Business Development Asia LLC

South East Asian Health News

ISSUE 6, APRIL 1998

REGIONAL

Biota Holdings Ltd.’s new influenza drug, Relenza, successfully completed phase III trials of clinical testing in Australia. It is estimated that there is now a 95% chance that Relenza will enter the market. Biota, an Australian company, developed the new drug in partnership with Glaxo Wellcome. If approved, Relenza is expected to generate worldwide annual revenues of US$1bn. In clinical trials the drug was shown to reduce the duration and severity of flu symptoms when administered soon after the onset of symptoms. (March 30^th 1998)

Cathay Scientific Instrument (CSI) and Diethelm signed an agreement in which CSI was appointed as Diethelm’s authorized distributor in Brunei Darussalam. CSI is a supplier of school scientific equipment, medical equipment, and pharmaceutical products. Diethelm is engaged in the marketing and distribution of consumer, pharmaceutical, health, bio-medical, chemical and engineering products. (March 23^rd 1998)

The China National Medicine Management Information Center will establish a JV, IMS Company, with Japanese partners to promote sales of Japanese medicine and medicinal apparatus in China. The Chinese side will contribute 25% of the total initial capital. (March 18^th 1998)

Eli Lilly and Co. is trying to close a legal loophole that allows Chinese pharmaceutical companies to manufacture and sell illegal versions of Prozac and other drugs that are protected by patents. A 1994 notice issued by China’s State Pharmaceutical Administration allows Chinese drug companies to put out copycat drugs while applications for administrative protection are pending. (March 26^th 1998)

E Merck, the German drug company, is working on plans to enter the Indian OTC market. Sources say that E Merck is unlikely to opt for the JV route for the OTC business and will build on its own distribution strengths. (March 18 1998)

The Indian Institute of Chemical Technology (IICT) and Cytomed, an American biotechnology company, have agreed to develop low cost drugs that treat inflammatory, allergic and gastrointestinal ailments. This new JV comes after the success of an earlier IICT-Cytomed project that developed a cost effective and patentable asthma drug. (March 9^th 1998)

NexMed Inc., a US pharmaceutical and medical devices company, announced a 70/30 JV with Xiaolan Pharmaceuticals Factory of China, called NexMed Pharmaceuticals Zhongshan. The JV will allow NexMed to enter the fast growing Chinese pharmaceutical market and may serve as a low-cost exporting base. Nexmed hopes to use the JV to launch Alprox-TD, a topical impotence treatment, and Viratrol, a herpes treatment device, in China. These drugs are currently in clinical trials. (March 23^rd 1998)

Nicholas Piramal India Ltd. (NPIL) and Boots Plc of the UK are planning a JV for OTC products. NPIL will transfer its brands Aspro and Lacto Calamine to the JV, while Boots will add Strepsils and Sweetex. (March 24^th 1998)

NPH International Holdings Ltd. said it is in talks with third parties to acquire a pharmaceutical group that produces and distributes pharmaceutical products to China. Due diligence work on the pharmaceutical company has commenced, and the target company is expected to have annual revenues of HK$800m (US$100m) in 1999. (March 25^th 1998)

Shinwon JMC, an affiliate of South Korea’s Shinwon Group, has sold 44% of its stake in Pfizer Korea to JV partner Pfizer Inc. This sale brings Pfizer's stake up to 94%, and Pfizer is expected to purchase the remaining 6% soon to realize 100% ownership. Pfizer will invest US$3m to expand its Korean production facilities. (March 6^th 1998)

Tianjin Zhong Xin Pharmaceutical Group, the state-owned Chinese drug maker, has postponed three projects that were to be funded by its IPO. The proposed factories were to produce gelatin and capsule casings and infusion fluids at a total cost of US$36m. The group cited problems in sourcing raw materials and increased competition as reasons for pulling out of the casings production. (March 28^th 1998)