Feasibility study for creation of joint venture on the basis of available facilities of JSC BZMP for production of medicines in form of injection solutions in ampoules
JSC BZMP consistently pursues policy of its development. The main purpose of this policy is the creation of a modern pharmaceutical factory of European level that should be competitive and distribute its products all over the world.
For this reason it is necessary to bring the plant to the GMP international pharmaceutical standard.
According to the GMP international pharmaceutical standard the production of medicines in form of injection solutions in ampoules should be placed in clean-rooms with range of purity in full compliance with international standard to the production clean-rooms.
For this reason it is necessary to reconstruct and reequip the current production in accordance with requirements of GMP standard.
The implementation of this project should contribute to creation of modern high-technology production in full compliance with high international standard.
The formation of the statutory Fund of the joint venture.
As a contribution to the statutory Fund of the joint venture JSC "BSE" passes production space and equipment ampoule workshop amounting to USD 23.3 million...
The investor funds the reconstruction of existing production facilities and purchasing of equipment in the amount of USD 40.0 million.
The authorized capital of the joint venture is supposed to form as follows:
Total collective investment fund –USD 63.3 mln. Participant’s quotas (shares):
JSC “BZMP” –USD 23.3 mln. – 36.8%
Foreign participant (Investor) – USD 40.0 mln. – 63.2%
Plan for implementation of creation of Joint Venture
JSC “BZMP”
1. hands over its existing production areas and equipment for production of solutions for injections in ampoules;
2. hands over the whole range of products in the form of solutions for injections.
Investor
1.funds the reconstruction of ampoule production in the form of direct investments;
2. offers a new range of medical products for production.
Formed Joint enterprise should be engaged in development of design and estimate documentation and should carry out works on reconstruction of the existing production.
After the reconstruction of the existing production the expected annual volume of production will be amounted 350 million ampoules.
Financial and economic indicators and the payback period.
According to preliminary forecastafterreaching the designed capacity, the annual production volume of the joint venture is expected at the level USD 42,1 million, the cost of annual production -USD 30,1 million.
Annual sales income is forecasted in the amount - USD 12.0 million, net profit–USD9.5 million.
In accordance with their contributions to the statutory Fund net income among participants should be shared as follows:
JSC "BZMP" - 36,8 % - USD 2.4 million;
Investor - 63,2 % to USD 7.1 million.
With the estimated amount of net profit expenses for renovation will be repaid within 5.6 years.
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