Posts tagged ‘Pharmaceutical industry’

28/06/2016

Pfizer to invest $350 million in China biotech hub, first in Asia | Reuters

Pfizer Inc (PFE.N) will invest $350 million to build a biotech center in China, the latest in a series of moves by pharma industry giants to set up shop in the world’s no. 2 drugs market with the aim of securing faster approvals for their products.

The facility in eastern Hangzhou region – Pfizer’s first biotech center in Asia – is expected to be completed by 2018, the firm said in a statement on Tuesday.

Global “Big Pharma” is increasingly looking for smart ways to tap China’s healthcare market, estimated by consultancy IMS Health to be worth around $185 billion by 2018. From investing in China facilities to acquisitions, licensing deals and joint ventures, the aim is to seek an edge in dealings with domestic regulators and government.

John Young, group president for Pfizer’s essential health division, said in the statement that the Hangzhou facility should “help support China’s aim to increase the complexity and value of its manufacturing sector by 2025”.

Pfizer said it would “work closely” with local regulators to bring the drugs “to market as soon as possible”. The center will mostly on biologic drugs – made from living micro-organisms rather than chemically synthesized – and lower-cost ‘biosimilars’, of generic versions of biologics.

Pharmaceutical executives have long complained about the slow process of getting drugs to market in China, while others have run up against regulatory roadblocks. Pfizer had to close its vaccine business in the country last year after a license for its top-selling vaccine Prevenar was not renewed.

China’s overall healthcare spending is set to hit $1.3 trillion by 2020, but drug market growth has slowed to a low single-digit percentage pace from over 20 percent just four years ago as branded generics have lost their shine and Beijing has looked to drive down prices to keep a lid on costs.

Source: Pfizer to invest $350 million in China biotech hub, first in Asia | Reuters

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03/04/2015

A New Cancer Drug, Made in China – China Real Time Report – WSJ

Xian-Ping Lu left his job as director of research at drug maker Galderma R&D in Princeton, N.J., to co-found a biotech company to develop new medicines in his native China. As the WSJ’s Shirley S. Wang reports:

It took more than 14 years but the bet could be paying off. In February, Shenzhen Chipscreen Biosciences’ first therapy, a medication for a rare type of lymph-node cancer, hit the market in China.

The willingness of veterans like Dr. Lu and others to leave multinational drug companies for Chinese startups reflects a growing optimism in the industry here. The goal, encouraged by the government, is to move the Chinese drug industry beyond generic medicines and drugs based on ones developed in the West.

Chipscreen’s drug, called chidamide, or Epidaza, was developed from start to finish in China. The medicine is the first of its kind approved for sale in China, and just the fourth in a new class globally. Dr. Lu estimates the research cost of chidamide was about $70 million, or about one-tenth what it would have cost to develop in the U.S.

“They are a good example of the potential for innovation in China,” said Angus Cole, director at Monitor Deloitte and pharmaceuticals and biotechnology lead in China.

China’s spending on pharmaceuticals is expected to top $107 billion in 2015, up from $26 billion in 2007, according to Deloitte China. It will become the world’s second-largest drug market, after the U.S., by 2020, according to an analysis published last year in the Journal of Pharmaceutical Policy and Practice.

via A New Cancer Drug, Made in China – China Real Time Report – WSJ.

23/07/2013

First U.S. citizen detained as China pharma probe spreads

First crackdown on party members and officials, now on commercial organisations.  China‘s anti-corruption campaign gathers pace.

Reuters: “The first U.S. citizen has been detained in China in connection with probes sparked by an unfolding corruption scandal in the drugs industry, as China widens the range of international firms and staff under the spotlight.

A Chinese national flag flutters in front of a GlaxoSmithKline (GSK) office building in Shanghai July 12, 2013. REUTERS/Aly Song

Police have also questioned two further Chinese employees from drug maker AstraZeneca in Shanghai, after a local sales representative was taken away for questioning earlier.

And China’s health ministry said 39 hospital staff would be punished for taking bribes from drug companies.

The unnamed American is the first U.S. citizen to be detained in connection with the investigations, and the second foreign national, after a British risk consultant linked with GlaxoSmithKline was held last week.

GSK has been accused by China of funneling up to 3 billion yuan ($489 million) to travel agencies to facilitate bribes to doctors and officials.

“We are aware that a U.S. citizen has been detained in Shanghai. We are in contact with the individual and are providing all appropriate consular assistance,” U.S. embassy spokesman Nolan Barkhouse said on Tuesday, when asked about the involvement of U.S. citizens in the widening probe.

He declined to say which company the individual was associated with.

