China Meditech Pays $3.3 Million for R&D Facility

by Richard Daverman, PhD
ChinaBio Today



Building in Zhang Jiang High-Tech Park in Shanghai

Hutchinson MediPharma Ltd., a division of Hutchinson China Meditech Ltd. (London: HCM) (see story), purchased for $3.3 million the R&D facility in Shanghai it currently occupies. The building, which is located in Zhang Jiang High-Tech Park, currently is home to the 120 scientists and staff who work for China Meditech. It has the capacity to expand to house 300 employees.

Hutchinson MediPharma has been leasing the facility since 2004. When the company signed its original lease, an option was included for the purchase of the property at this price. The 5,204 square meter facility currently has a market value estimated at $5.6 million.

Hutchinson MediPharma was the first foreign R&D company to move into the ZJ Park. Hutchinson China Meditech, the parent company, is itself majority owned by Hong Kong’s Hutchinson Whampoa, Ltd. Hutchinson Whampoa owns 72% of China Meditech’s shares. Unlike Hutchinson Whampoa, the pharmaceutical division’s operations are entirely in mainland China.

Christian Hogg, Hutchinson’s Chief Executive Officer, was quoted as saying the purchase will help lock in the low-cost operating structure of its R&D operations.

Hutchinson China Meditech trades on the London Exchange. It has $66 million in cash and a market capitalization of $889 million.



RELATED READING:
- Chi-Med Rumoured Close to Signing Major Deal
- Shijiazhuang Pharma Bought by Legend, Goldman Sachs
- Foreign Investment in China Grows in 2007



ChinaBio Today is a regular contributor to BioHealth Investor
_______________