Johnson & Johnson's Janssen unit and Merck KGaA are joining the parade of companies rolling out new manufacturing facilities in China, a market that could become the world's largest in a decade.
Indian officials must have been glad to hear from GlaxoSmithKline CEO Andrew Witty. During a trip to the country, Witty told Indian media that the country's policies on pricing and patents are understandable, even reasonable, though they may pain the pharma industry.
Catalent's new clinical supply operation in Shanghai is now open for business, giving the company a 31,000-square-foot operation it said offers broader capabilities than anything else in China.
GlaxoSmithKline will "proactively" build a new plant in India as it bets on growing business there to propel earnings growth. The plant will be another facility in which it uses continuous processing and adds to the £100 million the company has invested in manufacturing capcity in India in the last decade.
Nobody making or selling drugs in India was happy when the government this year expanded price caps to nearly 350 drugs, but there seemed little for anyone to do.
The investigation by Chinese authorities into of a host of drugmakers for bribery has put a chill on business there, but not frozen them in their tracks. Plans announced in the last two days by Johnson & Johnson and Merck KGaA to build new plants in China shows the market is too vast and too important to allow a little uncertainty to put plans on ice.
GlaxoSmithKline expects increasing amounts of business from emerging markets, and so, to get ahead of the curve in India, the company is planning to build a new £85 million ($136.5 million) plant there, CEO Andrew Witty announced while in the country for a conference.
Sandoz, the generic drug division of Novartis, has pulled two batches of tuberculosis drugs from the market in India after some packages were found to have improper doses in strips of medications.
WuXi PharmaTech, China's largest CRO, banked another strong revenue quarter thanks to escalating demand for clinical trials in its home country, and now the company is raising its annual profit expectations by about 7.6%.
GlaxoSmithKline bigwigs can breathe a sigh of relief, if a tentative one. The company probably won't face corruption charges in China, Reuters sources say. But Glaxo's local executives probably will.