Window to China
The MOH further announced plans to release a list of over 100 disease categories that will be covered by the clinical pathway management system and to promote the system in all level three hospitals nationwide. The clinical pathway system may be an important determinant of formulary choices and practice and prescribing patterns going forward.
Novo Nordisk revealed last week that its recently-announced Beijing (diabetes) R&D center expansion has a budget of USD 100 million – with up to USD 40 million earmarked for new labs that should be operational by the end of 2011. Novo also released results of a 3-month survey undertaken with the Chinese Medical Association involving over 5,900 subjects with Type II diabetes, which revealed a high number of patients with poorly controlled blood glucose levels and a high prevalence of diabetic complications.
In China, many life science companies are located in science parks which are found in many major cities, such as Shanghai, Beijing, Tianjin, Nanjing, and Suzhou. The largest science park in China where most Western pharmaceutical companies are located is in Z-BASE, in the Pudong region of Shanghai. Representatives from BASE will talk about how their science park can help Western and Chinese companies grow and prosper.
The new list contains 174 products which will have their maximum retail price reduced, as well as 16 products which will no longer receive separate pricing status and have been demoted to general pricing. The average price reduction is reported to be 19%. Of the items on the price reduction list, 111 are from overseas manufacturers; of those on the separate pricing cancelation list, 13 are from overseas manufacturers including Lilly, Pfizer (2), Johnson & Johnson, Merck KGaA (3), Apotex, GSK, Takeda, Astellas, AstraZeneca, and Novartis. In other pricing news, the Anhui Provincial Pricing Bureau announced that it will cap maximum drug retail markups at RMB 10 beginning December 10.
Consolidation continues at a brisk pace in the drug distribution sector, with Shanghai Pharma and Sinopharm, among others, buying regional distributors left and right. US distribution giant Cardinal Health has also jumped into the game, announcing the acquisition of privately-held Zuellig Pharma China last week for a whopping USD 470 million.
Nanjing-based MeiRui focuses on the urology therapeutic area – the company’s drugs include naftopidil and finasteride, both used in the setting of benign prostatic hyperplasia, as well as tolterodine, for incontinence. GSK markets dutasteride (Avodart) outside of China for BPH.