As part of its geographic expansion strategy, Baxter is expanding the development of its parenteral nutrition products in China to address emerging needs and improve access to care for patients, physicians and pharmacists. Baxter International and Guangzhou Baiyunshan Pharmaceutical (stock code: 000522) have formally established a joint venture to produce and sell parenteral nutrition products in China as Guangzhou Baxter Qiaoguang Healthcare. The company will be based out of Guangzhou, China.
Consistent with the agreement, announced in November 2006, the companies are participating in a 50/50 joint venture and are each investing between $65 and $70 million. Guangzhou Baiyunshan Pharmaceutical has contributed its existing parenteral nutrition manufacturing facility located in Guangzhou, China. Baxter will provide new product technologies, technical expertise, product line management and clinical and marketing support.
Parenteral nutrition products – used primarily by hospitals in clinical settings such as surgical, critical care, oncology and intensive care wards – are essential to overall patient health, healing and recovery. These products are administered intravenously to provide life-sustaining support for patients who cannot achieve adequate nutrition through other means.
The company will manufacture and sell current Baiyunshan parenteral nutrition offerings along with Baxter's nutrition products. Baxter's ClinOleic, an olive oil-based parenteral emulsion, and Clinimix, a dual-chamber bag parenteral solution are currently produced in Belgium. Baiyunshan's parenteral products will continue to be produced at the Guangzhou facility, which will gradually expand to include the production of Baxter's products.
"This joint venture is a strategic opportunity for both parties," said Mr Xie Bin, Chairman of Guangzhou Baiyunshan Pharmaceutical. "By combining our experience in the domestic parenteral nutrition market with Baxter's product pipeline and expertise, Chinese patients will receive a wider selection of quality parenteral products and a higher level of customer support."