Zhejiang Medicine Signs Long-Term Supply Contract With Hospira

Zhejiang Medicine has signed a supply contract with Hospira, an American specialty pharmaceutical and medication delivery company. Under the agreement, Zhejiang Medicine will provide Hospira vancomycin hydrochloride raw materials from April 30, 2008 to Dec. 31, 2017, with an expected total amount of $120 million. Taking into consideration the fluctuating Chinese yuan renminbi and U.S. dollar exchange rate, both sides have decided on the May 1, 2007 rate of $1 to 7.7 yuan as a benchmark. However, if the fluctuation exceeds 10 percent and lasts 90 days, both sides will adjust the value according to the new exchange rate at that point in time. (Click her for more - Chinese language)