Shanghai Kehua Bio-engineering and bioMerieux (Euronext: BIM) establish a Shanghai-based joint venture to which bioMerieux will transfer microplate immunoassay manufacturing currently located at its Boxtel site in the Netherlands.
bioMerieux will hold 60% of the capital in the joint venture and Kehua will hold 40% of the capital in the joint venture. This alliance brings together Kehua's strong manufacturing and development capabilities with bioMerieux's expertise in immunoassays and infectious disease diagnostics.
The microplate line manufactured by the joint venture will be distributed by bioMerieux in the Europe, Middle East and Africa, Asia Pacific (including China) and Latin America regions.
The two companies are also exploring opportunities for bioMerieux to distribute Kehua's diagnostics through its extensive global network as part of a broader, long-term partnership.
"bioMerieux is a world famous company in the field of diagnostics, with extensive experience and strong global reputation. The cooperation will benefit both parties from brand image, sales network and complementary products pipeline," stated Tang Wei Guo, Board Chairman of Kehua.
"Kehua is the market leader in Chinese diagnostics, with a proven track record of providing high quality, cost-efficient products," stated St¨¦phane Bancel, Chief Executive Officer of bioMerieux. "Microplate immunoassays play an important role in public health. The alliance with Kehua will enable bioMerieux to provide this product line to our customers at a competitive price, thanks to an improved cost structure," he added.
The transfer of manufacturing will be made progressively during 2008 and 2009 until the Dutch site's closure. This follows a decision communicated earlier in January to transfer other Boxtel site activities to locations in France.
About Shanghai Kehua Bio-engineering
A leading developer, manufacturer and marketer of diagnostics in China for over 20 years, Kehua has a significant and growing presence in China with its rich scale production experience, extensive pipeline of products and good brand image. Kehua is listed on Shen Zhen Stock Exchange, China. Other information can be found at www.skhb.com.
About bioMerieux
Advancing Diagnostics to Improve Public Health
A world leader in the field of in vitro diagnostics for over 40 years, bioMerieux is present in more than 150
