MSD plans $1.5b drug R&D in China

Merck Sharp & Dohme Corp (MSD) is planning to invest $1.5 billion in research and development in China over the next five years, Michael Rosenblatt, the company's executive vice president and chief medical officer, told the Global Times on Monday.

The US-based pharmaceutical company, which is known as Merck & Co in the US and Canada, started building its R&D Asia Headquarters in Beijing in December 2011. Rosenblatt said Monday that the center should be put to use in 2015.

"We are making a very big commitment to R&D in China… We want to tap into the talent pool here, to not only help develop medicines in China for China, but also to develop medicines in China for the rest of the world," said Rosenblatt.

Wu Jie, communications director for the company in China, told the Global Times that it has filed 20 new drug applications so far with the State Food and Drug Administration, including medicines to treat chronic diseases such as cardiovascular disease and diabetes.

Data from CIC Industry Research Center showed that around 19 percent of China's total population is now suffering from chronic diseases, which could translate into a healthcare expense of $500 billion each year.

Xu Lingni, a pharmaceutical industry analyst at the research center, said that MSD has enjoyed a leading position in the treatment of chronic diseases in China, but also faces growing competition in the field from other international pharmaceutical companies such as Pfizer.

Pfizer formed a joint venture with domestic drug producer Zhejiang Hisun Pharmaceutical Co in 2011, eyeing the country's growing market in chronic disease treatment.

MSD began in September a joint venture, mainly specializing in producing chronic disease medicines, with Jiangsu-based pharmaceutical company Simcere. This move could help the company to further nudge into the primary healthcare market in China, according to Xu.

Simcere has a sales network that covers nearly 5,000 hospitals throughout the country.

"MSD aims to expand its presence in chronic disease treatment in China by cooperating with Simcere," said Xu.