Shanghai. March 31. INTERFAX-CHINA - The World Health Organization (WHO) has appointed Zhejiang Hisun Pharmaceutical Co. Ltd. as an official supplier of the active pharmaceutical ingredient (API) capreomycin, the only company in China to be awarded the position, a company official told Interfax last Friday.

"We will probably begin supplying the API to preparations manufacturers around the world this year, after completing related applications," said the official, who wished to remain anonymous. He added that Hisun intends to launch its own capreomycin preparations on international markets within the next two years.

Capreomycin is a peptide antibiotic that is indicated for the treatment of tuberculosis in combination with other antibiotics..

Hisun's capreomycin technology was provided by U.S. pharmaceutical manufacturer Eli Lilly and Co. "Eli Lily has injected $4.38 million into the project for a four-year term," the official said. "Meanwhile, we have invested more than RMB 100 million ($14.27 million) into the project, including improving the technology and expanding our production capacity."

Eli Lilly will sell Hisun-produced capreomycin APIs and later, preparations, on the global market. Hisun will sell the products in China.

The new production base, which should be completed in 2010, will be used to produce between 3 million to 5 million doses of lyophilized powder for injection every year, though the official did not disclose the factory's annual capacity. "The majority of the investment capital has been put into establishing this factory."

Despite strong market demand and a number of domestic API manufacturers with State Food and Drug Approval production approval for the drug, few domestic manufacturers actually produce and sell capreomycin. "As an older generation drug, capreomycin products generate small profits," the official said.

Hisun is testing its own preparations at the moment, a stage that is expected to last between three to six months. The company expects to be ready to roll out its first commercial batches of capreomycin preparations by the end of this year, according to the official.

Capreomycin preparations may not be the company's first non-API product to appear on the global market. According to the official, the company is also developing other preparations for sale on the international market, though he would not release any details.

Established in 1956, Hisun is one of China's largest antibiotics and anti-tumor drug manufacturers, which is mainly engaged in the manufacture, research and development of APIs. Last year, the company generated sales revenues of RMB 2.84 billion ($405.14 million), up 22.81 percent on an annual basis, while net profit came to RMB 139.67 million ($19.93 million), representing a growth of 69.39 percent against the 2006 figure.