Ranbaxy Laboratories, India's largest drug maker, is planning to set up a joint venture in China to manufacture active pharmaceutical ingredients (APIs) used in drug manufacturing. 

We are currently talking to two-three large API manufacturers from China and also evaluating various other options. It is too early to divulge more details and name of the companies, said Naresh Kumar, senior vice-president, API research and manufacturing business, Ranbaxy Laboratories, on the sidelines of CPhI Worldwide, the annual pharmaceutical exhibition at Milan. 
 
He said currently majority of the APIs produced by Ranbaxy were used for internal consumption and the joint venture in China would be part of the move to expand its API capacity. 
 
Ranbaxy already has three API manufacturing facilties in India and a good share of raw material are sourced from China. 
 
Most of the leading Indian drug makers have either JV or own subsidiary in China, though very few companies have succeeded in their China foray. Some of the recent joint ventures include the NCPC-Orchid joint venture to make cephalosporins, Granules India with Hubei Biocause Heilen Pharmaceutical Company and Aarti drugs with Huanggang Yinghe Pharmaceutical. 
 
Ranbaxy was among the earliest Indian pharmaceutical companies to enter the Chinese market through a joint venture ?Ranbaxy Guangzhou China Ltd (RGCL), started in 1993. Later, Ranbaxy increased its stake in the company which manufactures and sells finished drugs. It currently supplies over 35 products to over 4,000 hospitals in China through an extensive agency network of more than 150 agents. Its generic versions of ciprofloxacin (an antibiotic) and simvastatin (an anti-cholesterol drug) were among the market leaders in China, said sources.