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The Week in Review: China Life Science, Developing

publication date: Apr 25, 2009
 | 
author/source: Richard Daverman, PhD
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Life science in China continued its evolutionary progress last week, an advance marked by individual corporate developments. Sanofi-Aventis (NYSE: SNY) announced the largest financial commitment of the week: a 600 million RMB ($90 million) investment that will expand its Beijing manufacturing facility (see story). The new facility will produce the company’s insulin drug, Lantus®. Lantus is a pre-filled injection, delivered via the SoloSTAR® pen device, which provides once-daily insulin to people with type 1 and type 2 diabetes. The goal is a commitment to China in more ways than one: the China manufactured product will serve China’s increasingly recognized population of diabetes patients. Sanofi-Aventis is not simply seeking a lower production cost worldwide use. The new facility is located alongside Sanofi-Aventis’ existing manufacturing plant in the Beijing Economic and Technological Development Area.

Shanghai ChemPartner Co., Ltd., a member of the ShangPharma group, entered a strategic alliance with Sanwa Kagaku Kenkyusho Co., Ltd. (SKK), a pharmaceutical company headquartered in Nagoya, Japan (see story). The partnership will aid SKK’s Asian market initiative and the company’s desire to expand its presence in diabetic research. Specific details of the partnership were not disclosed.

Excel PharmaStudies, a CRO headquartered in Beijing, launched a new biometrics center in China Medical City, located in Taizhou City, Jiangsu Province (see story). This center will offer clinical data statistics services for new drugs and will also provide an off-shore site for outsourced biometrics services. As a first step, Excel will move the company’s existing biometrics data services from its Beijing and Shanghai operations, then integrate and expand its biometric offerings.

Excel PharmaStudies also announced that it won three Asia Pacific Excellence in Healthcare Awards from Frost & Sullivan (see story). The company was presented with all three CRO sector awards, including “Asia Pacific Clinical Research Organization of the Year.” The awards were part of 20 such honors given by Frost & Sullivan to life science companies that operate in the Asia Pacific area. 

China Sky One Medical (NSDQ: CSKI) (中国天字一号医药公司) received SFDA approvals for two new topical products: Geranium ointment for skin problems such as eczema and Musk liniment for pain relief (see story). China Sky One said that the products have only one or two competitors on the market. It expects them to generate $800,000 in revenue during 2009 and substantially more in 2010. 

Genesis Pharmaceuticals Enterprises (OTCBB: GNPH) (江波制药) has begun marketing three TCM drugs from a portfolio of 22 recently acquired TCMs (see story). Genesis bought the new products, all with SFDA approval, from Hongrui Pharma. The three drugs will be marketed under Genesis’ brand name, Jiangbo, and distributed through Genesis’ established network. Genesis expects the three products to produce $7.3 million of revenue in fiscal 2010. Also during the last week, Genesis announced it will take the name Jiangbo Pharmaceuticals, Inc. as its corporate name. A new ticker symbol will be announced in the future.

Tianyin Pharmaceutical (NYSE Amex: TPI) reported that it is very pleased with the results of the 2009 tender process recently completed for its flagship drug, Ginkgo Mihuan Oral Solution (see story). Ginkgo Mihuan Oral Solution is a TCM used to treat sequelas of cerebral thrombosis, coronary heart diseases and myocardial infarction. It generated 26% of Tianyin’s revenues in the December quarter. 

And finally, Lotus Pharmaceuticals (OTCBB: LTUS) (路坦制药有限公司) issued a press release detailing its 2008 financial results, even though the company had filed its 2008 report a week previous (see story). The news release contains some interesting additional information. Notably, Lotus said its new manufacturing facility in Inner Mongolia, expected to go online in 2013, will save the company at least $15.5 million in operational costs per year, a combination of lower taxes, utilities, and labor costs, compared to the expense of its present Beijing operations.

Disclosure: none.

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