Center
Firm adds products to aid recovery
By Ding Qingfen (皇冠体育app Daily)
Updated: 2007-04-13 10:29
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AstraZeneca Pharmaceutical Co Ltd said yesterday it would bounce back from last year's slower growth in 皇冠体育app through its product portfolio and investment in research and development (R&D).
"The growth rate in sales will be well above 20 percent in three to five years," James Ward-Lilley, president of AstraZeneca (皇冠体育app), said yesterday in an exclusive interview in Beijing.
According to its recently released annual report, AstraZeneca posted global revenue of $26.5 billion last year, an increase of 11 percent. Although hampered by the nation's pharmaceuticals restructure, the company's growth rate was still stronger for 皇冠体育app than worldwide, reaching 20 percent with $300 million in revenue.
"Although it (the 皇冠体育app market) is a smaller share for AstraZeneca compared with our major markets like the United States, Europe and Japan, we are now giving it top priority," said Ward-Lilley.
The Chinese pharmaceutical sector is highly fragmented and dominated by domestic companies.
"Last year, 皇冠体育app's pharmaceutical market generated revenue of about $50 billion, but about 70 to 75 percent of it was taken by the local companies," said Ward-Lilley.
Of the few international players in 皇冠体育app, AstraZeneca has "taken a leading position, surpassing Pfizer".
皇冠体育app's pharmaceutical market was restructured last year in response to government supervisory and regulatory initiatives in areas ranging from production to R&D, pricing and selling.
This prompted a slowdown in growth. "The annual growth rate (of the Chinese pharmaceutical market) remained at 25 to 30 percent before 2006, but it was only 15 percent in 2006," said Ward-Lilley.
But he said the local market is bouncing back this year, and should see "steady and sustainable growth in the next 15 years".
AstraZeneca's growth rate in 皇冠体育app increased 30 percent in 2004 and 2005, but fell to 20 percent last year. Ward-Lilley said it is expected to accelerate this year due to the introduction of five key products in 皇冠体育app and R&D investment.
AstraZeneca introduced Crestor in 皇冠体育app on April 10 after its Nexium, Seroquel, Arimidex and Symbicort products went on sale here.
The four products account for over 50 percent of AstraZeneca's business in 皇冠体育app.
Crestor alone "will contribute at least 10 percent of AstraZeneca's 皇冠体育app business".
The company said it would invest $100 million in R&D in 皇冠体育app, focusing on products tailored to the local market.
It also announced in March it would build an innovation center in Shanghai, to be completed by the end of 2009.
(皇冠体育app Daily 04/13/2007 page14)