German pharmaceutical companies to increase investment in China

German pharmaceutical industry leader Bayer and Merck are to their respective Chinese businesses to invest, because the two companies are taking advantage of a new wave of investments and acquisitions to compete for global market share.

China's pharmaceutical market is growing rapidly, with total market reached $ 102 billion, will soon be ranked the world's second-largest pharmaceutical market after the United States.

In September of this year, Merck invested $ 80 million in a new factory in Nantong, Jiangsu broke ground, and in the last year, the company has expanded its partnerships with the Chinese focus on cancer drugs biopharmaceutical research company Baekje Divine . Merck is a large scale than competitors Bayer has announced a plan that will be $ 100 million investment in its Beijing Pharmaceutical Factory. A month ago, Bayer also announced the acquisition of Yunnan Rainbow Pharmaceutical Group, but did not disclose the specific amount of the transaction, which is the second large-scale mergers and acquisitions pile Bayer conducted in the Chinese market.

In order to meet the needs of an aging society, the Chinese government is committed to improving the availability of health care and medical services, while Western pharmaceutical companies have had responded, Bayer and Merck is one of only two representatives.

However, overseas drug manufacturers want to enter the Chinese market is not easy, because of China's drug approval process is slow, strict regulatory standards and increasingly fierce international competition. The two German companies are currently utilizing their high quality reputation of the pharmaceutical and willing to share relevant technical track record, seeking to gain an advantage in competing for market share in China in the process.

"Germany has a very good brand recognition in the Chinese market." McKinsey's German subsidiary in charge of the pharmaceutical business, Thomas ? Rudolph (Thomas Rudolph) said. Compared with the US pharmaceutical company, the German drug dealers in addition to a cash investment in the Chinese market will also be more willing to develop their own technology to China, Rudolph said.

According to Deloitte Statistics data show that China's pharmaceutical market is growing at 15% per annum growth. Rudolph noted that this market has become large enough that Western visitors so far have not yet really started "Bull." For example, Pfizer Oncology from the United States is a leader in the field, while Bayer is a leader in the field of diabetes treatment.

Bayer's pharmaceutical sales last year of 112 million euros (Human AsAb ELISA Kit http://www.cusabio.com/ELISA_Kit-114542/), where sales from the China market share of approximately 10%. Bayer will be published in Thursday's quarter ended September 30 earnings report, analysts expect this quarter in the company's overall pharmaceutical sales and pharmaceutical sales in China have increased.

President of Bayer HealthCare prescription drug China / Hong Kong region Kangluo Ke (Alok Kanti), said the company's goal is to keep the "three or top four transnational" druggist's position on the Chinese market. He also said that despite China's pharmaceutical market is very promising, but the market also brings great challenges. For example, the regulatory hurdles means that if you want to launch a new drug in the Chinese market, then in general than the time required to launch the same product in the US market more than a maximum of four years.

At the same time, overseas drug manufacturers want to perform follow the standard in China has also become costly, especially after so GSK involved in bribery scandal even more so. Chinese government in this British drug dealers last month fined $ 490 million, and the judgment it toward Chinese doctors and hospitals to promote their products bribery charges. GlaxoSmithKline declined to comment, but had quoted the September release of a letter of apology, said the company "fully investigated the facts and evidence."

In addition, Western drug companies also face competition from low-priced products to local companies. Partner of Deloitte China sector ? Mike Brown (Mike Braun) pointed out, you want to fight with these local companies, Bayer and Merck and other companies' need for local production for the local market "in order to gain an advantage in regulation.