CHINA LEX PHARMA LAW NEWSLETTER
Vol. 2 , No.33 - December 19, 2001
TOPICS THIS ISSUE:
- GlaxoSmithKline Follows Merck and Bristol in Cutting AIDS Drug Prices
- Foreign Direct Investment in the China Pharmaceutical Industry
- Asia's Largest Stem Cell Industrial Base Under Construction in Tianjin
- China Incorporates Pharmaceutical Industry into WTO Rules
- Drug Retailing and Wholesaling to Fully Open by 2003
- List of China GMP Facilities (Continued)
GlaxoSmithKline Follows Merck and Bristol in Cutting AIDS Drug Prices
The recent moves by Merck and Bristol-Myers Squibb to decrease the price of its AIDS drugs for sale in China have encouraged GSK to do the same.
After a Ministry of Health meeting late in November, Merck stated that it would reduce the wholesale prices of its two drugs Crixivan and Stocrin by one-third. This means, excluding import tax, value-added tax and other distribution costs, that the wholesale price of the drugs would be slashed to just less than US $2,000 for a one year supply.
Bristol-Myers Squibb reported that in early November, they had volunteered to lower the price of their drugs Zerit and Videx by 30%.
Li Heng, the GSK director of corporate affairs for China and Hong Kong, said that they are likely to follow suit once the GSK head office approves the move. During the meeting with the Chinese MOH, she said they "clearly expressed willingness" to cut the prices of their drugs Combivir and 3TC.
Last year, GlaxoSmithKline decided to offer its HIV anti-retroviral therapy in China at a discount of more than half the wholesale price in the U.S.
All three companies have been holding discussions with the MOH trying to reach agreements on price cuts. Shen Jie, the Director of the China National Center for AIDS Prevention and Control, hopes to lower the price of the drugs even further. She said that the ideal price for the drug cocktail would be US $350 a year, around the same price for generic drugs in India.
With the recent entry of China into the WTO, the government does not wish to infringe on the patents of western pharmaceutical companies. However, Shen Jie said that China will consider such a move if the drug prices are not brought down to a satisfactory level.
(Source: AFX-Asia)
Foreign Direct Investment in the China Pharmaceutical Industry
Despite the potential strength of the pharmaceutical industry in China, the industry will undergo much restructuring and changes as a result of WTO entry.
Industry analysts predict that the number of enterprises will be reduced by roughly one third in five years. It is widely thought that the domestic pharmaceutical industry is not competitive enough. Of the 5,000 pharmaceutical companies in China, there are presently 1,800 joint ventures, of which some, like Pfizer and Bayer, have already firmly established themselves in the market and obtained a clear understanding of the market.
Chinese-foreign joint ventures produce or import 40 of the top 50 best-selling drugs in China. This success is partly due to the policy of acquiring Chinese drug makers, creating branches and entering the market through the use of cooperative enterprises.
Another popular vehicle for investment is setting up a research and development center in order to take advantage of infrastructure and presence once the restrictions are lifted.
(Source: Asia Pulse)
Profitable China GMP Facility for Sale
Send email to mail@chinalaw.cc for further information. |
Asia's Largest Stem Cell Industrial Base Under Construction in Tianjin
Construction of the largest and most advanced stem cell transplant center in Asia has started in Tianjin. The stem cell products industrial base, consisting of a stem cell bank, a transplant center and a stem cell engineering development center is slated for full capacity in 3 years.
The stem cell transplant center is the first of its kind in China and is one of the national high technology development programs. RMB 300 million has been invested in the center that will occupy over 4 hectares of land. It is hoped that in 3 years the base will be able to store 500,000 stem cell packets and provide for on-site treatment of patients.
Although China is quickly becoming a highly knowledgeable player in the stem cell industry, the need to put the knowledge to clinical use is recognized. The construction of the stem cell industrial base may just provide the right impetus to encourage growth in the stem cell industry in China.
(Source: BBC Worldwide Monitoring)
China Incorporates Pharmaceutical Industry into WTO Rules
It is hoped that the newly implemented Pharmaceuticals Control Law will bring about a long-sought transformation of China's medicine industry.
The revised law went into effect December 1 after two and a half years of deliberations since the past amendments to the Pharmaceuticals Control Law were officially launched in October 1998. Zheng Xiaoyu, director of the State Drug Administration (SDA), said the implementation of the new law, coming shortly before China formally becomes a member to the World Trade Organization (WTO), is perfectly timed to help bring the domestic pharmaceutical industry in line with WTO rules.
"The economic and social changes following China's WTO entry have brought about many new demands for the pharmaceutical sector. Therefore, we have performed 'major surgery' on the former Pharmaceuticals Control Law," Zheng said.
He said the number of provisions in the new law is now nearly double the amount in the original law and only two provisions remained unchanged.
Observers and analysts have pointed out that the domestic pharmaceutical industry will face great challenges after China's WTO accession.
It is necessary to keep the administration of high-quality medicine in line with international standards if domestic pharmaceutical enterprises are to participate equally in global competition with their foreign counterparts, Zheng explained.
(Source: Xinhua News Agency)
Drug Retailing and Wholesaling to Fully Open by 2003
Yu Mingde, deputy director of the Economic Operation Department of the State Economic and Trade Commission (SETC), said that the pharmaceutical distribution sector in China will completely open up by the year 2003.
Yu Mingde said the PRC government during the WTO entry bilateral negotiations agreed that foreigners would be permitted to operate both retailing and wholesale businesses in the country.
