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News >Bizchina

Merck begins work on new unit

2010-07-13 10:18

SHANGHAI - Drugmaker Merck Sharp & Dohme (MSD) started work on a new manufacturing site in Hangzhou on Monday as part of its expansion plans in China.

The 70,000 sq m manufacturing site in Hangzhou Economic and Technological Area has been set up with a total investment of 1.1 billion yuan and is one of the largest pharmaceutical packaging projects undertaken by Merck in recent times.

The unit is expected to start production by the first quarter of 2012 and will have an annual packaging capacity in excess of 300 million packs. By 2017, the annual output value of the facility may touch 10 billion yuan.

The unit will package solid dosage pharmaceuticals and sterile products for the China market and manufacture clinical/commercial supplies to support future new product introduction and launches. It will also provide strategic growth capabilities and innovative third-party logistics support.

MSD, a trademark of US-based Merck & Co Inc, has been expanding its investment in China since it entered the market in 1992.

"China has become one of Merck's most important strategic markets. The Hangzhou unit reflects the strong belief we have in further serving patients in the nation. We're also pleased that this investment will make a positive contribution to the healthcare system here," said Richard Clark, chairman and chief executive officer of Merck.

The global pharmaceutical sales growth is expected to grow 4 to 6 percent in 2010 to $825 billion, according to the forecast from IMS Health, an industry consulting firm. In China, pharmaceutical sales growth is expected to be more than 20 percent in 2010, and reach $73 billion in 2013, rising to the third in the world.

The nation is taking ambitious steps to extend basic healthcare coverage to a majority of its 1.3 billion people by 2011. That in turn, is sweet music to the expansion plans of global pharmaceutical companies.

The company also participated in the country's new round of healthcare reform and also lowered the price of its best selling cholesterol-cutter Zocor, by more than 50 percent. The price of a pack of seven tablets of 20 mg each was cut from 52.5 yuan to 25 yuan, five tablets of 40 mg each from 62.2 yuan to 30.7 yuan.

 

 

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