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China's Attraction and Strategies to Work with It

Analysis of Best Strategies for Western Pharmaceutical and Biotech Companies to Partner with Chinese Pharmaceutical Comp

Publication Date   July 2008
Publisher   JZMed
Product Type   Report
Pages   162
ISBN Number   not applicable
Product Code   JZM004
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Price £1,075.00

approximately: $1,603 | €1,281

Summary


Despite the fact that China has become attractive to the Western pharmaceutical and biotechnology companies because of its sizeable yet still rising pharmaceutical market and abundant yet still low-cost manpower resources, it is still challenging to many Western pharma/biotech companies as for how to timely grab the opportunities presented by this market and how to effectively utilize the resources currently available in that country.

On the other hand, since things are changing rapidly in China at present time, including its pharmaceutical market and the cost of its abundant manpower resources, Western pharma/biotech companies would have found themselves in the end that they have missed what is available presently in China if they decided to wait until all issues they are concerned with are completely cleared out before starting thinking of entering the Chinese market. In fact, it is all related to what strategies the Western companies should take when facing such challenges. There are, in fact, many proven ways, both practical and effective, for these companies to adopt to enter the Chinese market.
This report is thus designed and prepared to help these companies identify the best strategies suitable for them to pursue the China opportunity.

Main features of the report:

  • The report is written by industry experts who knows both the Western pharmaceutical/biotech industry and the Chinese pharmaceutical industry, and is based on a long time study of the Chinese pharmaceutical industry.
  • The report includes rich, first-hand information about the Chinese pharmaceutical market, Chinese pharmaceutical industry as well as the Chinese culture in particular their business philosophy and behaviors in business conduct.
  • The report also first time released a complete and comprehensive package of strategies suitable to any size of Western pharma/biotech companies to pursue their China opportunity. It analyzed in depth both the advantages and disadvantages of each of these strategies, and provides the useful strategies of how to overcome challenges when entering the Chinese market.
  • More importantly, the report illustrated these strategies with case studies of abundant real examples.
  • In addition, the report includes detailed information of 48 best Chinese companies in the areas of traditional pharmaceutical, biotechnology, contract pharmaceutical research, and contract pharmaceutical manufacturing, including their capabilities in R&D and/or manufacturing.
  • The report also describes in detail the activities of 66 Western companies currently pursuing opportunities in China. These companies include major pharma/biopharma companies, small-sized biotech companies, multinational CROs, generic drug makers, as well as venture capital investors.

Following questions answered by the report:

  • What does China possess? How could this country be an alternative place of resources to the Western pharma and biotech companies?
  • What do the readily available resources in China mean to the Western companies?
  • Why is China as an emerging pharmaceutical market important to the Western companies? How will this market possibly develop in near future?
  • What can Chinese pharmaceutical companies do to help Western companies?
  • Who can go to China and what strategies should they employ?
  • What are the best strategies to tap the resources readily available in China?
  • What are the secrets of Chinese culture in business conduct? How to effectively deal with them?
  • How to effectively collaborate with a Chinese company and establish a good relationship with them?

Methodologies the report employed:

  • The report first conducted a complete and thorough analysis about all challenges the Western pharmaceutical and biotech companies presently experience and the actions they are taking trying to exit quickly from the current downturn situation. It then analyzed the advantages and disadvantages of these actions. Based on the analysis, the report then pointed out what are urgently needed for these pharma/biotech companies not only to make a quick turnaround but also to be prospective in their long term development.
  • The report then analyzed what China, based on its rising pharmaceutical market and readily available abundant manpower resources in its pharmaceutical industry, could offer to help the Western companies overcome the difficulties, including all possible options the Western companies can take.
  • Based on the analysis of what are urgently needed and what are readily available on both sides, the report then conducted a matching process. Based on the results discovered in the matching process, it identified the best strategies for the Western companies to tap the available resources in China.
  • The report further analyzed and identified all possible challenges the Western companies may face when entering the Chinese market with the emphasis on the cultural difference in Chinese business conduct. It then made suggestions to all Western companies, both large and startup, of the best strategies to circumvent the hurdles in order to effectively work with China, both people and companies in that country.

Who should buy the report:

  • The report is a valuable guide and a must-read book to executives of the pharmaceutical and biotechnology companies, both large and startup, who would like to incorporate the best strategies into their corporate development plans in order to effectively tap the readily available resources in China.
  • The report is also a useful reference book to those executives in the financial investment industry and even government agencies who wish to have a better understanding about China and the Chinese culture as well.

