September 21 (SeeNews) - Slovenian drug maker Krka [LJE:KRKG] said on Thursday it plans to set up a joint venture in China to expand its presence in the Asian country.
Krka will hold a majority stake in the joint venture, the company said in a filing with the Ljubljana Stock Exchange without providing further details.
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In July, Krka said it had identified an unnamed acquisition target in China, in which the company could acquire at least 51% ownership share. The Chinese company possesses significant knowhow in the regulatory field and has production capacities for tablets, suspensions and injections. Its annual sales are less than 10 million euro, Krka said at the time.
The Chinese firm will serve Krka as a development base and as an entry point to the market of the Asian country, which can result in many opportunities in the next few years. Krka carried out a due diligence process in the Chinese company in May and June, the drug maker said.
Krka recorded a net profit of 91.7 million euro ($109.2 million) in the first half of 2017, up 31% on the year.