January 10, 2008

Explosion at China's Xinchang Pharma halts Vitamin A production

An explosion at Zhejiang Medicine Co., Ltd (Xinchang Pharma) was reported yesterday, interrupting the company's production of Vitamin A feedgrade.

Production of Vitamin E feedgrade was also believed to be indirectly affected by the incident.

Xinchang Pharma is the sole producer of both Vitamin A and Vitamin E in China.

The company's share price in the Shanghai Stock Exchange has fallen by 2.31 percent today.

In 2006, Swiss pharmaceutical giant, Novartis, signed an agreement with Xinchang Pharma for the company to supply US$25.89 million worth of coartem to Novartis.

Xinchang Pharma ranks third in the world in terms of output and sales of Vitamin H (biotin) and kitasamycin.