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Asian Medical Industry News

Medical business opportunities in Asia

Publishing
Issue No. 10 April 1st 2002

CONTENT HIGHLIGHTS

Editor:
Paul Gordon

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Banned blood products distributed for ten years in Japan ................... 2


Government approves stem cell production for first time .................... 2
Hospitals to clamp down after run of fatal mistakes ........................... 3
Lung cancer deaths up sharply but other cancers drop ....................... 3
Ministry to abandon repeat tuberculosis shots ..................................... 4
Daiichi to work with whisky-maker on Alzheimers ............................ 4
Stock companies ousted from medical reforms ................................... 5
Yamanouchi seals three-year genomics deal ....................................... 5
Japan In Brief and share price movements ......................................... 6

CHINA
SIIC subsidiary listing masks stable profits in 2001 ............................. 7
HIFU knife finds its first overseas home in watershed export ............ 7
High leukemia drug prices costing lives, say doctors ........................... 8
Cosmetic surgery crackdown to take place this year .......................... 8
China In Brief ................................................................................... 8-9

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March 29th, 2002 unless
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Singapore: Parkway relaunches drive to buy up private clinics ......... 10


Singapore: Raffles slides into first ever loss ...................................... 10
Thailand: launches ultra-cheap HIV cocktail ..................................... 11
Southeast Asia In Brief ..................................................................... 11

Medison plans full recovery within twelve months ............................ 12


Dong Wha puts great store by liver cancer therapy agent ................ 12
SK focuses on bioengineering as future profit driver ........................ 13
Korea In Brief ................................................................................... 13

INDIA
Nicholas Piramal in widespread biotech talks .................................... 14
Medical sales reps confirm month-long strike ................................... 14
Cipla only Asian firm to make WHO list of AIDS drug suppliers ..... 14
WHO list of pre-qualified HIV/AIDS drugs ...................................... 15
Lack of patent law a hindrance to foreign investment, says US ....... 16
India In Brief and Indian share price movements ......................... 16-18
Conference calendar ..................................................................... 19-21
Companies, organizations and research centers in this issue ............. 22

Japan
Banned blood products distributed for
ten years in Japan

Government approves stem cell


production for first time

The Japanese health ministry allegedly continued to


approve a blood product in the country for ten years
after it was banned in the US. The news is another
unwelcome scandal for a ministry seemingly unable to
shake off a reputation for incompetence and inaction.

Japan will start producing stem cells for the first time
after approval by an expert committee of the Ministry
of Education on March 27th. The decision is a boost to
Japans biomedical industry and to an extent overcomes
widespread concern, both nationally and globally, about
the ethics of stem cell research (see box).

The US Food and Drug Administration moved in 1977


to revoke manufacturing approval for blood products
using fibrinogen. The substance had been used as a
blood clotting agent for nearly forty years but there
were concerns that it could cause widespread hepatitis C infection because of its use of pooled blood.

The approval was granted to a specific proposal made


by Norio Nakatsuji, a professor at Kyoto Universitys
Institute for Frontier Medical Sciences. He intends to
use surplus frozen embryos produced by in-vitro fertilization to generate stem cells and distribute them free
of charge to medical researchers with approval to use
them. The first cells should be ready by spring 2003.

Fibrinogen-based products were produced in Japan by


Green Cross (now Mitsubishi Pharma), which had received health ministry approval in 1964. However, even
after the US action, Japanese health officials did nothing about Green Cross for a decade, finally requiring
the company to issue a recall only in 1987.

His team has already accumulated basic data and experience by producing embryonic stem cells of monkeys and mice. The basement of their institute has been
converted to a clean room for cell production. A new,
high-security research center is to open soon. Two
hospitals have already agreed to provide embryos, although it is unclear how many will be needed.

No knowledge
That is despite a health ministry official publishing a
report in 1979 which noted the FDA decision. At least
one official at the Health, Labor and Welfare Ministry
in charge of blood products is quoted as saying he knew
nothing of the FDA decision until this month.

The expert committee has also received two applications for research using stem cells one by Kyoto
Universitys Prof Kazuwa Nakao to produce blood
vessels; and one by Shinshu Universitys Prof
Katsunori Sasaki to generate heart and liver cells. Both
are prepared to use imported stem cells but say domestically-produced cells would widen their choice, as
all cells vary slightly.

AT A GLANCE
Fibrinogen and Hepatitis C scandal
1977 Fibrinogen products banned by the US FDA

AT A GLANCE
1979 Japanese health ministry official notes the
FDA decision in a report, but no action taken

The stem cell debate


The use of embryonic stem cells is controversial because extracting the cells kills a living human embryo. In the US, President Bush last summer decided that federal funding would be permitted only
for stem cell cultures that already existed and were
made from embryos that were to be discarded by
fertility clinics. The aim was to prevent further killing for research purposes of other human embryos.

1987 Health ministry finally orders Green Cross to


recall its fibrinogen products
Fibrinogen products were used on about 283,000
patients in Japan after 1980, and about 10,000 individuals are believed to have been infected with hepatitis C.
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Asian Medical Industry News


Issue No. 10, April 1st, 2002

Japan
Hospitals to clamp down after run of
fatal mistakes

AT A GLANCE
Proposed safety guidelines for hospitals

Hospitals must:

Hospitals in Japan will be ordered to adopt safeguards


to cut down on fatal mistakes, according to a health
ministry directive that could be implemented in October. If hospitals fail to comply, the government could
withhold some of their national health insurance payments. The move follows a series of mistakes by medical professionals leading to the deaths of patients, although in many cases the health ministry itself has been
accused of laxness and negligence.

n Write accident prevention guidelines to ensure that


more than one medical caregiver confirms that
blood to be transfused into a patient is of the
proper type;
n Set up internal reporting systems to study past
accidents and close calls to prevent recurrences;
n Set up safety committees drawn from members
of various hospital departments; and
n Implement training sessions for hospital staff to
heighten awareness of accident prevention measures.

The basic safety guidelines are not new they are


already in place at the 80 hospitals affiliated with medical colleges, which were directed to implement the
measures by spring 2000. Another four special function hospitals have already implemented the requirements. However, under the new program, the Ministry of Health, Labor and Welfare will direct these
medical colleges and all 28,000 hospitals in Japan to
adopt an extended set of guidelines (see box).

Note: Japan has approximately 28,000 hospitals


Source: Japanese Ministry of Health, Labor and Welfare

Lung cancer deaths up sharply but


other cancers drop

Potential fines
Ministry officials say they hope the new requirements
will force the entire hospital to check and prevent accidents. In the past, medical errors have been dealt
with only at a departmental level.

Lung cancer deaths rocketed in Japan from 1975-2000,


according to health ministry statistics. However, overall cancer deaths for men are down for the first time in
a quarter of a century. The figures, released every
five years, show that the lung cancer death rate is up
65% for men, while in women it has risen 48%. Men
also saw a rise in deaths from esophageal, colon and
liver cancer. For women, the figures worsened for
colon, pancreatic and breast cancer. Suicide rates for
men rose, while those for women dropped.

