CHINA LEX PHARMA LAW NEWSLETTER
Vol. 2 , No.31 - November 23, 2001
TOPICS THIS ISSUE:
- Top Ten List of China's Pharmaceutical Companies
- Danish Pharmaceutical Company Sets Up Factory to Manufacture Insulin
- China Talks with Merck and Glaxo to Cut Prices of AIDS Drug
- GlaxoSmithKline Produces and Sells Hepatitis B Drug in China
- Unigene Joint Venture Plans to Sell Calcitonin for Osteoporosis in China
- List of China GMP Facilities (Continued)
Top Ten List of China's Pharmaceutical Companies
The following companies are the top ten drug manufacturers in term of sales revenue in the first half of this year:
Ranking | Name |
1 | North China Pharmaceutical Group Company Ltd. |
2 | Harbin Pharmaceutical Group Corporation |
3 | Shijiazhuang Pharmaceutical Group |
4 | Shandong Xinhua Pharmaceutical Group Corporation |
5 | Xian-Janssen Pharmaceutical Ltd. |
6 | Yangzijiang Pharmaceutical Group |
7 | Tianjin Zhongxin Pharmaceutical Group |
8 | Shanghai Leiyun Pharmaceutical Company Ltd. |
9 | Northeast China Pharmaceutical Group Corporation |
10 | Wuxi Sanhe Group Ltd. |
The following companies are the top ten drug manufacturers in term of profits in the first six months of this year:
Ranking | Name |
1 | Xi'an-Janssen Pharmaceutical Ltd. |
2 | Harbin Pharmaceutical Group Corporation |
3 | Yangzijiang Pharmaceutical Group |
4 | North China Pharmaceutical Group Company Ltd. |
5 | Shijiazhuang Pharmaceutical Group |
6 | Jilin Xiuzheng Pharmaceutical Group |
7 | Shenzhen Taitai Pharmaceutical Company Ltd. |
8 | 999 Pharmaceutical Company Ltd. |
9 | Shenzhen Wanji Pharmaceutical Company Ltd. |
10 | Nanjing Pharmaceutical Group |
According to statistics, RMB 96.2 billion in sales revenue was generated by China's 3,900 pharmaceutical enterprises within the first half of this year. RMB 33.65 billion of that came from the top 60 enterprises, which accounted for 35 percent of total sales revenue. Profits generated from China's pharmaceutical industry came to RMB 7.58 billion, with RMB 3.9 billion being generated from the top 60.
(Source: Xinhua News Agency)
Danish Pharmaceutical Company Sets Up Factory to Manufacture Insulin
Denmark's largest project in China, Novo Nordisk (China) Biotechnology Co. Ltd., is a world-level biomedicine manufacturer in insulin and industrial enzymes in the Tianjin Development Zone with a total investment of US $ 243 million in 1994. They have recently signed a land contract with the Tianjin Development Zone Corporation for the construction of an insulin factory. This factory was entirely funded by Novo Nordisk.
So far, Novo Nordisk has grown into the largest producer of insulin in Asia as well as the largest European investor in the Tianjin Development Zone. Novo Nordisk President Lars Sorensen said that the Danish company is looking to establish a diabetes treatment base in China in the next 20 years.
Over 13,000 overseas-funded companies in Tianjin, the largest port city of north China, have launched business and production in the fields of electronics and information, automobile, food, machinery and of course the pharmaceutical industry. According to statistics, over 200 world-known enterprises including Motorola, LG, Novo Nordisk, Coca Cola and Pepsi, have invested a total of US $ 4.6 billion in the city.
Last year, the industrial output value for foreign-funded enterprises in the city amounted to RMB 95.4 billion (US $11.4 billion), which accounts for over 40 percent of the city's total.
(Source: Xinhua News Agency)
China Talks with Merck and Glaxo to Cut Prices of AIDS Drug
China's Ministry of Health has held talks with many pharmaceuticals companies, including Merck and GlaxoSmithKline about cutting costs of their AIDS treatment drugs. However, the Ministry of Health has not ruled out breaking the patent laws, according to Shen Jie, director of the national center for AIDS prevention and control.
Speaking after a news conference at the opening of China's first AIDS conference, Shen commented the companies are willing to consider decreasing the prices; however, they also felt the government should make efforts to decrease the taxes on these treatments.