The latest moves by Chinese officials underline the country’s tough stance on corruption and high prices in the pharmaceutical industry, as it unrolls wider healthcare access and faces an estimated $1 trillion healthcare bill by 2020.

“Momentum is gathering and if you are a big international firm, then you’re a good example to be held up. This is a wake-up call for the rest of the industry,” said Jeremy Gordon, director of China Business Services, a risk management company focusing on China.

AstraZeneca said that the Shanghai Public Security Bureau had asked on Tuesday to speak with two line managers linked to the sales representative questioned earlier.

“The Public Security Bureau is describing this as an individual case. We have no reason to believe it is related to other investigations,” the company said in the statement.

via First U.S. citizen detained as China pharma probe spreads | Reuters.

01/06/2013

Sun Pharma Keeps Expanding Overseas

WSJ: “A bid by India’s Sun Pharmaceutical Industries Ltd.  to acquire Swedish drug maker Meda AB  for as much as $5 billion, could be a big plus for Sun, say stock analysts in India.

Mumbai-based Sun Pharma, which makes generic versions of patented drugs including those used for cancer treatment, has been the best performer on India’s benchmark Sensex’s 30-share index this year.

The stock has gained 42% this year to close at 1045.50 rupees ($18.45) a share on Friday. In comparison, Sensex is up only around 3% since the beginning of the year.

Analysts say a big acquisition that expands Sun Pharma’s product offerings would help it grow further. Already, Sun Pharma generates more than 70% of its total revenue from overseas units.”

via Sun Pharma Keeps Expanding Overseas – India Real Time – WSJ.

25/02/2013

* Pfizer Seeks Alliances in China

WSJ: “New York-based Pfizer Inc.,  the world’s largest drug company, plans to forge more alliances in China as pharmaceutical companies combat shrinking margins in one of the world’s fastest-growing health-care markets.

image

“We’re open for collaboration,” said Wu Xiaobing, Pfizer’s country manager for China, noting that he is looking for partnerships in the research, manufacturing and marketing of drugs. “If we were alone, it would take such a long time to make our drugs accessible to patients.”

Foreign drug makers are increasingly turning to local partners to expand their access in China, among Asia’s most promising pharmaceutical markets. They are also facing a big wave of patent expirations globally.

Pfizer already has a joint venture in the world’s second-largest economy with Zhejiang Hisun Pharmaceuticals to develop generic drugs, which dominate China’s pharmaceutical sales. Pfizer also has a minority investment in Shanghai Pharmaceuticals Holding Co.,one of China’s largest drug distributors, and its animal health division has a JV with China’s Jilin Guoyuan Animal Health Co. for animal vaccines.

Meanwhile, Merck & Co , the world’s second-largest drug company, recently formed a joint venture with China’s Simcere Pharmaceutical Group  to develop and sell drugs.

“You can expect to see more momentum going forward,” said Jin Wang, a Shanghai-based partner at McKinsey & Co. “Both multinationals and locals are excited by the growth potential in this market, and they are all facing limitations in terms of their portfolio and capabilities, so they’re teaming up.”

via Pfizer Seeks Alliances in China – WSJ.com.

17/09/2012

* Boots in China pharmaceuticals deal

FT: “Just months after striking a £10bn deal to sell eventually the whole of Alliance Boots, chairman Stefano Pessina has taken a minority stake in a Chinese pharmaceutical wholesaler.

Alliance Boots

Alliance Boots (Photo credit: Wikipedia)

Alliance Boots said on Sunday that it had spent £56m to acquire a 12 per cent holding in Nanjing Pharmaceutical, the fifth largest pharmaceutical wholesaler in China by sales.

It comes hard on the heels of Mr Pessina’s deal in June to initially sell a 45 per cent stake in Alliance Boots to Walgreens, with the option for the US pharmacy chain to buy the whole of Alliance Boots.

Mr Pessina said the latest acquisition would give Alliance Boots “a further presence in China”.

Nanjing Pharmaceutical, which is listed on the Shanghai Stock Exchange, had sales of about £2bn in 2011. Alliance Boots said it had a strong market position in its home province of Jiangsu, operating distribution centres in 12 cities across eight provinces.

Alliance Boots already has a position in China through its joint venture with Guangzhou Pharmaceuticals, the sixth largest pharmaceutical wholesaler in China, which operates in complementary geographies.

“Together they represent more or less 5 per cent of the Chinese market, [which is] not negligible,” said Mr Pessina.

He said Alliance Boots was keen to develop its position in China, because it was a big market, which was likely to consolidate over the coming years. “We must be part of this consolidation process,” said Mr Pessina.

As well as seeking a presence in the US, Mr Pessina has long been keen to build Alliance Boots’s reach in China.”

via Boots in China pharmaceuticals deal – FT.com.

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