SWISS drugmaker Roche Holding AG has given Shenzhen-based HEC Group the second license in China to produce a generic form of Tamiflu, an anti-viral medicine that could be used in treating bird flu.

The move is part of Roche's efforts to expand the global manufacturing network for its anti-flu drug to meet growing demand.

In December, Shanghai Pharmaceutical Group became the first manufacturer in China to acquire a license to produce the generic form of Tamiflu, known as oseltamivir.

The medicine will be supplied through government channels, the company said.

HEC is also entitled to extend the benefits of the agreement to its two affiliates, Yichang Changjiang Pharmaceutical Co in Hubei Province and Sunshine Lake Pharma Co in Guangdong Province.

Sunshine Lake said it expects to achieve annual production capacity of 2 tons, or 2 million treatments, of oseltamivir in the initial stage. HEC will later lift its capacity to 5 million treatments.

Roche said it should be able to produce up to 400 million treatments of the drug annually by the end of this year.

The increase in capacity by 100 million treatments will be achieved through the addition of external production partners identified over the past few months as well as expansion in Roche-owned facilities.