Novartis to be first pharma to conduct R&D in China

pharmafile | November 7, 2006 | News story | Research and Development |  Asia, China, Novartis, em 

Novartis is to open a major, new pharmaceutical research and development centre in China, becoming the first company in the sector to take the step.

Pharmaceutical companies have been rushing to increase their presence in China in recent years, but have stopped short of committing to core R&D work in the country.

Fears that research and development secrets could be leaked, and the lack of intellectual property laws in China, have been among obstacles cited until now, but Novartis' bold step could set an industry trend.

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GSK and AstraZeneca are among pharma companies which have set up R&D centres in neighbouring India, Asia's other emerging economic superpower, but China has the potential to be the world's biggest market for prescription medicines. Novartis has been attracted to China as much by its high level of well-trained scientists as its low costs, and the company has made a point of appointing a Chinese scientist to lead the centre.

En Li is one of the leading scientists at Novartis' research headquarters in the US, and is one of thousands of western-educated scientists of Chinese descent expected to return to China to take up senior positions.  

Universities in China and the wider region are also producing large numbers of science graduates, providing a ready workforce in Asia.

Novartis says research and development at the site in Shanghai's Zhangjiang Hi-Tech Park will become an integral part of its global research and development network, and will build on existing research alliances in the country.

Work at the centre will initially focus on areas of urgent medical need in China and Asia, particularly the infectious causes of cancer endemic to the region.

"The level of scientific expertise in China is rising rapidly. At the same time, the healthcare needs of the Chinese are growing, primarily the result of urbanisation, lifestyle changes and associated chronic diseases," said Daniel Vasella, chief executive of Novartis.

"The Shanghai centre will allow us to combine modern drug discovery approaches with those of traditional Chinese medicine that have been used to treat patients in China for thousands of years."

The centre will become the eighth site in Novartis' Research and Development network and will be staffed primarily by scientists recruited from Shanghai's emerging cluster of innovative academic, biotech and pharmaceutical research institutions.

Scientists will initially work in a 5,000 square metre start-up facility that is expected to open in May 2007. Construction of a much larger permanent site for around 400 scientists will begin in July 2007. An investment of $100 million has been planned for the design and construction of the two facilities.

A key area of initial research will be infectious causes of cancer. One such disease is liver cancer caused by the hepatitis viruses. Around one-third of the 400 million people infected with the hepatitis B virus are in China, with experts estimating that the virus kills 300,000 people in mainland China each year.

"Shanghai is clearly emerging as a new epicentre of science globally, and is a magnet for the best and the brightest investigators. It is a perfect location for exploring novel scientific approaches for the discovery of new medicines that will ultimately benefit patients in China and around the world," said Dr. Mark Fishman, President of the Novartis Institutes for BioMedical Research.

The Shanghai site will include an integrated exploratory development centre that will work with basic research and local academic centres on developing the concept of mechanism-based medicine and other emerging technologies, such as biomarkers and gene expression profiling.

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