Merck Inks a Deal with Sinopharm to Bolster Its Vaccine (and Biosimilar ?) Business in China
Merck & Co today announced that is reached an agreement with Sinopharm Group Co Ltd one of China’s largest biopharmaceutical companies to market its cervical cancer vaccine Gardasil and other protein-based products in China. While the terms of the deal were not disclosed, it is Merck’s first attempt to expand its vaccine and biotechnology business in the rapidly emerging Chinese biopharmaceutical market. Merck, like many other American pharmaceutical companies, now recognize that a Chinese marketing and distribution partner is required to successfully penetrate and compete in China.
Like other big pharma companies, Merck recognizes that its future growth lies in making inroads into emerging markets like Asia, Africa and South America. Merck executives project that more than 25 percent of the companies pharmaceutical and vaccine sales will come from emerging markets by 2013 (currently 17 percent of revenues are derived from emerging markets). Last May, Merck indicated that it already had 3,000 sales representatives in China which represents a 90 percent increase since 2007.
Cancer is a major problem in China and it is putting a lot of financial pressure on the Chinese government. Moreover, the cervical cancer rate is inordinately high in China mainly because there is no formal screening program similar to those found in the US and Europe.
Interestingly, the Human Papilloma Virus (HPV) types that cause cervical and other cancers in China are somewhat different than those that cause disease in Western countries. For example in addition to HPV 16 and HPV 18, HPV 58, 52 and 33 have also been associated with a high incidence of cervical cancer in China. This suggests that Merck will have to reformulate Gardasil (which contains HPV 6, 11, 16 and 18) to be effective for the Chinese market.
Until next time...
Good Luck and Good Job Hunting!!!!!! (try China)
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