Pharmaceutical Industry Leaders Partnered to Develop High-end Medicines

Fosun Pharma & Lonza Jointly Invest in Zhangjiang Hi-tech Park

On September 6th, 2011, Fosun Pharma announced in Shanghai to institute a joint venture with Lonza Group, the world’s leading supplier in pharmaceutical, healthcare and life sciences industries based in Switzerland. This joint venture in Zhangjiang will develop medicines with both high technology barriers and urgent market needs in China. During the first phase of its operation, capital investment will be RMB 100 million with R&D focus of several therapeutic fields including oncology, infectious and cardio-vesicular diseases.

Leaders from Shanghai Food and Drug Administration, Shanghai Pudong New District Government, Shanghai Zhangjiang Administrative Committee attended the signing ceremony and delivered their congratulations. According to the introduction of Mr. Ding Lei, Executive Vice-Director of Shanghai Zhangjiang Administrative Committee and General Manager of Shanghai Zhangjiang (Group) Co., Ltd, Zhangjiang "Medicine Valley" attracted more than 210 well know domestic and international pharmaceutical companies, and dozens of national level pharmaceutical research institutes and global R&D centers of multinational companies. Being the "Shanghai National Biomedical Science & Technology Industry Base" established by Ministry of Science and Technology, Ministry of Health, State Food and Drug Administration, Chinese Academy of Sciences, as well as the Municipal Government of Shanghai, Zhangjiang High-tech Park is undertaking the state mission of accelerating the innovative development for biomedicine. In his addressing, Mr. Ding Lei said, "We will provide necessary support and assistant to enterprises who registered in Zhangjiang high-tech Park according to the demand of innovative development for biomedicine.  I wish this win-win collaboration will focus on the forefront of international biopharmaceutical technology, will explore innovative commercialization model and globalization strategy, will match high quality capital with high-quality projects, will capture new growth opportunities, and will promote the development of biopharmaceutical industry in Zhangjiang High-tech Park."

In recent years, Fosun Pharma has continuously brought initiatives to pharmaceutical industry development and has achieved rapid progresses. Fosun Pharma is a none-state-owned listed enterprise cultivated in Shanghai, and now the company becomes the front runner in China.  Taking hold of the fast growing Chinese pharmaceutical market, Fosun Pharma specializes in the pharmaceutical & healthcare industry and aims to building a global healthcare enterprise with international competitiveness by combining endogenous growth with exogenous expansion and integration, by innovation and globalization, and by vigorously developing strategic products. Lonza is the global leader in the production and support of active pharmaceutical ingredients (API) both chemically as well as biotechnologically It has many years of experience in pharmaceutical manufacture with world leading technology across small molecule, peptide, large molecule, and cytology and histology areas.

Mr. Harry Boot, Member of Management Committee of Lonza Group, expressed that "Through our interaction with Fosun Pharma over the year, we are deeply impressed by the company’s high internal management standard and transparency, strong sense of social responsibility, as well as its creative management team. Therefore, we choose Fosun Pharma as Lonza’s first and long-term strategic partner in China pharmaceutical industry. For Lonza this entry into the generics market is an important step in expanding our offerings This step is fully in line with our strategy to move closer to the patients and it follows our move into the Biosimilars market. Together with Fosun Pharma, we will provide safe, effective, high quality and affordable drugs for Chinese patients.  Doing so, we continue protecting the intellectual property for our existing customers when creating value for Chinese generic drug market."

Chinese pharmaceutical market is welcoming the golden decade brought by the rapid domestic economy growth and the new medical reform.  IMS estimates that by 2020, China will become the second biggest pharmaceutical market in the world. In addition, the expiration peak of global drug patents is in the next five years, when the patents of drugs with combined revenue of over US$160 billion will expire between 2011 and 2015.  This expiration shall bring great opportunities to pharmaceutical enterprises in China. However, these drugs often have high technical barriers. The purpose of the collaboration between Fosun Pharma and Lonza is to seize the fast-growing market opportunity and to benefit Chinese patients from high quality but affordable drugs that will be developed by the joint venture.