharmaLabs, Inc. and American Oriental Bioengineering, Inc. For more information, please visit: www.aoxingpharma.com.