Merck Serono breaks ground in China with new plant
pharmafile | August 27, 2014 | News story | Manufacturing and Production, Sales and Marketing | China, Merck Serono, manufacturing, metformin
Merck Serono has broken ground for its new pharmaceutical manufacturing facility in Nantong, China.
The new facility, which will be the German firm’s second-largest pharma manufacturing facility worldwide, will focus on the bulk production and packaging of Merck’s main drug treatments for diabetes, cardiovascular diseases and thyroid disorders.
This includes its diabetes treatment Glucophage (metformin), beta blocker Concor (bisoprolol) and hormone treatment Euthyrox (levothyroxine) which despite being mature products are still enjoying buoyant growth in emerging markets.
These medicines are referenced in China’s essential drug list, making Merck Serono – the drugs unit of Merck KGaA – the only multinational company in China to dedicate a large scale green-field investment to the production of drugs on the list.
This list comprises medicines that address public healthcare needs, and must by Chinese law be available at all times.
“We have steadfastly aligned our focus and strategy with the Chinese government’s efforts to increase patient access to quality care throughout the country,” says Belén Garijo, president and chief executive of Merck Serono, who announced the plans for the build last year.
“Today, we are focussed on localising production to better cater to the demands of Chinese doctors and patients. At the same time, we are localising research and development to further build a differentiated portfolio of medicines in China, aimed at serving patient needs for general as well as specialised care. We are also creating alliances and partnerships with local partners in every part of our operations.”
China problems
Merck KGaA has seemingly not been put off by recent problems in China that has seen many of its big pharma peers investigated on allegations over corruption and bribery, with senior members of GSK currently awaiting trial in the country.
China is still a relatively small market in terms of revenue for pharma, but it will become a major growth driver in the coming decade, meaning many firms are willing to accept the risks and build new centres and manufacturing plants in the country.
Merck KGaA joins Johnson & Johnson in expanding in the country after the US giant announced last year that it would be building a new biopharmaceutical production facility in Xi’an, Shaanxi province, where it operates a joint venture called Xi’an-Janssen Pharmaceutical.
In June last year, Boehringer Ingelheim also signed an agreement with Zhangjiang Biotech and Pharmaceutical Base Development Company to construct a €35 million biopharmaceutical facility, while Merck & Co opened a $120 million facility there in April 2013.
Analysts at Business Monitor International say the Chinese pharma market reached $85.9 billion last year, a rise of almost 20% on 2012, although its trajectory from 2014 and beyond is ‘less certain’.
Biggest plant outside Europe
The new pharmaceutical manufacturing plant is located in the Nantong Economical Technological Development Area (NETDA), in the Greater Shanghai region (Yangtze River Delta area).
Based in NETDA’s BioSpark zone, a high-tech industrial park designed to accommodate life science enterprises, the plant represents an investment of €80 million ($108 million) and will be Merck’s largest manufacturing facility outside of Europe.
The new facility will cover an area of 40,000 square meters, with a possible 20,000 square meters extension. The construction of the site is scheduled to be completed in 2016, with commercial production starting in 2017, the company says in a statement.
The preservation of the environment is a ‘critical consideration’ in the facility’s construction, according to the firm, with a “maximisation of resource efficiency and minimised waste generation” in the course of the manufacturing process.
“We firmly believe that complying with the highest quality, environment, health and safety standards is a natural commitment to the communities where we operate, as well as a prerequisite to ensuring the availability of high-quality medicines for patients,” explains E. Allan Gabor, president and chief executive of Merck Serono China.
He adds: “By building our new facility in the great city of Nantong, we are committing our resources to the clear objective that our drugs be made more readily available for hospitals, doctors and patients in China.
“This emphasis is part of a greater goal to promote not just better access to medicines, but better access to health for every person in this country. This is a key goal for China, and this is Merck Serono’s commitment.”
Ben Adams
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