Pharmalicensing in China through Jiwa Bio-Pharm Group

Pharmalicensing in China through Jiwa Bio-Pharm Group

China is the world’s fastest growing emerging economy with the largest population and highest annual growth rate for pharmaceutical products. According to the forecasts of IMS, China will become the seventh largest pharmaceutical market in the world in 2009 and will jump to the second largest one with a market capacity of US$220 billion after the U.S.A. in 2020. More than a dozen of multi-national pharmaceutical companies have now set up their own business operations in China, mostly in local manufacturing, some in clinical development and technology licensing, while others in sales and marketing of their own products imported particularly for the China market.

Unlike markets in the Western countries, the China pharmaceutical market is often considered a difficult water to chart, partly because of the unique hospital tender bidding system, and partly because of its highly fragmented markets for sales and distribution. While most established Chinese pharmas have their own sale and marketing teams for their products, almost every province has hundreds of commercial companies which are independent pharmaceutical sale agents having unique access to their regional hospital clients. And the marketing success of an imported product depends not only on the merits of the product itself, but also on the pricing categories, competition of similar products as well as on its listing onto the national or regional medical insurance (MI) schemes for reimbursable drugs, not to mention the complicated incentive systems required for effectuating effective sale results. From the experience of many foreign pharmas in China, setting up a sale and marketing operation in China, either independently or joint ventured with Chinese local partner is a costly proposition. First, it takes at least two years in obtaining an Imported Drug License (IDL) from the State FDA of China, followed by another two to three years to get the product listed in the MI scheme to attain a decent sale volume. In the interim, even just to maintain a least of management staff and sale force, the whole operation would continue be a cost-center until at least five years after. The situation could possibly be much worse if a foreign company has just a couple of products registered for sales in China market.

An alternative strategy is to partner with an established Chinese Pharma which has already been developed an effective sales network by its own dedicated sale force coupled with a contracted distribution through regional sales agents. This would be a much more profitable proposition if you find the right partner. In this area, Jiwa Bio-Pharm could be your strategic collaborator in product/technology licensing.

Jiwa Bio-Pharm is a Hong Kong based pharmaceutical corporation listed in the Hong Kong stock Exchange. It was established in 1987 and has more than two decades of experience in partnership with foreign pharma. The Group has been selling imported pharmaceutical products from Europe since its inception in the eighties and has its own sales force plus a network of sale agents across the nation of China. It also possesses one of the most experienced team of regulatory experts in the industry for registration and clinical development.

Jiwa Bio-Pharm Group has currently forged strategic partnership with:

	jiwa.com.hk
	jida.com.cn
	jiwajs.com.cn