Business Development Asia LLC

South East Asian Health News

ISSUE 7, JUNE 1998

REGIONAL

Australian Hospital Care Ltd (AHCL) announced that its full-year profits would be less than forecast in February due to a continuing decrease in the number of patients with private health insurance. Peremba Group Sdn Bhd, a Malaysian company, owns a 33% stake in AHCL. (June 8^th 1998)

Becton Dickinson (BD), the US medical devices company, has announced its plan to expand its operation in India. BD, whose products include insulin syringes, will begin to manufacture a range of infusion therapy products including disposable needles, syringes and intravenous catheters with an investment of Rup1.2bn (US$29m). (June 10^th 1998)

The Chinese Pharmaceutical Industry announced the development of an anti-cancer injection. The drug, Kang Lai Te, has been successful in the treatment of lung, liver and stomach cancer. The drug has been granted patents in China, the Philippines, Russia and the US. (May 11^th 1998)

Glaxo India reported an 8% increase in net sales from Rup6.5bn (US$155m) in 1996 to Rup7bn (US$170m) in 1997 and a decline in profits by 14% from Rup480m (US$11m) to Rup412m (US$10m). Glaxo has invested Rup200m (US$5m) to expand its betamethasone and ranitidine facilities. The company purchased the Biddle Sawyer Group and acquired products in the oncology, gynecology, ophthalmology and diuretics sectors. (May 26^th 1998)

Hoechst Marion Roussel in India has moved the focus of its business towards the pharmaceutical sector. The company plans to transfer its animal healthcare business to a JV company and to introduce products such as: anti-epileptics, oral anti-diabetics, glycopeptide and fourth generation cephalosporin. HMR has already entered the anti-TB market with the introduction of Rifater and Rifadin. (May 13^th 1998)

Orchid Chemicals and Pharmaceuticals Ltd. of India has established a new division, Orchid Healthcare. Orchid Healthcare will enter the sterile and oral formulations market. Orchid Chemicals is focused on exports, while Orchid Healthcare will focus on the domestic market. The company expects a 25% increase in sales in the next year, 5%-10% of which will be derived from the new division. (May 26^th 1998)

SEQUUS Pharmaceuticals has signed a five-year agreement with Faulding Pharmaceuticals for the marketing, sales and distribution of AMPHOTEC in SE Asia, Australia and New Zealand. AMPHOTEC is a proprietary drug designed to treat progressive and potentially fatal systemic fungal infections. (May 7^th 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)

SmithKline Beecham (SB) has reported that it will introduce a group of vaccines to India in 1998-1999. Included in the group are vaccines for Hepatitis A, a combined vaccine for Hepatitis A&B and a vaccine for chicken pox. SB is waiting for approval from the Drug Controller of India (DCI). (May 9^th 1998)

Sun Pharmaceuticals Industries Ltd is looking to consolidate its investment in Gujarat Lyka Organics Ltd by buying the stake currently held by Sun's associate company, Virtuous Finance Ltd. Company officials said that it was important to consolidate ownership of Gujarat under Sun, as Virtuous was principally a finance company. (May 19^th 1998)

TThe Indian Pharmaceutical Association reported that it expects India to produce US$1.3bn worth of bulk drugs and US$5bn worth of formulations annually by the year 2002. The Indian pharmaceutical industry has seen a record number of mergers and acquisitions in 1997 and 1998. This is being driven by the planned introduction of a patent bill in 2005. (May 26^th 1998)