Full article reprinted from "PharmAsia News" November 25, 2008
Find out why GlaxoSmithKline announced Nov. 21 a joint venture with Shenzhen Neptunus Interlong Bio-Technique to develop flu vaccines aimed at strains specific to China, Hong Kong and Macau...
Full article reprinted from "PharmAsia News" November 25, 2008
GSK Forms Joint Venture With Shenzhen Neptunus Interlong Bio-Technique For Flu Vaccine
GlaxoSmithKline announced Nov. 21 a joint venture with Shenzhen Neptunus Interlong Bio-Technique to develop flu vaccines aimed at strains specific to China, Hong Kong and Macau.
GSK signed the agreement through its GSK Biologicals division to develop vaccines for seasonal influenza and pre-pandemic and pandemic influenza.
The UK company will contribute $31 million for a 40 percent stake in the JV while NIBT will put up the equivalent of $47 million in assets. The agreement gives GSK the option of increasing its equity interest to a majority position within five years.
The JV remains conditional on a number of factors but a GSK spokesman told PharmAsia News that the target is for operations to begin in the first quarter of 2009. The new company has no products in the pipeline yet but GSK's strength in influenza products - it was the first company to receive approval from the European Medicines Agency for a pre-pandemic influenza vaccine - and NIBTs knowledge of the local market and specific strains of the virus would give the new company "a leg up," the spokesman said.
"The joint venture will combine the potential of GSK's adjuvant technology and expertise in vaccine development together with NIBT's extensive experience of the Chinese vaccines market and make use of their access to specific local influenza antigens," said GSK Biological's President Jean Stéphenne.
"This collaboration marks another step in our strategy to build our vaccines presence in critical emerging markets, such as China."
NIBT is a leading drug researcher, developer and distributor in China. It specializes in gene engineering drugs and preventive biological products. Its products are available in 20 Chinese provinces and 500 medical organizations. The company is now looking for a more international presence.
NIBT brings to the table antigens specific to the region that could give the JV an advantage in developing new products quickly.
The agreement illustrates a general trend among MNCs to pool resources in emerging markets. In general, companies are moving toward working together, Beatrijs Vanliedekerke, a pharma industry analyst at PriceWaterhouse Coopers in China, told PharmAsia News.
"Working together in [virtual] networks and companies collaborating rather than doing everything themselves is the new business model pharma is evolving towards."
At the same time, it is cheaper to develop products before disease breaks out, she said, so moving to develop specific vaccines may be the best and cheapest solution given the global shortness of funds for health care.
The deal marks another step by GSK into emerging markets. The company already has 14 alliances and JVs around the world.
GSK earlier this month announced it would cut 1,000 sales positions in the U.S. to enhance its expansion plans in China and India. The company said it would lay off the sales reps by the end of the year.
"Earlier this year we announced three key strategies and one of them was to meet the medical needs of emerging markets," said the GSK spokesperson.
GSK India Managing Director Hasit Joshipura told PharmAsia News in an interview last month about GSK's evolving strategy in emerging markets such as China and India.
GSK is also advancing its flu vaccines in Japan and was the first foreign manufacturer to participate in Japan's national project for stockpiling vaccines to fight a possible flu pandemic.
- Alfred Romann
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