Inspectors will visit the hospital to check that the directives are being met and that sufficient personnel
are employed to enable this. If the guidelines are being
infringed, ministry officials will be able to penalize the
hospitals by withholding payments from the national
health insurance program. Hospitals receive 8,00012,000 (US$60-90) daily from the health insurance
program for each inpatient. About 100 (US$0.75)
would be deducted per payment as a penalty.

AT A GLANCE
Death rates from lung cancer in Japan
(deaths per 100,000 people)

Private protection

1975 2000 Change


Lung cancer - men
28.1 46.3
64.8%
Lung cancer - women
8.3 12.3
48.2%

Private hospitals are to some extent shielded from the


changes. At present, only public hospitals are required
to file a report to the health ministry following a medical accident. That will not change under the new rules.

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Source: Japanese Ministry of Health, Labor and Welfare

Asian Medical Industry News


Issue No. 10, April 1st, 2002

Japan
Ministry to abandon repeat
tuberculosis shots

Daiichi to work with whisky-maker


on Alzheimers

The health ministry is to scrap repeat inoculations for


tuberculosis, instead requiring children to have just a
single injection. The ministry says repeat jabs are unnecessary and a single shot in early childhood is sufficient.

Daiichi Pharmaceutical says it will co-operate with


Suntory, a whisky producer which is moving into the
medical field, to develop a new drug to treat Alzheimers Disease.
The product, memantine hydrochloride, was developed
by German firm Merz and licensed to Suntory, which
has initiated Phase II trials in Japan for moderate to
severe Alzheimers. The agreement with Daiichi is to
develop a treatment for mild to moderate Alzheimers.
Suntory will apply for manufacturing approval while
Daiichi will take care of sales and marketing.

Currently, children are given tuberculin tests at each


of three stages at age 4 or younger, in the first
grade and in the first year of junior high school. Authorities are required by law to inject them with the
BCG vaccine, which is made from a weakened strain
of the TB bacillus, if they do not test positive for past
exposure to the bacillus. A child can receive up to five
shots under the system.

The NMDA touch

Japan lags behind

Memantine acts as an N-methyl-D-aspartate (NMDA)


receptor antagonist that blocks excessive glutamate.
Daiichi says that extensive preclinical and clinical studies suggest that it can slow the progression of the disease by protecting neurons from over stimulation by
glutamate. Most Alzheimers drugs in Japan are acetylcholine esterase inhibitors.

The proposed new rules will aim to ensure that infants


receive an inoculation and that children are brought in
for checkups at 18 months and at three years of age.
The World Health Organization said in 1995 there was
no proof that repeat injections of BCG had any positive effect, and recommended against the practice.
Japanese doctors had continued to insist that multiple
shots are necessary but their case has been undermined by South Korea and Hong Kong, which abolished repeat injections in 1997 and 2000 respectively
without any adverse consequences.

Merz is also developing memantine in Europe and the


US via licensees. In February this year, the EU commission received a recommendation from the Committee of Proprietary Medicinal Products (CPMP) to
approve memantine for the treatment of moderately
severe to severe Alzheimers disease and the drug is
expected to be launched during the second half of this
year.

X-ray recommendation
The health ministry report also suggests that people
starting at new schools or workplaces should receive
chest X-rays, which can detect early signs of tuberculosis, between the ages of 15 and 39. Those aged 40
or over and anyone who comes into contact with TB
sufferers regularly should be X-rayed annually.

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However, there is resistance to this proposal. About


25 million people receive chest X-rays each year, but
the method rarely finds new cases of tuberculosis and
there are concerns that the exposure to radiation may
be more of a risk than undetected TB.
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Asian Medical Industry News


Issue No. 10, April 1st, 2002

Japan
Stock companies ousted from medical
reforms

JAPAN IN BRIEF

The Japanese cabinet was expected to adopt a revised three-year deregulation plan on March 29th, as
Asian Medical Industry News went to press, aiming
for more competition in child and nursing care among
other sectors. However, controversial proposals to allow stock companies to run medical institutions will
not make the cut.

Accused settle and extend CJD compensation


The government, manufacturer B Braun Melsungen
and importer Nihon BSS have finally agreed to compensate all plaintiffs in the dura mater infection scandal. The court had already ruled in favor of 20 plaintiffs who contracted Creutzfeld-Jakob Disease through
contaminated dura mater transplants, awarding them
1.16 billion (US$8.75 million). Another 21 plaintiffs
were excluded because they joined the lawsuit too late.
However, the defendants say they will offer the courts
recommended compensation to all parties. The case
has taken five years and four months to settle. Signing
the settlement document, health minister Chikara
Sakaguchi expressed his apologies the first verbal
apology given by the government over the matter.

The government is still keen to attract private sector


involvement in medical service provision, but Liberal
Democrat party members were strongly opposed to
allowing stock companies to take full control of hospitals. Lawmakers felt that financially weaker hospitals
would see a drop in the quality of healthcare provision
as private owners sought to balance the books.

Takeda sets up in Ireland

The deregulation plan is a revised version of a threeyear program originally adopted in March 2001. It adds
several priority areas, such as agriculture, energy and
finance, on top of the existing six priority areas medical services, elderly and child care, employment, education, environment and the urban revitalization.

Takeda Chemical is to build a Euro 80 million (US$70


million) bulk pharmaceutical plant in Ireland. The plant
will be its third in Europe but is the first to manufacture bulk drugs outside Japan. The site will be near the
Irish capital, Dublin. The move is part of Takedas strategy to target the European and US markets in the face
of stagnating demand at home.

Yamanouchi seals three-year


genomics deal

Konica sets up medical unit


Konica, Japans second-largest photographic film
maker, is to create a separate business unit for its
medical operations. The company, raising its profit
outlook on March 14th, said it is diversifying away from
camera film and into specialty films for liquid crystal
displays and medical equipment. It is therefore restructuring into four business units: consumer imaging, medical and graphics, office documents and optical technology. The structure will take effect from March 2003.

Yamanouchi Pharmaceutical has signed a three-year


collaborative research agreement with US bioventure
firm Metabolex for the development of genomic drugs.
The two companies aim to develop world-class treatments for type 2 diabetes, insulin-resistant diabetes,
impaired glucose tolerance and obesity, while attempting to shorten the development period for such drugs.
The companies will use Metabolex database of genes
related to the development and progression of insulinresistant diabetes and obesity to identify and validate
drugs suitable against the illnesses. The two companies will verify disease-related functions of selected
targets using animal models and a proprietary gene
function assessment system, and Yamanouchi will initiate screening and identification of compounds that
work with the selected targets.
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Otsuka Pharma and Snow Brand join up


Otsuka Pharmaceutical and Snow Brand Milk Products are to form a joint venture in the field of clinical
nutrition. The company will be held 60% by Otsuka,
which will also provide the president. The companies
already have an alliance in the clinical nutrition field
and have produced two enteral nutritional agents.

