Shanghai-based Lionco Pharmaceutical Group (SHA: 603669) has entered into a strategic partnership framework agreement with France’s Laboratoire Bailly-Creat, aiming to penetrate international markets. Under this collaboration, Lionco will manufacture GMP-compliant injection and solid preparation products from its portfolio at its Hainan manufacturing base for Bailly-Creat. The French company will take over the sales responsibilities for these products outside of China, with initial focus on Africa, Vietnam, and Cambodia.
The agreement begins with an Original Equipment Manufacturer (OEM) collaboration for Lionco’s omeprazole (40mg), a medication used to treat gastric disorders. This partnership comes as Lionco seeks to utilize its underutilized production capacity due to decreasing sales volumes of major products in recent years .
Laboratoire Bailly-Creat, established in 1908, has an extensive international sales network across more than 20 countries. This strategic move is expected to help Lionco expand its global footprint and explore new markets, while also improving the company’s performance and cash flow, which have been challenged over the past three years .
This collaboration signifies a significant step for Lionco as it leverages its manufacturing capabilities to meet the requirements of an established international player like Laboratoire Bailly-Creat. It also highlights the growing trend of Chinese pharmaceutical companies looking outward to expand their market reach and enhance their competitiveness on the global stage.- Flcube.com
