In addition, subsequent to the year end of 2007, the Company has increased its annual production capacity for 7-ACA and Clavulanic Acid by 30% and 56% respectively in order to meet rising customer demand.
With the expansion of our product portfolio alongside increased annual production capacity for our core products 7-ACA and Clavulanic Acid, we are confident in our ability to accomplish growth in revenues and profitability to maximize shareholder value.
100% of the 7-ACA
and 90% of Clavulanic Acid produced during 2005 were sold.
88 million in capital expenditure for the 7-ACA facility and other new production infrastructure (power, steam, purified water supply and water treatment).
Subsequent to the quarter end, the Company has increased the production of 7-ACA from approximately 30% to 80% of the full production capacity which will increase the sales and margin from the Chemical Division.
We expect that this trend will continue as the Company has increased the production level of the 7-ACA facility from approximately 30% to 80% of the full production capacity starting the end of July 2005," said Mr.
As a result of the acquisition, Dragon has transformed itself into a diversified and growth oriented generic pharmaceutical company with three key business units: (1) the Pharma division for 44 generic prescription, over-the-counter and sterilized bulk drugs; (2) the Chemical division for bulk pharmaceutical intermediates and active pharmaceutical ingredient (Clavulanic Acid and 7-ACA
, Abamectin); and (3) the Biotech division for recombinant drugs (EPO and G-CSF).
Alexander Wick, our President, to provide leadership in the European business development for Dragon especially for the Company's Biotech division's EPO and other chemical and intermediate products, such as Clavulanic Acid and 7-ACA
, from the Chemical Division.
Chemical Division: - Commenced operations of the brand new Clavulanic Acid and 7-ACA production facilities during the first and third quarters of 2004 respectively.
Chemical Division Commencement of the two Chemical Production Facilities; Receipt of Import License for 2 Clavulanic Acid Products from the Indian Health Authority; Initial Shipment of 7-ACA and 2 Clavulanic Acid Products to Indian Customers Started.
These products are organized under 3 distinct business divisions: a Pharma division for prescription and over-the-counter generic drugs, a Chemical division for bulk pharmaceutical chemicals such as Clavulanic Acid, 7-ACA
and sterilized bulk drugs, and a Biotech division for EPO and in-licensed G-CSF.
If the proposed acquisition is consummated, the combined company will have diverse and proven product lines under 3 divisions: a Pharma division for prescription and over-the-counter generic drugs, a Chemical division for bulk pharmaceutical chemicals such as Clavulanic Acid, 7-ACA
and sterilized bulk drug production, and a Biotech division for EPO and in-licensed G-CSF.