Henan Topfond Pharmaceutical Co., Ltd (stock code: 600253) announced on August 14th, it will invest more 161.85 million Yuan on the second period project of Lincomycin HCL API. In September 2006 Topfond had invested 200 million Yuan and built up a Lincomycin HCL API facility with the production capacity of 600 tons. After the second period project finished, total production capacity of Lincomycin HCL can reach 1200 tons per year.

"We hope to improve enterprise's competitive power in APIs industry by expanding production scale." Topfond's relevant principal said, "moreover many APIs enterprise stopped production because of environment protection issues, and under the situation we hope to take the chance to enlarge the production and sale of APIs."

Along with the gradual increase of the demand for Lincomycin HCL finished drugs, now in China the yearly demand for Lincomycin HCL API has reached 2,800 tons from several hundred tons in mid 90's last century. At the same time, international demand also increases greatly. The export amount of Chinese Lincomycin HCL API is about 968 tons in 2006, and the amount of the firts half yeart of 2007 is 655 tons with a increasing trend. Lincomycin HCL is the material for the production of Clindamycin and its derivates. According to expert forecast, international demand for Clindamycin and its derivates will reach 1,000 tons by 2010, and just for this, the demand for Lincomycin HCL can reach more than 1,500 tons.