Dragon sells Chinese formulation business

Canadian drugmaker Dragon Pharmaceutical says that it has completed the sale of part of its formulation business to Hong Kong's C&Y Pharmaceutical Investment Holdings, as part of a series of deals which will also see Dragon deliver international registration documentation and services on a related product. The total selling price was $12.6 million, including $7.5 million in cash as well as a $5.1 million assumption of liabilities by the Chinese firm. Dragon estimates that it will recognize a pretax non-operating income of $4.5 million over the net book value of the assets sold during the third quarter of the year.

Deal transfers facilities, drugs and sales force

Under the completed transaction, the Canadian firm has transferred its formulation production facilities which are located in the Datong, China, Economic Development Zone. In addition, C&Y gains some 258 drug approvals from the Chinese State Food and Drug Administration (SFDA) which were held by Dragon, as well as the Canadian company's associated direct sales team.