Asian Medical Industry News


Issue No. 10, April 1st, 2002

Japan
Share price movements ranked by performance since Jan 1st
Company

Stock
Core
Code Exchange business

Toyama Chemical
Tanabe Seiyaku
Shimadzu
Azwell
SSP
Kaken Pharma
Ono Pharma
Mochida Pharma
Suzuken
Terumo Corp
Santen Pharma
Vital-Net (Sun-S)
Eisai
Chugai Pharma
Daiichi Pharma
Taisho Pharma
Dainippon Pharma
Kuraya Sanseido
Fujisawa Pharma
Yamanouchi Pharma
Hitachi Medical
Tsumura
Shionogi
Takeda Chemical
Mitsubishi Pharma
Olympus Optical
Sankyo
Banyu Pharma
Hisamitsu Pharma

4518
4508
7701
9825
4537
4521
4528
4534
9987
4543
4536
9916
4523
4519
4505
4535
4506
7459
4511
4503
6910
4540
4507
4502
4509
7733
4501
4515
4530

Tokyo
Tokyo
Tokyo
Osaka
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo

Price ()
Price change since
Mkt Cap
March 29 Issue 9 1/1/02 1/1/01 (US$mill)

Pharmaceuticals
Pharmaceuticals
Medical devices
Wholesale
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Wholesale
Pharmaceuticals
Pharmaceuticals
Wholesale
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Wholesale
Pharmaceuticals
Pharmaceuticals
Medical devices
Herbal medicine
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Medical devices
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals

530 -11.2% 29.3% 28.3%


1,230
6.0%
5.3% 28.1%
320 -3.9%
5.3% -16.4%
462
8.2%
5.0% -11.2%
962 -2.5%
1.8%
5.6%
711 -4.4% -0.4% 12.3%
4,010
2.8% -1.0% -8.9%
757 -4.5% -1.0%
7.7%
2,040
5.2% -1.4% -32.0%
1,660 -6.7% -2.2% -33.6%
1,452 -5.5% -2.6% -35.5%
725 -6.0% -3.3% -14.7%
3,150 -3.4% -3.4% -21.3%
1,456 -4.2% -4.1% -23.4%
2,415 -5.3% -5.3% -29.0%
1,946 -5.1% -5.5% -37.0%
1,245 -5.8% -6.4% -34.1%
521 -6.1% -6.5% -43.0%
2,810 -9.9% -7.0% -25.7%
3,210 -10.8% -7.2% -35.0%
1,096 -1.3% -8.3% -6.3%
410 -9.7% -9.9% 30.2%
1,990 -2.2% -11.2% -14.6%
5,220 -4.7% -12.0% -22.8%
1,296 -15.3% -12.3% 44.0%
1,650 -0.7% -12.5% -16.5%
1,941 -1.7% -13.5% -29.2%
1,665 -7.0% -14.6% -35.6%
1,501
0.3% -16.6% -24.3%

600
2,461
645
314
882
507
3,717
826
1,197
2,643
1,016
229
7,048
2,770
5,223
5,006
1,581
538
6,966
8,753
327
217
5,232
34,779
2,688
3,295
6,586
3,316
1,151

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Asian Medical Industry News


Issue No. 10, April 1st, 2002

China
The future is technology

SIIC subsidiary listing masks stable


profits in 2001

Newer areas the company is investigating include


telemedicine and biomedicine. In December 2000, the
firm bought 38% of Biolight, a maker of colposcopes
and patient monitors. In July 2001, SIIC purchased 11%
of E-COM Technology, which produces X-ray imaging,
storage and transmission systems.

SIIC Medical Technology says profits trebled in the


year ended December 2001. However, the results include a one-off gain from the listing on the Shanghai
stockmarket of a subsidiary excluding this, net profit
was rather more modest.

On the research front, SIIC is developing a range of


new products, including: Ipraflavone for osteoporosis;
S-PPM for childhood asthma; B-TLS for liver disease;
and Anntiflu for treatment of influenza.

Total sales at SIIC Medtech Shanghai-based but


listed in Hong Kong came in at HK$723.9 million
(US$92.8 million), up 36% compared with the previous year. Net profit was HK$232.7 million
(US$29.8 million), but that included HK$155 million
(US$19.9 million) from the March 2001 listing of
Shanghai Jahwa, a producer of skin care products and
mosquito repellent.

AT A GLANCE
SIIC Medical Technology full year results
(US$mill)

SIIC says profit was held back by the end of a tax


holiday for one of its major subsidiaries, Chia Tai
Qingchunbao Pharmaceutical, whose tax rate jumped
from 12% to 24%. However, SIIC also cites a depressed local and global economy, government reforms
and the entry of overseas firms into the domestic market in the run-up to entry to the World Trade Organization.

Sales (HK$)
Net profit (HK$)
Net profit excl listing
of Shanghai Jahwa

9.9

9.3

+6.5%

HIFU knife finds its first overseas


home in watershed export

Tender system to hurt prices


A major pricing concern, according to SIIC chairman
Lu Ming Fang, is the introduction by the government
of a centralized system of purchasing by tender. Lu
expects prices of pharmaceuticals to fall this year as a
result. However, non-pharmaceutical sales are not covered by the system and the company has therefore
increased the proportion of sales attributable to medical equipment to 36%, up from 15%.

The HIFU knife, an ultrasound knife developed and


manufactured in China, has been exported to its first
overseas buyer, in the UK. The High Intensity Focused
Ultrasound knife has been sold to the Churchill Hospital at Oxford University.
It is the first time that large medical equipment wholly
developed and manufactured in China has been exported to a foreign country, according to the People
Daily. The knife was developed by Chongqing Haifu
(HIFU) Technology and used for the first time in a
surgical procedure in Chongqing in 1997.

The company is also increasing its focus on traditional


Chinese medicine (TCM) and has established a committee of 13 local and overseas experts to identify product and business opportunities. One of the first products being pushed is Ningxia Lycium, a wolfberry derivative sold as an antioxidant. SIIC also bought a 24%
stake in TCM manufacturer Hangzhou Hu Xing Yu
Tang State Medicine at the end of last year.

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Full year ended


Dec 2001 Dec 2000 Change
92.8
68.4
+35.6%
29.8
9.3 +221.8%

The next overseas buyer has already been lined up


in Singapore and 15 hospitals within China have
purchased the HIFU knife.

Asian Medical Industry News


Issue No. 10, April 1st, 2002

China
standards for medical qualifications and equipment. The
ministrys position is that surgery such as breast implants is different from common beauty care and should
only be done in clinics or hospitals however, other
facilities will be allowed to offer surgery as long as
they meet the minimum standards.

High leukemia drug prices costing


lives, say doctors
Physicians in China have warned that leukemia drugs
are so expensive that 92% of children with the disease
are not receiving adequate treatment. Speaking at the
International Conference for the Cure of Childhood
Cancer in China, held in Shanghai this month, doctors
said that means almost 37,000 children are at risk every
year.

Wealth no good without beauty


Rising disposable incomes in China have led to a demand for cosmetic surgery which has far outpaced
supply. Beijing has just four centers to serve ten million residents. The plastic surgery clinic at Peking
Union Medical College receives more than 200 visitors a day some ten times more than in 1998.

