News

 

EASTBOUND AND QIMING MERGE OPERATIONS

 

New cGMP manufacturing facilities to emerge

Shanghai, China (April 28, 2010)

Eastbound Synopharma (HK) Holdings Ltd. (“Eastbound”) of Hong Kong and the API Business Unit of Zhejiang Qiming Pharmaceutical Co., Ltd. (“Qiming”) of Shangyu in Hangzhou Bay area announce the merger of their development and manufacturing operations to form a new and more powerful partner to meet the increasing outsourcing needs of pharmaceutical customers. The merger agreement outlining the company structure and ownership was approved by the boards of directors of both companies and became effective March 29, 2010. The new company, Eastbound Pharma Ltd., will be headquartered in Shangyu focusing on the custom process development and manufacture of sophisticated ingredients for use in pharmaceuticals. Custom process development operations will remain at the Eastbound Shanghai Institute in Shanghai. Combined manufacturing operations, will continue at the Shangyu site, Zhejiang province and at Dafeng Eastbound Fine Chemicals in Dafeng, Jiangsu province. Additional pilot plant and manufacturing operations will be constructed at the Shangyu site, Zhejiang province for the purpose of cGMP manufacturing of late stage intermediates and active pharmaceutical ingredients.

Qiming’s Chairman, Qiming Zhang, considers this merger to be a major step forward for the new company. “Eastbound has created an exceptional process development team in Shanghai and is well positioned to help Western pharmaceutical companies to outsource their early stage development. The new company will combine Eastbound’s development expertise and their broader access to western pharmaceutical markets with our new cGMP manufacturing facility. This combination will offer our customers the strongest development team in the country.” Mr. Zhang is a founder of five other technology and manufacturing operations related to the Chinese healthcare industry and he will serve as the chairman of the new Eastbound Pharma Ltd.

Eastbound was founded in 2002 by Michael Zhang, the former head for the US office of the Chinese Ministry of the Chemical Industry. Eastbound was formed to create a company focused on providing western technologies and practices to western pharmaceutical companies from within a Chinese economy. “Western pharmaceutical companies are constantly bombarded with offers by Chinese companies to take on the complex chemistry needed for today’s newest drugs. Only those with the best scientists and up-to-date facilities can live up to western expectations. With this merger we will add a state-of-the-art cGMP facility necessary to provide those advanced intermediates and active ingredients for western pharmaceutical needs.” Michael Zhang will continue as the CEO of the new Eastbound Pharma Ltd.

Founded by Qiming Zhang in 1995, Qiming is a leading Shangyu-based manufacturing organization. Qiming is a leading producer of tetrachlorophthalic anhydride (TCPA) and downstream products including fluoroquinoline intermediates and APIs. Qiming has manufacturing operations in Shangyu employing over 400 people and offering over 500 cubic meters reactor capacity.

Eastbound Synopharma (HK) Holdings Ltd. is a leading provider of custom process development and contract manufacturing of ingredients used in pharmaceutical manufacturing. Operations include the Eastbound Shanghai Institute where more than 50 chemists and engineers provide custom process development. Dafeng Eastbound Fine Chemicals is a manufacturing division of Eastbound that provides scale-up and commercial manufacturing capability for non-cGMP intermediates and fine chemicals. Eastbound companies employ over 300 people and offer nearly 400 cubic meters reactor capacity in China to Western pharmaceutical companies.