Content


  • Executive Summary
  • Chapter 1. Introduction: Difficulties experienced currently by Western pharmaceutical industry and attractions China presents
    • 1.1 Western pharmaceutical industry is currently experiencing downturn
    • 1.2 Factors negatively affecting the Western pharmaceutical industry
    • 1.3 Passive actions currently taken by Western pharmaceutical industry
    • 1.4 Attractions China presents
      • 1.4.1 China is presenting an attractive pharmaceutical market to the Western pharma/biotech companies
      • 1.4.2 China can offer to the Western companies a vast pool of talented, skilled workforce
        • 1. The vast pool of the skilled workforce in China is an alternative resource to the Western companies to increase productivity
        • 2. The alternative labor resource is also low cost
    • 1.5 Do not miss the Bus Potential consequences if not promptly targeting the Chinese pharmaceutical market or timely taking the best use of what is readily available in China
    • 1.6 Summary
      • 1. The entire world pharmaceutical industry is experiencing difficult time
      • 2. Targeting the growing Chinese pharmaceutical market or partnering with Chinese companies has become a must
      • 3. Current development trend in partnering with Chinese companies
      • 4. Challenges encountered by the Western companies when entering the Chinese market
  • Chapter 2. What do the Western pharmaceutical and biotech industry urgently need at this moment?
    • 2.1 Cost reduction is one of the main goals Case studies to illustrate the strategies currently pursued by major pharma/biotech companies and analysis of their essential motivations
      • 2.1.1 Case illustration
      • 2.1.2 Analysis of motivations
    • 2.2 Cost reduction is not the only goal An in-depth analysis of the advantages and disadvantages of the actions currently undertaken by Western pharma/biotech companies
      • 2.2.1 All possible options available to the Western pharma/biotech companies
      • 2.2.2 Analysis of the advantages and disadvantages of each option
    • 1. Partnering with small-sized biotech companies or licensing drug candidates from them
      • Advantages
      • Disadvantages
  • Why is that? In-depth analysis of the disadvantages
    • i. Rationale
    • ii. Rationale
    • iii. Rationale
    • 2. Restructuring own organization in order to improve efficiency
      • Advantages
      • Disadvantages
    • 3. Increasing outsourcing to more extensively utilize the external resources
      • Advantages
      • Disadvantages
    • 4. Focusing on the emerging pharmaceutical markets
      • Advantages
      • Disadvantages
    • 2.3 Summary
  • Chapter 3. What can China offer to help at this moment? A review of the entire Chinese pharmaceutical industry
    • 3.1 Introduction
    • 3.2 Structure of Chinese pharmaceutical industry has changed dramatically over the past two decades
    • 3.3 What can Chinese pharmaceutical companies offer to help the Western companies?
    • A review of the current research and service capabilities of the entire Chinese pharmaceutical industry
      • 3.3.1 Chinese pharmaceutical companies: major players and their current capabilities
      • 3.3.2 The fast growing Chinese biotech industry
      • 3.3.3 China's contract pharmaceutical research industry (CROs)
      • 3.3.4 China's contract pharmaceutical manufacturing industry (CMOs)
  • Chapter 4. How to best use the resources readily available in China
    • Analysis of Strategies
    • 4.1 Introduction
    • 4.2 Identifying the areas in drug R&D and manufacturing that require to be addressed urgently
      • 4.2.1 Most costly sectors in entire process of drug R&D and manufacturing
      • 1. Brief description of drug discovery, development and manufacturing process
      • 2. Analysis of cost structure of the entire process
      • 3. Identification of the most costly sectors
      • 4.2.2 Most frequently failed sectors in drug R&D
      • 4.2.3 Analysis of the factors contributing to the failures of a drug trial
    • 4.3 Chinese companies' capabilities in these most costly and frequently failed areas
      • 4.3.1 Custom synthesis of large scale compound libraries that possess structural feature of drug molecules (or so-called drug-like molecules)
      • 4.3.2 Pharmacological property studies
      • 4.3.3 In vivo preclinical research
      • 4.3.4 Clinical research
      • 4.3.5 Contract manufacturing
    • 4.4 Matching the China's current capabilities with the urgent needs of the Western pharma/biotech companies
    • 4.5 Strategies to work with China and Chinese companies
      • 4.5.1 Marketing pharmaceutical products in China
      • 4.5.2 Tapping the abundant and low-cost labor resources in China
      • 4.5.3 How to tap the low-cost labor
      • i. Establishing a wholly owned facility
      • ii. Forming a joint venture (JV)
      • iii. Forming a partnership
