Tongde, a supplier to the company's Animal Health business, currently manufactures and markets zinc bacitracin with annual sales of approximately $5 million.

Following the acquisition, the company will continue to support the current customer base of Tongde while also exporting the product to other markets.

"This agreement establishes a second footprint for Alpharma in the important Chinese market", commented Dean Mitchell, President and Chief Executive Officer. "In 2006, we announced an agreement with Zhejiang Hisun Pharmaceutical Co., Ltd that will double the capacity of the company's largest and fastest growing Active Pharmaceutical Ingredient product, vancomycin, subject to the receipt of the required regulatory approvals.