Treatment for leukemia in China costs around


Yuan 200,000 (US$24,150). That makes it unaffordable
for most people in rural areas, where medical staff
estimate that almost half of child sufferers dont complete their treatment and half receive none at all. Much
of the blame is put on drug prices, although staff admit
that lack of access to medical technology or the skills
to use it is also a concern.

AT A GLANCE
When beauty surgery goes wrong
The government estimates that around 200,000 Chinese citizens have been disfigured by poor quality
cosmetic surgery in the last ten years. There are
around one million beauty salons in the country.

AT A GLANCE
Childhood leukemia in China
Leukemia is estimated to affect 40,000 children annually in China. Doctors estimate that 92% of these
receive either incomplete treatment or no treatment
at all. The cure rate for childhood leukemia in western countries is approximately 80%, a level that some
parts of China achieve but which most do not.

CHINA IN BRIEF
Dubious drugs adverts to be tackled in 2002
The State Administration for Industry and Commerce
says it will crack down on poor quality and misleading
pharmaceutical advertising this year, after a survey
showing that the number of misleading drug adverts
rose sharply in 2001. The Administration says it handled 15,409 cases of misleading drug adverts last year,
up 10% on 2000. A new law was passed in December
giving the Administration the power to punish companies found to have misled the public.

Cosmetic surgery crackdown to take


place this year
The Chinese government will clamp down on poor
quality cosmetic surgeries this year, after rising complaints from customers. The one million or so beauty
parlors in the country often employ untrained staff in
an effort to cut costs and meet demand.

Medical malpractice comes to the fore


Legislators are urging hospitals to buy medical malpractice insurance for medical staff as law suits by
patients and relatives increase. Members of the Ninth
National Peoples Congress have suggested that an
insurance system would help both patients and doctors, as it would encourage the latter to undertake riskier

The Ministry of Health has formulated new regulations on cosmetic surgery that will come into effect on
May 1st. All places that want to offer cosmetic surgery must have official licences and meet specified
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Asian Medical Industry News


Issue No. 10, April 1st, 2002

China
first time China has taken part in such a study, and the
response has been enthusiastic hundreds of people
in Shanghai queued to fill in the application forms. The
results will be published in the third quarter of this year.

procedures which could save lives with worrying about


legal action. The insurance industry, unsurprisingly,
backs the idea, but some doctors say the procedure
for assessing medical accidents should first be overhauled. Judgement is currently passed largely by doctors, who are often seen as biased.

AT A GLANCE

Nanyang joins national push for TCM

Insomnia in China and around the world

The city government of Nanyang in Henan Province


has launched a plan to turn traditional Chinese medicine (TCM) into a modern industry. The city will establish a chain system integrating TCM education with
research, planting, processing, marketing and clinical
treatments, according to Party Secretary Ma Wangling.
The move is in line with a national initiative to promote
TCM by opening overseas clinics and encouraging
academic and commercial exchanges.

The China Medical Association estimates that around


300 million Chinese adults have sleep problems,
mostly in economically developed areas. A survey in
Shanghai suggests that the number of insomnia patients increased 20% in the first two months of this
year, compared with the same period last year. Half
of those sufferers were aged 31-51 years.

AT A GLANCE

The World Health Organization (WHO) estimates


sleep disorders affect 27% of the world population.

The home of traditional Chinese medicine

Shenzhen cornea list growing

Nanyang was the home of Zhang Zhongjing, the Eastern Han Dynasty (AD 25-220) scholar who is considered the father of traditional Chinese medicine.

More than 100 people receive cornea transplants in


Shenzhen each year, but the waiting list is still increasing by 60 people annually, according to a report in the
Shenzhen Commercial Daily. The newspaper says
that eye disease is common in the city because of poor
eye protection awareness. However, very few people
donate their eyes after death since June 1999, only
14 people have donated their corneas. Sixty others have
registered to do so.

Asian biotech summit to be held in China


The first Asian Biotech Summit will be held in Beijing
in June this year. Co-organized by the Pacific Rim
Forum and the China Council for the Promotion of International Trade, the summit will have about 500 participants from the regions industries, institutions and
government bodies. Alan Carroll, executive chairman
of the Pacific Rim Forum, said the completion of the
sequencing of the human genome in early 2001 marked
a major watershed in the emergence of life science as
an industry. He expects a biotech boom in China as
the country has plenty of young scientists and the government is eager to develop science and technology.

Ten-year wait for TCM book finally over


Chinas first comprehensive bibliography of traditional
Chinese medicine and pharmacology has been completed. The Dictionary of Traditional Chinese Medical
Books and Records, published by the Shanghai Science and Technology Press, lists more than 23,000
books and records on traditional Chinese medicine and
pharmacology written from the pre-Qin Dynasty (2,000
years ago) to the end of the 20th century. The fivemillion-character dictionary, which lists both domestic
books and rare ones kept overseas, took more than
300 medical experts over ten years to compile. Experts say it will be invaluable to the research and
development of traditional Chinese medicine.

China queues to sleep


Some 10,000 residents of Beijing, Shanghai, Guangzhou
and Hangzhou have signed up to take part in a worldwide survey on sleep patterns. The Sleep Epidemiology Survey, sponsored by the International Foundation for Mental Health and Neuro-Science, will monitor 50,000 people in around 20 countries. This is the
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Asian Medical Industry News


Issue No. 10, April 1st, 2002

Southeast Asia
GP market by tying up with Guardian Pharmacy. The
goal then was to set up 40 GP clinics under the Shenton
name over five years, but only one clinic has been established. It is a tough market: rival provider Raffles
Medical has 60 clinics in Singapore; government polyclinics have started night operations; and there are
hundreds of neighbourhood GPs.

Parkway relaunches drive to buy up


private clinics
Singaporean healthcare provider Parkway Holdings is
to attempt another acquisition spree to grow its clinic
business three years after the collapse of its plan
to set up 40 clinics with Guardian Pharmacy, according to the Business Times. The newspaper says about
50 general practitioner (GP) clinics were approached
five months ago by negotiator OCBC to sell their practices to a well-established locally listed healthcare
provider.

Raffles slides into first ever loss on


property provisions
Singapores Raffles Medical Group (RMG) has reported a S$8.7 million (US$4.7 million) loss for the year
ended December 31st the first loss in its 26-year
history. Raffles Hospital, in its first year of operation,
contributed about S$27 million (US$14.7 million) to
sales and helped boost turnover by 22%, but also contributed S$5.7 million (US$3.1 million) to the overall
loss.

Parkway is reported to have been prepared to pay eight


to nine times the annual revenue of the clinics. However, it was payable only in stock options one reason that around half declined. There were also concerns about becoming an employee of Parkway rather
than remaining independent.

RMGs strategy of using its 65 clinics to refer patients


to its hospital seems to have worked, with about a third
of the hospitals revenue coming from such referrals.
The occupancy rate of the 100 operational beds was
40%; 200 beds are expected to be in operation by the
end of the year. The capacity is 380 beds. Chairman
Loo Choon Yong says beds will be opened according
to demand.

Which came first?


