China is about to get a biotech center. With an investment of $350 million from Pfizer Inc., this facility – that will be located in eastern Hangzhou and will be ready by 2018 – is in line with other similar ones engineered by large pharmaceutical corporations to develop a presence in the second largest drugs market in the world.
According to IMS Health, the healthcare market in China is estimated to be valued at $185 billion by 2018. For FDIs to get the edge in the market, getting a head start on government and domestic regulations is very advisable. And with this new facility it will help China’s goal of adding to the value of its manufacturing sector.
There has been a significant plummet since 2012 in drug market growth from 20+ percent. This is due to the lack of demand for branded generics as well as Beijing’s attempt to push prices down to stop costs getting out of control. Despite this, the projected spending for overall healthcare in the region by 2020 is $1.3 trillion.
In Singapore, ASLAN Pharmaceuticals is in the process of developing the pan-HER inhibitor varlitinib. The US Food and Drug Administration Office of Orphan Products Development for gastric cancer just gave it orphan drug designation. Given that gastric cancer is the third leading cause of cancer deaths around the world and the third most common cancer in Asia, this is an important step in disease control in the region.