Published on : Apr 10, 2015
Novartis, the Swiss pharma giant declared last year to acquire the cancer drug venture for GlaxoSmithKline’s (GSK) and in place GSK to receive the vaccine business. In a similar move, Novartis announced sale of the division for animal health to Eli Lilly and Co at a price US$5.4 billion in 2014.
A reliable industry source reports, the original Novartis China head resigned from the vaccine business on account of which GSK’s new head from the vaccine business has taken the position.
The CEO for GSK in China commented, the company has plans to expand manufacturing in China in the next one year and have newer technologies in the country for vaccines. In the mean time Novartis is exiting from the vaccine business to cancer on cancer, ophthalmology, and generic drugs. In addition to this, Pfzer announced to suspend vaccine business in China as the drugs are limited in number, if the sale of even product stalled it affected the entire operations.
Early in the year, the province of Henan sharply cut drug prices for public bidding and as a consequence many foreign-funded pharma companies quit the market. This led to a setback for foreign-funded pharma companies in the region. Additionally, as the Chinese government gears up to crackdown corruption and other things, several foreign-funded pharma companies have begun slow down of development or anything related to streamlining acquisition in China.
GSK, last year paid fine of US$490 million to lure doctors and health givers to buy the company’s drugs for which the company based in UK was announced as the scapegoat for spreading corruption in the Chinese drugs market.