Sino Harbour Bio Technology Limited, a wholly-owned subsidiary of the Group, entered into a joint venture agreement with Zhejiang University of Technology Assets Operation Limited (“Uni Assets Ltd”) and Irvine Pharmaceutical Services, Inc. on 15 December 2015 to establish a new company named “Zhejiang IPS Pharmaceutical Technology Co., Ltd.” (“Zhejiang IPS”) in the PRC to expand its pharmaceutical inspection business.
Zhejiang IPS will establish a service centre for pharmaceutical services including third-party pharmaceutical testing, customized synthesis, prescription technology, new drug research, drug safety evaluation and clinical trial in the PRC and the Asian-Pacific region, and ensure the pharmaceutical centre pass the relevant FDA inspection and/or audit so that the Pharmaceutical Centre will be qualified to issue testing and analytical reports according to the regulations promulgated and enforced by the FDA. Subject to FDA’s satisfactory review, the pharmaceutical centre will be one of the first batch of approved qualified laboratories in the PRC.
Zhejiang IPS will establish a trading platform to assist pharmaceutical products from the PRC to enter into the markets in the United States of America, Canada and the European Union; provide pharmaceutical quality standards and third-party arbitration services; provide Chinese enterprises with training on the relevant services and standards of the FDA; provide Chinese pharmaceutical manufacturers with FDA application and advices; and establish branches in major pharmaceutical-focused areas in the PRC to expand its market share.
In addition, the Collaborative Innovation Centre of Yangtze River Delta Region Green Pharmaceuticals (“YRD Innovation Centre”) and Zhejiang University of Technology shall cooperate with Zhejiang IPS to increase its influence and market share as well as provide sufficient technology and human resources support to the company. Zhejiang IPS has integrated various technologies and resources and is committed to developing a top-class CRO platform in the PRC in the short term and ultimately becoming a top-class CRO platform in the world.
In September 2017, the Group acquired equity interest in Jiangxi LongYu Medicine Co., Ltd., with pharmaceutical enterprises as its upstream partners, which is expected to generate synergies with Zhejiang IPS. The Group believes that the rapid-growing pharmaceutical industry has huge market demand and potential. With the increase in the demand for high-end pharmaceutical services in the PRC market and the launch of favourable government policies for third-party inspection institutions, the Group’s healthcare business will fully capture business opportunities to realize rapid expansion and broaden sources of revenue. In view of the strong background and support of the joint venture partners, the Group is confident in the development of its healthcare business.