The company declined to comment on the report, but
a source says the GPs themselves probably formed a
group and approached Parkway about a buyout. The
source also suggests that while eight to nine times earnings would be acceptable for a stock buyout, the firm
would only pay around five times in a cash deal.

Exceptional losses and property provisions dragged


RMGs performance into the red. It wrote off
S$700,000 (US$380,000) in healthcare IT firm Dr
World and S$1 million (US$543 million) for some of its
clinic properties. The company expects things to improve this year and says it is looking for acquisitions
and investments. Targets include a medical centre or
a chain of clinics.

Analysts believe Parkway is interested in diversifying


its healthcare strategy and is therefore still in talks.
The company has 19 GP clinics branded as Shenton
including eight in the central business district in
a sector it believes is ripe for expansion.
Hospital squeeze
Meanwhile, its three hospitals in Singapore Mount
Elizabeth, Gleneagles and East Shore are seeing
profit margins squeezed because of health reforms and
the weak economy. The three accounted for 62% of
the groups revenues of S$354.5 million (US$192.7 million) for the year ended December 2001. Operating
margins at the hospitals slipped from 32.4% in 2000 to
31.2% last year.

AT A GLANCE
Raffles Medical Group full year results
(US$mill)

Sales (HK$)
Net profit (HK$)

In March 1999, Parkway tried to boost its share of the


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10

Full year ended


Dec 2001 Dec 2000 Change
41.7
(4.7)

34.1
2.9

+22.1%
n/a

Asian Medical Industry News


Issue No. 10, April 1st, 2002

Southeast Asia
Thailand launches ultra-cheap HIV
cocktail

SOUTHEAST ASIA IN BRIEF


Pfizer joins in for record fake Viagra haul

Thailand will this month start marketing what may be


the worlds cheapest cocktail of anti-HIV drugs. The
Government Pharmaceutical Organisation (GPO) has
manufactured the treatment, GPO-Vir, which will sell
for just US$0.45 per pill, or US$27 per month. The
current average cost of anti-HIV drugs is around
US$114 per month.

Thai police have seized 100,000 fake Viagra pills in


the biggest haul of its kind in the country. US multinational Pfizer, Viagras manufacturer, helped with the
investigation and actually accompanied police on the
three raids on the outskirts of Bangkok. The gang
three Turks and one Thai had taken orders for the
erectile dysfunction drug via the Internet, which the
police used to trace them. The fake pills were a combination of diluted genuine Viagra and tapioca starch.
They had a production cost of less than 20 baht
(US$0.46) per pill, but were sold for 20 times that.

GPO-Vir is a combination of the anti-retrovirals


nevirapine (Boehringer Ingelheim), stavudine (BristolMyers Squibb) and lamivudine (GlaxoSmithKline),
which slow the replication of the virus and so improve
patient health. GPO, which will hold a ten-year patent
on the pill, says it has already produced 120,000 pills.
The manufacturers of the three individual drugs do not
hold patents in Thailand.

Indonesia stresses plans for state drug firms


Indonesias State Enterprises Minister has reiterated
the governments intention to accelerate the sale of
state assets this year, including two nationalized drug
firms. Speaking at an investment conference in Hong
Kong, Laksamana Sukardi noted that the governments
policy is to speed the sale of stakes in highly-competitive industries. That includes Indonesias largest
drugs firm, Indofarma, in which a minority stake is to
be sold contrary to earlier reports that 51% would
be disposed of (see Issue 8, p 10). Laksamana told
reporters that Kimia Farma would be disposed of by
year end. Indonesia has the worlds fourth-biggest
population, with 200 million people.

Market gap
The move makes Thailand the second country, after
India (where it was produced by Cipla), to make a
generic form of the cocktail. It is significant because
under the World Trade Organizations TRIPS agreement, revised in November, other developing countries
may be able to import the pill from Thailand.
TRIPS allows any country suffering a health emergency to issue a compulsory license allowing it to produce or import cheap generic drugs. The November
declaration mentioned HIV/AIDS as a disease which
could fall into the category of health emergency (see
Issue 3, pp 2-3).

Siemens ties up with Medical Online


Malaysias Medical Online and Siemens Malaysia have
signed a memorandum of understanding to improve
access to the countrys trauma care system. The deal
use Siemens technology and expertize to build on Medical Onlines RM100 million (US$26.3 million) telehealth
project. The service is expected to be available by the
end of the year.

Lobby groups for cheaper HIV medicines in the developing world have welcomed the move. Medecins
Sans Frontieres also noted that the three-drug cocktail
has never been commercially produced in the west,
despite a proven efficacy, because the three patent
holders could not agree how to divide the profits.

AT A GLANCE

AT A GLANCE

Thailand is estimated by the United Nations to have


700,000 sufferers of HIV/AIDS.

Injury and trauma kill around 6,000 Malaysians every


year, with two-thirds of fatalities aged 12-40 years.

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11

Asian Medical Industry News


Issue No. 10, April 1st, 2002

Korea
vested at its peak have been cut out. CEO Lee Seungwoo says he expects to be able to rely on profits as
well and claims that all loans, including interest, will be
paid by 2011.

Medison plans full recovery within


twelve months
Medison, Koreas highest-profile and former flagship
medical equipment manufacturer, says it will be back
on its feet within a year after being approved for bankruptcy protection. The firm, which collapsed in January with debts of around US$300 million (see Issue 7,
pp 11-12), was granted court receivership by the
Chuncheon District Court on March 21st.

Lee also says he is in talks with overseas players which


could lead to strategic alliances and cash injections.
Earlier rumors had centred on a deal with Philips, Siemens or General Electric, but Lee has declined to name
names. He adds that a deal with a Korean firm is not
out of the question. Medison halted its arrangements
with overseas distribution partners when it collapsed
but will now attempt to restart those.

Maintaining value
The decision was expected, as even following a steep
fall in its share price, Medison is still valued at around
Won 256 billion (US$194 million), substantially above
its asset value of Won 183 billion (US$138 million).
The company has a 63% share of the Won 100 billion
(US$76 million) domestic ultrasound market and claims
to be the world leader for gynecological ultrasound,
with a 30% share of the global market.

Medison shares were suspended when it defaulted on


its debt but resumed trading on January 31st, since
when they have fallen by half.

AT A GLANCE
Medison financial results

Medison also accounts for half of Koreas exports of


high-tech medical equipment including providing
most of Dutch company Philips low-end scanners
and local manufacturers have suggested this is reason
enough to protect it from full bankruptcy.
That is essentially why court receivership was so vital
for the companys survival. Under Korean law, a courtappointed administrator will now reorganize the firms
financial management and decision-making procedures
and decide how best to reimburse creditors. However,
the intention is where possible to maintain the firm as
an ongoing business. Most manufacturing and trading
operations continue as normal in the interim, which
leaves Medison the chance to regain its focus on its
core competency ultrasound.

Year ended
Dec 2000

Sales
Net profit

156.9
(88.3)

Dong Wha puts great store by liver


cancer therapy agent
Milican Inj, a radioactive treatment for liver cancer
manufactured by Dong Wha Pharmaceutical, has been
selected as one of Koreas Ten Best New Technologies of 2001, according to the company. The award
has increased Dong Whas determination to push the
product globally and turn it in to one of its leading revenue generators over the next few years.

