Matrix forms two JVs with SA-based Aspen

Matrix Laboratories and South Africa-based Aspen Pharmacare Holdings (APHL) have signed two separate memoranda of understanding (MoU) for two manufacturing units. This was announced in a release issued by Matrix to the BSE today.

"As per the first MoU, Matrix and Aspen will form a 50:50 JV in India, which will manufacture active pharmaceutical ingredients (APIs) required by Aspen. Matrix will licence technology relating to several APIs to the JV company on a non-exclusive basis. Aspen will meet its requirements of these APIs from the JV company," the release said.

According to the second deal, Matrix will pick up 50% stake in South Africa-based Fine Chemicals Corporation (FCC), which is currently 100% owned by Aspen.

"FCC has an API manufacturing facility in Cape Town, South Africa. The company has USFDA-approved manufacturing facilities, and has filed 25 drug master files (DMFs) with USFDA. The turnover of the company for the year ended June 2004 was ZAR 157 million ($23 million)," the release said.

FCC has expertise in handling oncology, controlled substances and high potency APIs, the release said.

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