Biotech firm TCI Co (大江生醫) on Monday announced that it is forming a manufacturing partnership with NewAge Inc, a US health products company.
Under a memorandum of understanding (MOU) signed by the two firms, NewAge would sell its 50,000m2 manufacturing facility and office in Utah to TCI, which would use it as its US headquarters, the company said in a statement.
The facility would allow TCI to serve its US clients more efficiently, it said, adding that it would take over production as early as the fourth quarter.
TCI would provide NewAge with a combination of US$3.5 million in cash and a share of the facility’s revenue over the next five years, NewAge said in a news release.
The partnership between the two companies is subject to further negotiation, NewAge added.
“This is a great deal for both TCI and NewAge, and we expect this to be just the beginning of a long-term, very successful partnership,” NewAge senior vice president of operations Phil Lewis said in the news release.
“TCI brings incredible technology and manufacturing expertise to the venture, enabling NewAge to focus on leveraging its sales and marketing capabilities, and global distribution network,” he said.
TCI, which is listed on the Taiwan Stock Exchange, develops and produces health supplements, beverages and skincare products.
The company reported that revenue in the first half of the year increased 6.83 percent year-on-year to NT$4.29 billion (US$153.23 million), while earnings per share were NT$3.25 in the first quarter, up from NT$3.13 a year earlier.
Capital Investment Management Corp (群益投顧) said that the deal reflected TCI’s intention to increase its presence in the global health food market, as its revenue in Europe and the US has risen yearly.
“With the large and stable growth taking place in the US health food market, TCI originally planned to build a factory in the US. However, given the US’ strict environmental and fire regulations ... the company changed its strategy and decided to acquire NewAge’s manufacturing facility instead,” Capital Investment said in a note.
The MOU would also allow TCI to benefit from NewAge’s global sales network and 400,000 exclusive distributors, Capital Investment said, adding that it has a positive outlook regarding the company’s diversified business and resource integration.
TCI shares yesterday fell 1.55 percent to close at NT$254.5 in Taipei trading.
Additional reporting by staff writer
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
RSS