      • iv. Outsourcing (or contracting out)
      • v. Sourcing the low-cost materials in China
    • 4.6 Advantages and disadvantages of each strategy for entering the Chinese market
      • 4.6.1 Marketing pharmaceutical products in China
      • i. Who can go to China
      • ii. Challenges
      • iii. How to overcome these hurdles
      • 4.6.2 Tapping the low-cost labor in China
      • 1. Establishing a wholly owned facility
      • i. Advantages
      • ii. Disadvantages
      • 2. Forming a joint venture (JV)
      • i. Advantages
      • ii. Disadvantages
      • iii. Strategies to safeguard IP and products
      • 3. Partnership
      • i. Advantages
      • ii. Disadvantages
      • 4. Outsourcing
      • i. Advantages
      • ii. Keys to gain these advantages
      • iii. Disadvantages
    • 4.7 Evaluating the best strategies to tap the Chinese market
      • 4.7.1 Case studies
      • 4.7.2 Best strategies to outsource to China at present time: to all sized companies
      • 4.7.3 Best strategies to tap the resources in China: specifically to small and medium-sized pharma/biotech companies
    • 4.8 Who are in China at present time and what are they doing there?
      • 4.8.1 Case studies
      • 1. Novartis setting up wholly owned R&D center in Shanghai to focus on diseases popular in China
      • 2. AstraZeneca implementing a full scope of collaborations with China
      • 3. Pfizer conducting a broad scope of drug manufacturing and selling in China
      • 4.8.2 Summaries of major Western companies and their activities in China (including 22 major pharma/biotech companies, 10 small biotech companies, 10 ultinational CROs, 10 generic drug makers, and 10 investment companies)
    • 4.9 Building own facility in China or contracting out to there?
    • 4.10 Must the outsourcing strategy be incorporated into long term business development goal? - An analysis of the difference between partnership and pure outsourcing
      • 4.10.1 Partnership
      • i. Activities involved in a partnership
      • ii. Purposes of a partnership
      • iii. Characteristics of a partnership
      • 4.10.2 Outsourcing
      • i. Activities involved in outsourcing
      • ii. Purposes of outsourcing
      • iii. Characteristics of outsourcing
      • 4.10.3 Summary
  • Chapter 5. How to effectively collaborate with Chinese companies?
    • 5.1 Introduction
    • 5.2 Differences in business conduct between the West and the East
      • 5.2.1 Long-term business development goals versus short term business development goals
      • 5.2.2 Assumed responsibility versus required responsibility
      • 5.2.3 Consistency versus randomness
      • 5.2.4 Business relationship versus personal relationship
      • 5.2.5 Summary of the characteristics of Chinese culture in business conduct
    • 5.3 Strategies for effectively collaborating with Chinese companies
      • 5.3.1 Select a Chinese partner/vendor carefully
      • 5.3.2 Pay attention to relationship
    • 5.4 Strategies to avoid conflicts and loss of IPs
    • 5.5 Strategies to resolve issues/disputes in conducting business collaboration with a Chinese company
      • 5.5.1 Quality issue
      • 5.5.2 IP breach
  • Appendixes
    • Appendix I. Author's Biography
    • Appendix II. About JZMed, Inc.
  • List of tables
    • Table 1. Growth rates of world major pharmaceutical markets (year 2007)
    • Table 2. Growth rates of major pharma/biotech companies' revenue/profit
    • Table 3. Comparison of labor costs (FTE rates) in various places of the world
    • Table 4. Survey results of pharma/biotech companies interested in outsourcing to China (or India)
    • Table 5. Representative major Chinese pharmaceutical companies and their capabilities
    • Table 6. Representative major Chinese biotech companies and their capabilities
    • Table 7. Representative major China-based CROs and their service capabilities
    • Table 8. Representative major China-based CMOs and their service capabilities
    • Table 9. Cost analysis of drug discovery, development and manufacturing process
    • Table 10. Matching between the needs by the Western pharma/biotech companies and the capabilities and readily available resources in China
    • Table 11. Major Western pharma/biotech companies in China
    • Table 12. Small-sized Western pharma/biotech companies in China
    • Table 13. Multinational CROs in China
    • Table 14. Western generic drug manufacturers in China
    • Table 15. Foreign investors in China
    • Table 16. Comparison between partnership and pure outsourcing
    • Table 17. Major characteristics of Chinese culture in business conduct
  • List of figures
    • Figure 1. Distributions of the number of China-based CROs/CMOs in each technical area of the entire drug discovery, development and manufacturing process
    • Figure 2. Description of entire drug discovery, development and manufacturing process