A cocktail of drugs for treating AIDS currently costs RMB 70-80,000 per year, which is equivalent to about US $10,000. Shen said, "If we can get down to 350 dollars," similar to prices charged by Indian manufacturers, then China would not have to consider breaking the patent.
She also added that the Chinese government is attempting to coordinate ministries to do something about the tax rates on the drugs. Currently there are no Chinese companies that are developing western-style AIDS drugs, due to the fact that most patents are held by foreign companies.
When questioned whether China might break the patent laws as some countries have said they will do, Shen replied: "That may be the next step but we are not considering it now. This decision has been made by other countries and it can be a reference for us." She also added that China does not wish to break the drug patents, and their first choice will be to decrease the price. "If we can get price down to a price acceptable to us we won't have to take the next step."
Shen could not comment on when China might reach agreement with pharmaceutical companies. "That's up to them not us," she said. The three-day conference in Beijing plays host to academics and experts from across China to discuss ways to combat AIDS and HIV infection.
It is estimated by the government that more than 600,000 people in China were infected with HIV by the end of 2000. However, some independent doctors say in Henan province alone, there are 1 million people who have been infected with HIV.
(Source: AFX)
GlaxoSmithKline Produces and Sells Hepatitis B Drug in China
Heptodin, a hepatitis B drug, made in China by global pharmaceutical giant GlaxoSmithKline, will go on sale in pharmacies in the Chinese mainland this month. Hepatitis B has been listed by the World Health Organization (WHO) as one of the world's nine major fatal diseases. It is mainly transmitted via blood transmission and body fluid. Heptodin, a drug to combat this disease, is one of the major drugs produced by GlaxoSmithKline and has recently been approved for sale in China.
Chinese patients suffering from hepatitis B had previously relied on the imported Heptodin to cure their disease, but the expense of purchasing the medicine was high: RMB 266 (US$32.10) for 100 tablets. Now with the production and selling of the drugs in China, the retail price for 100-tablet boxes of Heptodin can be reduced to RMB 242 (about US$29.20).
GlaxoSmithKline has spent RMB 1.2 billion (US $145 million) to build a Heptodin production base in Suzhou Industrial Park, in east China's Jiangsu Province.
Guangdong ranks first in China with hepatitis B incidence rates, at 17.85 percent of its population suffering from this disease.
(Source: Asia Pulse)
Unigene Joint Venture Plans to Sell Calcitonin for Osteoporosis in China
Unigene Laboratories, Inc. announced its plans to begin selling its injectable calcitonin in the first quarter of next year with its joint venture in China, Shijiazhuang Pharmaceutical Group (SPG). The finished product will be produced in China using the large quantities of calcitonin manufactured in Unigene's New Jersey facility. Its partner SPG will provide the sales force behind the product.
According to statistics, China is the world's largest osteoporosis market with an estimated 90 million sufferers and more than 15 million fractures per year. The Shanghai Medical Journal and Chinese medical experts claim that 90 percent of those over 60 and virtually all of those over 70 suffer from the disease. Unigene's injectable calcitonin product was recently approved in Switzerland, which will allow the joint venture to promote and market the product for the treatment of osteoporosis in China. They are hoping that this may expedite the NDA approval process.
Dr. Warren P. Levy, President of Unigene, commented, "We are extremely pleased to be in position to commence sales of our calcitonin product in China in the first quarter of 2002. We believe there is a vast, underserved market opportunity in China for osteoporosis treatments and we look forward to capitalizing on this opportunity with SPG. Additionally, when the Chinese NDA is granted, the joint venture should enjoy several years of market exclusivity in relation to new injectable and nasal calcitonin products. This market exclusivity should enable the joint venture to significantly expand the market for this product."