Overseas talks
However, there is no doubt that the company urgently
needs fresh funds to pay off creditors and roll out new
technology, primarily a 3D ultrasound scanner planned
for the end of the year. The cash will largely come
from asset sales, although all but six of the 40 or so
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(US$mill)

Standing for miracle liver cancer injection, Milican


Inj is an injectable isotope a complex of 166 Holmium and chitosan which radiates beta-rays to treat
cancer cells selectively. It changes to a colloidal gel in
the tumor lesion and the 166 Holmium kills the cancer

12

Asian Medical Industry News


Issue No. 10, April 1st, 2002

Korea
year for the first time ever, encouraging the group to
move its investment timetable up six months. SK also
plans to increase its Won 200 billion (US$151.3 million) annual investment plan for the field.

cells. The lesion can be treated by a single intramural


injection.
Dong Wha describes the product as the worlds first
radioactive medication for liver cancer treatment and
an ideal substitute for surgery. It claims a 77.7% efficacy rate and a response rate of 87.3%. Domestic
sales are forecast to reach Won 3 billion (US$2.3 million) in 2002, even though Milican Inj will not be put
onto the market until August. Turnover is targeted at
Won 10 billion (US$7.6 million) annually by 2006.

Push for the top


The groups four bioengineering-related subsidiaries
include SK Corp and SK Chemical, involved in R&D,
and SK Pharmaceutical and Dongshin Pharmaceutical, in charge of production and marketing. SK Chemical recently launched a medical drug operation in a bid
to become one of the top ten pharmaceutical companies in the country.

Courting royalties
The company says the technology will also be exported
to China for liver cancer treatment and to the European Union and the US for the treatment of prostate
cancer and rheumatoid arthritis. It is registered for license in Korea, the US and Japan and has applications pending in Europe and China. Royalties are forecast at US$50 million upfront for the technology license and US$5 million annually thereafter.

SK also says that China will become the groups core


production outpost for its bio-engineering operations,
adding that it has recently decided to make investments
in Chinese herbal medicine. The group recently started
construction of a bioengineering R&D institute in
Shanghai, investing a total of Won 10 billion
(US$7.6 million).

KOREA IN BRIEF

AT A GLANCE
SIIC Medical Technology full year results

Morning after pill hits Korea at last


(US$mill)

Sales
Net profit

Distributor Hyundai Pharm has introduced the emergency contraceptive pill NorLevo to Korea. The product prevents pregnancy if taken twice in 72 hours after unprotected intercourse and is now available at pharmacies with a doctors prescription. NorLevo is produced by HRA Pharma of France. The pill has been
the source of much debate in Korea which has delayed its arrival Hyundai applied for domestic sales
approval in May 2001.

Full year ended


Mar 2001 Mar 2000 Change
95.6
3.1

104.6
(5.8)

-8.5%
n/a

SK focuses on bioengineering as
future profit driver

National Health Service ready to cut demand


SK Group, Koreas third largest business conglomerate is building up investment plans for its bioengineering division, according to The Digital Chosun. The
company expects to expand its original investments
and accelerate its investment schedule to become the
countrys industry leader.

The Korean National Health Service has published


guidelines for reform which outline its plans to tighten
its administrative controls. Under new president Lee
Sang-yong, the NHS aims to revamp its controls to cut
down on claims for unnecessary medical treatment.
This includes a campaign to induce healthcare providers to give receipts, preferably by legislation, and a
push to boost collection of insurance fees to 100%.

Sales by the bioengineering operations are reported to


have reached Won 100 billion (US$75.6 million) last
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13

Asian Medical Industry News


Issue No. 10, April 1st, 2002

India
Nicholas Piramal in widespread
biotech talks

Cipla only Asian company to make


WHO list of AIDS drug suppliers

Nicholas Piramal (NPIL) is reported to be talking to


Italian firm Chiesi Pharmaceutical to import curosur, a
biotech drug for premature babies, and could also bring
in peg interferon, a biotech drug for cancer, by entering into a licensing and marketing deal with Roche Pharmaceutical. NPIL already markets Roches Roferon
A, an older version of peg interferon.

Cipla has become the only Asian drug manufacturer


to be listed by the World Health Organization as a recommended provider of HIV/AIDS drugs for poor countries. The list (see page 15) was published on March
20th as part of a project by the WHO, the UN,
UNAIDS, Unicef and the World Bank.
The idea of the move is that international researchbased companies and alternative generic suppliers can
be assessed to the same standards, thereby helping
governments and international agencies to procure
quality products at competitive prices.

The two deals are part of NPILs drive to expand its


Rs 500 million (US$10.2 million) biotech operation. It
is also involved in discussions with several other firms,
reportedly in the market for critical care medicine.
NPIL says it is not looking for equity deals, but will
focus on co-licensing for the Indian market. The company already has 50:50 joint venture with US-based
Cytran to develop new molecules for sale in India.

The 40 recommended drugs include 11 antiretrovirals


and five drugs for opportunistic infections, from eight
branded and generic manufacturers. Ten of the drugs
come from Cipla, which produces nevirapine,
zidovudine (AZT), and lamivudine (3TC) one of
the most common cocktails of AIDS drugs.

Medical sales reps confirm monthlong strike

Far from perfect

The Federation of Medical and Sales Representatives


Association of India (FMRAI) says it will conduct a
month long nationwide relay strike starting April 9th.
The organization is upset about the impact of globalization and has issued a list of 27 complaints.

The list, which will be updated regularly, is not meant


to be definitive, and indeed holes have already been
picked in it. Although Cipla was the only Asian firm
mentioned, HIV/AIDS drugs are also manufactured
by companies such as Aurobindo Pharma, Ranbaxy
Laboratories and Hetero. One issue is that these companies manufacture products which have no equivalent in the west.

FMRAI vice-president J S Mazumdar says the complaints include drug pricing, commercialization of the
health care system, the growing dependence on imports, large-scale black marketing by pharmaceutical
companies for tax evasion and the entry of spurious
medicines into the market.

The list also includes Ciplas generic version of aciclovir


cream, even though the WHOs own guidelines for
the management of sexually transmitted infections state
that topical therapy [of herpes] with aciclovir produces only minimal shortening of the duration of symptomatic episodes and is not recommended.

The strike will take the form of a continuous series of


three-day strikes by medical sales representatives in
individual states. The disruption will last one month in
total. The FMRAI will also support a strike by public
sector employees on April 2nd.

Although not mentioned as an intended aim, commentators have also suggested that the list may intensify
price pressure on multinational drug manufacturers.
These companies are already facing calls from sufferers and politicians to drop the prices of products to
levels which poor countries can more easily afford.