He also said that the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) is responsible for ensuring that foreign companies, with approval, are allowed to set up JVs in order to gain entry into the pharmaceutical retailing business.
In order to set up a joint venture, a foreign partner must have an annual sales volume in excess of US $2 billion for three years or total assets exceeding US $200 million prior to the application for a joint venture. The Chinese partner, depending on the geographical location, must have assets exceeding US $3.75 million one year before the application or annual sales volume exceeding US $25 million for three years.
(Source: Asia Pulse)
China Pharma Distribution Company for Sale
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List of China GMP Facilities (Continued)
Name of Enterprise | Certified Scope |
501.Shangdong Lukang Pharma GroupSaite Co., Ltd. | Tablet, capsule, granule |
502.Changchun Changsheng Gene Pharma Co., Ltd. | Recombinant interferon a2a, recombinant interferon a1b |
503. Cian Huitian Blood Product Co., Ltd. | Blood product |
504. Xina Pharma Co., Ltd by Shares | Freeze-dried powder-injection , powder-injection (penicillin), high dose injection (Cephalosporin) |
505. Beijing Sanyuan Gene-engineering Co., Ltd. | Recombinant interferon a1b |
506. Hezhou Yishute Pharma Co., Ltd. | Lotion |
507. Baoji Huaxi Pharma Co., Ltd. | Tablet, capsule, syrup, oral liquid |
508. Shanxi Yabao Pharma Group Co., Ltd. | Tablet, capsule, granule |
509. Shanxi Taihang Pharma Co., Ltd. | Tablet, capsule, granule, oral liquid, high dose injection, low dose injection |
510. Xinjiang Pharma Factory | High dose injection |
511. Shandong Lukang Pharma Group Luyuan Co., Ltd. | Powder-injection, tablet, capsule, granule |
512. Shandong Lukang Chenxin Pharma Co., Ltd. | High dose injection, low dose injection |
513. Zhejiang Hailisheng pharma Co., Ltd. | Freeze-dried powder-injection |
514. Hunan Tianyulong Pharma Co., Ltd. | Freeze-dried powder-injection |
515. Huabei Pharma Co., Ltd. by Shares | Powder-injection (penicillin, cephalosporin) |
516. Xian Lijun Pharma Co., Ltd. by Shares | Powder-injection (cephalosporin) |
517. Shandong Duanyang Pharma Co., Ltd. | Bulk drug, injection (penicillin) |
518. Fuzhou anti-biotics Group Co., Ltd. | Powder-injection (cephalosporin) |
519. Suzhou Yiliang Pharma Co., Ltd. | Powder-injection (penicillin, cephalosporin) |
520. Shijiazhuang 2nd Pharma Factory | Powder-injection (penicillin, cephalosporin) |
521. Xian Disai Bio-pharma Co., Ltd. by Shares | Freeze-dried powder-injection |
522. Haikou Qili Pharma Co., Ltd. | Powder-injection (cephalosporin) |
523. Beijing Huaerfu Pharma Co., Ltd. | Tablet, capsule, granule |
524. Guizhou Xinbang Pharma Co., Ltd. by Shares | Tablet, capsule, granule |
525. Xian Zhongfa Pharma Chemical Co., Ltd. | Soft capsule |
526. Jiangsu Hengrui Pharma | Tablet |
527. Lianyungang Haosen Pharma Co., Ltd. | Tablet, capsule |
528. Lianyungang Haosen Pharma Co., Ltd | Granule |
529. Hebei Pharma (Group) Co., Ltd. | Powder-injection (penicillin, cephalosporin) |
530. Zhejiang Jiafeng Pharma Co., Ltd. | Powder-injection (cephalosporin) |
531. Shijiazhuang Pharma Group, Shijiazhuang 1st Factory | Injection (cephalosporin) |
532. Zhejiang Gongtai Pharma Co., Ltd. | Tablet, capsule |
533. Shenzhen Haibin Pharma Co., Ltd. | Powder-injection (cephalosporin) |
534. Shenzhen Haibin Pharma Co., Ltd. | Freeze-dried powder-injection (penicillin) |
535. Shanghai Jiusheng Medical Product Co., Ltd. | Exosomatic diagnosis agent |
536. Wuhan Binhu Shuanghe Pharma Co., Ltd. | High dose injection |
537. Shannxi Kangle Pharma Factory | High dose injection |
538. Tonghua Dongbao Pharma Co., Ltd, by Shares | Tablet, capsule |
539. Shanghai Clone Bio-tech Co., Ltd. | Recombinant human interferon g |
540. Livzon Group Livzon Bio-engineering Factory | Recombinant human interferon g |
541. Sichuan Yibin Wuliangye GroupYibin Pharma Factory | Low dose injection |
542. Zhejiang Zhenyuan Pharma Co., Ltd. | Freeze-dried powder-injection |
543. Suzhou 1st Pharma Factory | Bulk drug |
544. Suzhou 1st Pharma Factory | Freeze-dried powder-injection |
545. Suzhou 1st Pharma Factory | Powder-injection |
546. Fujian Anxi Pharma Co., Ltd. | High dose injection |
547. Gannan Foge Tibet Pharma Co., Ltd | Capsule |
548. Guizhou Fuhua Pharma Co., Ltd. | Capsule, granule |
549. Yunnan Baiyao Group Co., Ltd. by Shares | Capsule, granule, tablet, inhalant |
550. Huabei Pharma Group, New Drug Research and Development Center | Freeze-dried powder-injection |
Lehman Lee & Xu
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