(Source: PR Newswire)
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List of China GMP Facilities (Continued)
Name of Enterprise | Certified Scope |
401. Jiangxi Gannan Pharmaceutical factory | Freeze-dried powder-injection |
402. Shanghai Huaxin Bio-Tech Co., Ltd. | Recombinant human IL-2 |
403. Tianjin Pharma Jiaozuo Co., Ltd. | Powder-injection (penicillin) |
404. Northeast Pharmaceutical Factory | Powder-injection (Cephalosporin) |
405. Shandong Lukang Pharma Group Luyuan Co., Ltd. | Bulk drugs (Cephalosporin) |
406. Zhejiang Yongning Pharmaceutical Factory | Bulk drugs, Powder-injection (Cephalosporin) |
407. Hangzhou Aoya Bio-Tech Co., Ltd. | Freeze-dried powder-injection |
408. Zhejiang Dier Pharmaceutical Co., Ltd. | Powder-injection (penicillin) |
409. Zhejiang Yixin Pharma Co., Ltd. | High dose injection |
410. Zhejiang Jinhua Kangenbei Bio-Pharma Co., Ltd. | Freeze-dried powder-injection (penicillin) |
411. Hubei Keyi Pharma Co., Ltd. | Freeze-dried powder-injection |
412. Tianjin Amino Acid Company | High dose injection |
413. Qingdao Guofeng Group Jinhai Pharmaceutical Co., Ltd. | Powder-injection (penicillin), High dose injection |
414. Shandong Zichuan Pharmaceutical Factory | High dose injection |
415. Jinan Sanjiu Yimin Pharma Co., Ltd. | High dose injection |
416. Binzhou Pharmaceutical Factory | High dose injection |
417. Shandong Taiyi Pharmaceutical Co., Ltd. | High dose injection |
418. Qingzhou Yaowang Pharmaceutical Co., Ltd. | Powder-injection (penicillin), High dose injection |
419. Henan Shuaike Pharma Co., Ltd. | Powder-injection (Cephalosporin) |
420. Sichuan Shenghe Pharma Co., Ltd. | High dose injection, Low dose injection |
421. Suzhou 6th Pharmaceutical Factory | Bulk Drugs, Freeze-dried powder-injection |
422. Suzhou 4th Pharmaceutical Factory | Capsule |
423. Kunshan Longdong Pharma Co., Ltd. | Tablet, Capsule |
424. Lianyugang Zhengda Tianqing Pharma Co., Ltd. | Powder-injection, High dose injection,Low dose injection |
425. Jinan Haimufamu Pharmaceutical Co., Ltd. | High dose injection |
426. Shandong Dezhou Pharmaceutical Factory | Freeze-dried powder-injection, High dose injection |
427. Penglai Huatai Pharma Co., Ltd. | Freeze-dried powder-injection |
428. Tianjin Amino Acid Company | High dose injection |
429. Changchun Changsheng Co., Ltd. by Shares | Human rabies vaccine, Hepatitis A vaccine |
430. Shanghai Haoyuan Bio-Tech Co., Ltd. | PRC agent |
431. Lianning Weixing Bio-Product Research Institute | Recombinant human IL-2 |
432. Xianju Pharmaceutical Co., Ltd. | Freeze-dried powder-injection |
433. Chongqing Kerui Pharma Co., Ltd. | Powder-injection (Cephalosporin) |
434. Deyang Huakang Pharma Co., Ltd. | High dose injection |
435. Yanlijie (Hangzhou) Pharma Co., Ltd. | Eye-drops |
436. Hainan Weikang Pharma Co., Ltd. | Powder-injection (Penicillin) |
437. Sichuan Yangtian Pharma Co., Ltd. | High dose injection |
438. Beijing Zhongguan Pharma Co., Ltd. | Capsule, Granule |
439. Hainan Jinxiao Pharma Co., Ltd. | Tablet, Granule |
440. Helongjiang Dilong Pharma Co., Ltd. | Freeze-dried powder-injection, Low dose injection |
441. Shanghai Shiye Yida Bio-Tech Co., Ltd. | Recombinant streptokinas |
442. Shanghai Bio Products Research Institute | Recombinant human IFa1b, Recombinant human IF g |
443. Lizhu Pharmaceutical Factory | Tablet, capsule, granule |
444. Hunan Langlifu Pharma Co., Ltd. | Freeze-dried powder-injection |
445. Tianjin Biochemical Pharma Factory | Freeze-dried powder-injection |
446. Hunan Guhan Group Hengyang Factory | High dose injection |
447. Yueyang 4th Pharmaceutical Factory | High dose injection |
448. Chengdu Tongde Pharma Co., Ltd. | Freeze-dried powder-injection |
449. Shanghai Meikang bio engineering Co., Ltd. | Exosomatic diagnosing agent |
450. Qingdao Shuanglong Union Pharma Co. Ltd. | Bulk drug |
Lehman Lee & Xu
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