Swiss pharmaceutical firm Novartis is to build a US$100 million
research and development center in Shanghai, China, employing 400
scientists, Swiss Radio International (SRI) reported on Monday.
The investment aims to tap into the fast-growing Chinese
pharmacy market, and to take advantage of China's low cost
scientific talent, the report said.
A start-up operation is expected to open next May, and
construction work should begin in July. The center's primary focus
will be the causes of cancer endemic in Asia.
"The level of scientific expertise in China is rising rapidly,"
Novartis CEO Daniel Vasella was quoted by SRI as saying.
"At the same time, the healthcare needs of the Chinese are
growing -- primarily the result of urbanization, lifestyle changes
and associated chronic diseases," he added.
Specialists say that as Chinese salaries and purchasing power
rise, diseases such as hypertension and diabetes are appearing
along with more sedentary lifestyles and richer diets.
Sales of pharmaceuticals in China in 2010 are expected to nearly
double those of 2005, rising from US$13 billion to US$25 billion,
according to Boston Consultancy, an independent consulting group.
The global market is worth US$570 billion.
Novartis also plans to use the Shanghai center to combine modern
drug discovery with traditional Chinese medicine, a move requiring
local expertise, the report said.
In the past, Western drug makers had been wary of making
investments in China because of perceived weaknesses in patent
protection. But the situation has been improving.
(Xinhua News Agency November 7, 2006)