Mazumdar alleges that some companies sell up to 25%


of their medicines worth a total of Rs 20 billion
(US$410 million) on the black market to evade taxes.
He also accuses politicians and police of being involved.
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14

Asian Medical Industry News


Issue No. 10, April 1st, 2002

India
AT A GLANCE
WHO list of pre-qualified HIV/AIDS drugs
Name

Strength

Form

Supplier

Manufacturing site

Abacavir
Abacavir
Aciclovir
Amprenavir
Amprenavir
Ciprofloxacin
Ciprofloxacin
Ciprofloxacin
Ciprofloxacin
Ciprofloxacin
Ciprofloxacin
Ciprofloxacin
Didanosine
Didanosine
Didanosine
Didanosine
Didanosine
Lamivudine
Lamivudine
Lamivudine
Lamivudine/Zidovudine
Lamivudine/Zidovudine/Abacavir
Nevirapine
Ritonavir

300mg
20mg/ml
5%
15mg/ml
50/150mg
750mg
500mg
250mg
100mg
250mg
500mg
750mg
25mg
50mg
100mg
150mg
200mg
50mg/5
150mg
10mg/ml
150/300mg
150/300/300mg
200mg
100mg

Tablet
Oral solution
Cream
Oral solution
Capsule
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Solution
Tablet
Oral Solution
Tablet
Tablet
Tablet
Capsule

GlaxoSmithKline
GlaxoSmithKline
Cipla
GlaxoSmithKline
GlaxoSmithKline
Laboratorios Cinfa
Laboratorios Cinfa
Laboratorios Cinfa.
Cipla
Cipla
Cipla
Cipla
Bristol-Myers Squibb
Bristol-Myers Squibb
Bristol-Myers Squibb
Bristol-Myers Squibb
Bristol-Myers Squibb
Cipla
GlaxoSmithKline
GlaxoSmithKline
GlaxoSmithKline
GlaxoSmithKline
Cipla
Abbott Laboratories

Ritonavir
Ritonavir/Llopinavir
Ritonavir+lopinavir
Saquinavir
Stavudine
Stavudine
Stavudine
Stavudine
Sulfadiazine
Vinblastine sulfate
Vincristine sulfate
Zalcitabine

80mg/ml
33,3mg + 133,3
20mg + 80mg/ml
200 mg
15mg
20mg
30mg
40mg
500mg
10mg/10ml
1mg/ml
0.375 mg

Oral solution
Capsule
Oral solution
Soft capsule
Capsule
Capsule
Capsule
Capsule
Tablet
Injection
Injection
Tablet

Abbott Laboratories
Abbott Laboratories
Abbott Laboratories
Roche
Bristol-Myers Squibb
Bristol-Myers Squibb
Bristol-Myers Squibb
Bristol-Myers Squibb
Doms Recordati
Cipla
Cipla
Roche

Zalcitabine
Zidovudine

0.75 mg
100mg

Tablet
Capsule

Roche
Combino Pharm

Zidovudine
Zidovudine
Zidovudine

50mg/5
10mg/ml
50mg/5ml

Solution
Cipla
Infusion
GlaxoSmithKline
Oral solution GlaxoSmithKline

GSK, Ware, Hertfordshire, UK


GSK, Speke, Liverpool, UK
Patalganga, India
GSK, Speke, Liverpool, UK
RP Scherer, Beinheim, France
Navara, Spain
Navara, Spain
Navara, Spain
Kurkumbh, India
Kurkumbh, India
Kurkumbh, India
Kurkumbh, India
Meymac, France
Meymac, France
Meymac, France
Meymac, France
Meymac, France
Vikhroli, India
GSK, Ware, Hertfordshire, UK
GSK, Speke, Liverpool, UK
GSK, Ware, Hertfordshire, UK
GSK, Ware, Hertfordshire
Vikhroli, India
RP Scherer, Florida, US
Beinheim, France
Queensborough, Kent, UK
RP Scherer, Florida, US
Queensborough, Kent, UK
R.P.Scherer, Baden, Germany
Meymac, France
Meymac, France
Meymac, France
Meymac, France
Parc Mecatronic, France
Kurkumbh, India
Kurkumbh, India
Roche, New Jersey, US
Basle, Switzerland
Roche , New Jersey, US
Finaf 92, Gorgs y Llad,
Barabara del Valles or Medea,
Santa Carolina, Barcelona
Vikhroli, India
Catalytica, Greenville, US
Wellcome, Dartford, Kent, UK

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15

Asian Medical Industry News


Issue No. 10, April 1st, 2002

India
market its Midazolam Hydrochloride syrup. The company says the product has been deemed equivalent to
Roches Versed Syrup and will be launched before May
15th. Midazolam Syrup is indicated for use in paediatric patients for sedation, anxiolysis and amnesia under
a monitored environment.

Lack of patent law a hindrance to


foreign investment, says US
India needs to introduce a proper product patent law
consistent with WTO regulations if it wants to encourage serious levels of foreign investment, according to
a representative of the US. Speaking at a seminar on
March 15th, the US Ambassador to India, RD
Blackwill, noted that delays in passing legislation on
patents are to the detriment of scientists involved in
original research

Knoll profits on the up


Knoll Pharmaceuticals has posted a net profit of
Rs 141 million (US$2.9 million) for the quarter ended
February 28th, 2002 compared to Rs 92 million
(US$1.9 million) in the quarter ended March 31st, 2001.
Income increased from Rs 838 million (US$17.2 million) to Rs 850 million (US$17.4 million). The company has changed its accounting year end from December 31st to November 30th, so the two quarters
are not directly comparable.

Pilfered IP
Blackwill pointed out that Indian intellectual capital
produced by scientists, research institutes and leading
pharmaceutical and biotechnology firms remains stifled, underutilized or could be pilfered. He said the
US would like to assist India in processing the estimated 30,000 pending patent applications.

Dr Reddys launches Bicalutamide


Dr Reddys Laboratories has launched Tabi
(Bicalutamide ) for the treatment of advanced prostate cancer. The company is the first to launch the
drug in India. The product will be available as a 50mg
tablet. Dr Reddys says that with a global market share
of over 50%, Bicalutamide is the worlds leading antiandrogen therapy for the treatment of advanced prostate cancer.

He also hoped that increased spending on research


will result in a boost to the pace of study and innovation in Indias public-sector laboratories. He urged technology experts to identify and evaluate inventions in
the laboratory and file a timely patent.

Ministry writes off HAL interest

INDIA IN BRIEF

Indias Ministry of Chemicals and Fertilizers has decided to write off all of the interest dues which have
accumulated on Hindustan Antibiotics (HAL) since the
organization was set up with a government loan in 1972.
The decision, at a cost of Rs 550 million (US$11.3 million), allows the Ministry to push ahead with its plans
to invite private bidders for the ailing company (see
Issue 3, p 13).

Ranbaxy to boost Asian research


Ranbaxy Laboratories is to set up 11 new research
centers across India, doubling its current research base,
and move into China for the first time. The expansion
aims to increase the number of facilities available for
clinical trials in the worlds two most-populous countries. It can be also seen as an attempt to establish
itself in China as that market opens up. Rival Dr
Reddys is already reported to be in talks with the Export Import Bank of India about financing for a Chinese expansion (see Issue 4, p 8).

