Aurobindo Pharma s arm Helix Healthcare BV will form a joint venture in China to manufacture nebuliser inhaler and other products for China, U.S. and EU markets.

Helix, the company s wholly-owned subsidiary in The Netherlands, has entered into an agreement with Chinese firm Shandong Luoxin Pharmaceutical Group Stock Co. Ltd. to form a joint venture in China, the drug maker said on Tuesday.

Manufacturing units

The JV would have manufacturing facilities to make nebuliser inhaler products for the China, U.S. and EU markets.

It will undertake contract manufacturing for non-nebuliser inhaler products.

Commencement of commercial production by the joint venture firm is expected during 2021, the company said in a regulatory filing. The estimated total project cost, including working capital for the JV company, would be $50 million.

 The percentage of shareholding in the JV company will be 30% and 70% between Helix and Luoxin [respectively], Aurobindo Pharma said.

Helix will invest $15 million and Luoxin $35 million in the form of equity in a phased manner. Luoxin has the right to appoint three directors, while Helix can appoint one director in the proposed JV.

For Europe markets, the proposed JV  would establish fully-owned subsidiaries in any of the European countries .