BEIJING - Swiss
pharmaceutical company Novartis AG began
constructing a US$83 million site for drug
production and development in Changshu of East
China's Jiangsu province on
February 24.
The new site, Suzhou Novartis
Pharma Technology Co Ltd, is Novartis' sixth
investment project in China, and is expected to
become fully operational by the end of 2007. It
will analyze, develop and produce chemicals for
drugs used to treat leukemia,
epilepsy, hypertension and
other diseases. Taking advantage of its location
near the Yangtze River, products will be exported
worldwide.
"The center further reinforces
the presence of Novartis in China," said Jeffrey
Li, Novartis China president, at the
groundbreaking ceremony. For the first time, the
global pharmaceutical company is conducting its
drug development business outside Switzerland and
the United States.
With an aging
population and an increasing need for healthcare,
China is expected to become the world's No 2 or No
3 pharmaceutical market in five to 10 years.
The new site is part of Novartis'
long-term strategy to increase its investment in
China. Early this year, it started an expansion
project to double the size of its plant in
Changping, Beijing. That site is
providing Coartem (lumefantrine), a drug that
treats malaria, for the World Health Organization.
Following other global pharmaceutical
companies like Roche and Pfizer AG, Novartis also
plans to establish another drug research and
development center, possibly in Shanghai. The center will
be part of the US-based Novartis Institute for
BioMedical Research. Novartis officials said they
are still in discussion with the government with
respect to the project and refused to reveal
details.
Last year, Novartis introduced
six patented drugs into China and, in 2006, two
more will be introduced. "This new plant of
Novartis in China is another example of the
strengthened partnership between Switzerland and
China in recent years," said Swiss Ambassador to
China Dante Martinelli at the ceremony. "China is
the focus of international attention for
investment opportunities. The success of Novartis
in China during the last 10 years has created a
good example for other businesses in Switzerland
seeking to explore opportunities in China."
The centre is also Novartis' first center
combining drug development and production, in an
effort to improve the innovation efficiency and
save cost, according to James Shannon, who leads
the global development of Novartis Pharma.
The strong chemistry industrial base and
growing market in China were the two major factors
leading Novartis to invest in China. Novartis has
conducted a thorough review of various options in
the country since 2004. Convenient transportation,
government support and the broad talent pool in
the Yangtze Delta area attracted Novartis to
Changshu. Thomas van Laar, head of Global
Technical Operations of Novartis AG, said the
Changshu site will employ more than 250 staff,
including 50 chemical specialists, most of them
Chinese.