Sun Pharma changes research plans


Sun Pharmaceuticals has dropped plans to build a research and development center in Chennai, citing
logistical and convenience reasons. The company
will, however, spend Rs 400 million (US$8.2 million)
on new chemical entities and a Novel Drug Delivery
Systems research campus in Baroda. The research
will focus on three therapeutic areas but Sun declined
to identify what these would be.

Ranbaxys Midazolam approved in US


Ranbaxy Pharmaceutical, the US subsidiary of the
Ranbaxy Laboratories, has received FDA approval to
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16

Asian Medical Industry News


Issue No. 10, April 1st, 2002

India/Pakistan
Health Ministry wants animal experiments

Pakistan approves 3% price rise for


drug and suture importers

The Health Ministry says that current restrictions on


the use of animals in laboratories has brought medical
research in India to a standstill, and intends to push for
a more liberal policy. Health minister CPO Thakur says
he has already mentioned it to the Prime Minister and
will soon bring it up formally. The minister for animal
welfare, Maneka Gandhi, says there is no intention to
prevent valid medical experiments; however, scientists
say that obtaining the necessary permits is so cumbersome it is barely worthwhile.

The government has agreed to allow importers and


producer of pharmaceuticals and sutures a 3% increase
on the prices of 821 medicines used for treatment of
major ailments. The increase comes in addition to the
15% sales tax which was added to drugs last month.
Manufacturers and importers are required to infiorm
the Ministry of Health of their retail prices.

India to bar HIV sufferers?

AT A GLANCE
Drugs and supplies covered by 3% price increase

India is to reported to be considering banning foreign


sufferers of HIV/AIDS from entry to the country. The
Hong Kong-based South China Morning Post quotes
Indian Health and Family Welfare Minister CP Thakur
as saying that visitors will have to produce medical
records stating that they are not infected with the virus. If they are HIV-positive, they will not be allowed
to travel in the country. Testing is being justified on the
grounds that contacts with foreigners are responsible
for the sharp rise in HIV cases in India. The ministry
can pass the law without parliamentary approval.

General anaesthetics (five injections); anti-diabetics, insulin (38 tablets, injections and syrups); antibiotics and
steroid combinations, anti-infective agents, non-steroidal
anti-allergies/decongestants, miotics and anti-glaucoma
drugs (58 tablets, injections and syrups); anti-bacterial
(213 capsules, tablets, injections and syrups); analgesics,
anti-pyretic, NSAIDs and anti-gouts (38 tablets, injections
and capsules); anti-allergics (17 tablets, injections and
syrups); anti-epileptics and anti-convulsants (19 tablets,
injections and syrups); anti-infectives, amoebicides and
anti-diarrhoeals (11 tablets, injections and syrups); antituberculosis (13 capsules, tablets, injections and syrups);
anti-virals (2 tablets and suspensions); anti-fungal and
other dermatological (20 tablets, injections and syrups);
anti-malarials (11 tablets, injections and syrups); anti-migraine; anti-helmintics (7 tablets, injections and syrups);
anti-Parkinson (7 tablets, injections and syrups); blood
drugs affecting the anti-coagulants and antagonists (11
tablets, injections and syrups); cardiovasculars (78 capsules, tablets, injections and syrups); diuretics (12 tablets, injections and syrups); gastrointestinals (24 tablets,
injections and syrups); hormones and other endocrine
drugs (13 tablets, injections and syrups); muscle relaxants (14 tablets, injections and syrups); psychotropics
(tablets, injections and syrups); drugs acting on respiratory tract (16 tablets, injections and syrups); anti-spasm
and anti-cholinergics (8 tablets, injections and syrups);
anti-emetics and anti-nauseates (15 tablets, injections and
syrups); urological preparations (2 tablets); dextrose infusion, electrolytes and dialysates dextrose (37 tablets,
injections and syrups); anti-neoplastic and
immunosuppresives (145 tablets, injections and syrups);
antidotes (12 tablets, injections and syrups); cerebery/
periphery disorders (8 tablets, injections and syrups);
tropical antibiotics; ligatures and sutures (88 items).

AT A GLANCE
HIV was first reported in India in the late 1980s, but
is now estimated to have four million sufferers.

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17

Asian Medical Industry News


Issue No. 10, April 1st, 2002

India
Share price movements ranked by performance since Jan 1st
Company

Stock
Code

Exchange

Reckitt Benckiser
Torrent Pharmaceutical
Bal Pharma
Bayer India
Astra-IDL
Abbott Laboratories
Knoll
Lupin Laboratories
Ranbaxy Laboratories
JB Chemicals
Nicholas Piramal
Dr Reddys Laboratories
Wyeth Lederle
GlaxoSmithkline
Novartis
Sun Pharmaceuticals
Duphar-Interfran
Wockhardt
Procter & Gamble
E Merck
Unichem Labs
Burroughs Wellcome
FDC
Shasun Chemicals
Bayer Diagnostics
Orchid Chemical
Pfizer
Zydus-Cadila
Jagsonpal Pharma
Aventis Pharma
Aurobindo Pharma
Cipla
Morepen Laboratories
Ajanta Pharm

RCKT
TORP
BALP
BAYE
ASTR
ABBT
KNOL
LUPN
RANB
JBCH
NICH
REDY
WLED
GLAX
NOIN
SUN
DUPH
WCKH
PROC
EMER
UNLB
BURR
FDC
SHAS
BDIL
ORCD
PFIZ
CADI
JGSN
AVPH
ARBN
CIPL
MORL
AJPH

Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay
Bombay

Price (Rs)
Price change since
Mar 29th Issue 9
1/1/02 1/1/01
241
215
17
1,348
364
207
307
117
878
154
271
1,098
255
340
246
670
135
557
503
303
200
183
200
67
227
69
450
128
127
405
215
1,018
53
47

-0.6%
-7.3%
24.8%
-3.6%
0.3%
-2.1%
1.5%
-3.7%
-1.5%
3.0%
-0.3%
2.9%
-0.0%
-4.4%
2.2%
2.7%
5.4%
5.6%
-0.2%
2.7%
-0.2%
-3.4%
-2.9%
-1.5%
-2.4%
1.2%
0.9%
2.6%
-0.7%
18.1%
-7.2%
0.3%
-6.9%
0.0%

70.3%
57.0%
55.5%
54.1%
48.4%
47.6%
29.3%
27.6%
27.3%
27.3%
20.9%
18.9%
18.5%
18.3%
17.3%
16.9%
16.3%
15.0%
10.5%
9.7%
8.7%
6.8%
2.6%
2.5%
2.4%
2.0%
1.1%
-0.3%
-2.7%
-2.7%
-5.9%
-10.0%
-12.3%
-21.0%

-8.1%
22.9%
14.0%
127.3%
-7.3%
-22.9%
-12.2%
-46.8%
30.7%
23.2%
-24.5%
74.5%
-20.4%
-25.2%
-53.0%
24.5%
-60.4%
30.7%
-27.7%
-30.1%
5.3%
-37.4%
-7.0%
-14.9%
-3.3%
-33.3%
-26.2%
-19.2%
-78.5%
-13.3%
-56.8%
-26.8%
-56.2%
-54.9%

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18

Asian Medical Industry News


Issue No. 10, April 1st, 2002