Novo Nordisk senior execs state that their strategy to build a presence in China is centered on developing innovative new therapeutics. Staying true to that aim, they'll continue to steer clear of any big acquisitions in the growing Asian market.
Ronald Frank Christie, president of Novo Nordisk (China) Pharmaceuticals, says "We are not interested in bringing in generic (products). We are only interested in bringing new drugs to the market, to make a difference."
Its $100 million plan to grow a sizeable R&D program in Beijing and to boost the ranks of its Chinese scientists to 200 is its biggest research effort outside of Europe. Recent market research indicates that the fast-growing number of diabetics in the country will help feed Novo's growth plans. The International Market Analysis Research and Consulting Group has estimated that the market for diabetes therapeutics will grow from $642 million to $2.8 billion in 2015. Novartis also has plans to grow its manufacturing base in China. See Fierce Biotech.
As an aside, this is just another example of Western Big Pharma investment in China -- development and manufacturing. It continually makes me question the wisdom of any pharma companies looking to eliminate China from their raw material supply chains. It seems evident to me that China will become a major manufacturing center and a quality local supply chain will be needed to support this. Efforts would be better placed to bring up local quality standards in manufacturing and quality assurance to support this obvious consequence (to me at least).
Posted by Bruce Lehr Nov 3rd 2011.
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