One Drug Maker That’s Moving Manufacturing Out of China

ChinaLots of big drug makers have been pushing into China lately. Eli Lilly’s adding jobs there even as it makes cuts in the U.S.; Novartis is spending $1 billion to expand an R&D facility in Shanghai; and Pfizer has made a couple deals to study and sell drugs in China.

But at least one drug maker is moving in the other direction: Ranbaxy, the big Indian generics shop, said it’s getting out of a joint venture with a state-owned company to manufacture drugs in China. The partnership, established 16 years ago, was one of the first Sino-Indian joint ventures, the Financial Times notes.

Ranbaxy will still sell drugs in China, but the company is consolidating manufacturing as part of a series of cost-cutting measures. The company has also cut staff in some markets, Dow Jones Newswires says.

Last year, the Japanese drug maker Daiichi Sankyo bought a controlling share in Ranbaxy, shortly before Ranbaxy ran into trouble with the FDA. Daiichi Sankyo took a write-down of nearly $4 billion on the deal.

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