KARACHI: Citi Pharma Ltd (CPL) has entered into a joint venture with Hangzhou Newsea Technology Co Ltd, a renowned player in the Chinese pharmaceutical industry.

The JV, Etaci Ltd (a public limited company), will focus on producing the remaining active pharmaceutical ingredients (APIs) that CPL does not currently manufacture.

CPL currently manufactures approximately 20-22 APIs catering to various medical needs and will manufacture an additional 30 APIs through the proposed JV.

Under the legal structure of Etachi Ltd, Citi Pharma retains a 65 per cent controlling interest, while Hangzhou Newsea will hold 35pc.

As per stocl( filing by CPL on Tuesday, the JV is expected to generate an annual turnover of Rs15 billion.

By manufacturing a greater portion of APIs locally through Etachi Limited, City Pharma is poised to signiñcantly decrease its reliance on imported products, thereby improving cost efficiency, enhancing supply chain resilience and reducing the import bill, a move that is expected to drive substantial growth and profitability, the company said.