Schering-Plough Takes Sole Possession of Its China JV

Schering-Plough Corporation (SGP) bought the 45% of its majority-owned China JV, Shanghai Schering-Plough Pharmaceutical, that it did not already own. Its former partners, Shanghai Pharmaceutical Group and Shanghai Pharmaceutical Industry Corporation, put the 45% stake up for sale in May, saying they wanted to streamline their business into fewer subsidiaries. At the time, the two companies were asking 66.3 million RMB ($9.6 million) for their stake. Schering-Plough did not disclose the final price.

Schering-Plough representatives portrayed the acquisition as an expansion of the company’s involvement in China. Established in 1994, the JV manufactures, markets and distributes allergy and skincare products. In China, Schering-Plough is active in the therapeutic areas of allergy/respiratory, cardiovascular, central nervous system, skin care, oncology, infectious diseases, and women's health.

The JV, which employs more than 1,000 people in China, posted a net profit of $500,000 in 2007 after two years of losses. It was formed two years after Schering-Plough opened its first offices in China cities, though the company has been selling pharmaceuticals in the China market since the 1980s.

Disclosure: none.