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.
PricewaterhouseCoopers reports that Indian drug exports to the U.S. rose 32% in 2012, although it warns that quality failings could stymie future growth.
Brazil-based Bio-Manguinhos is working with the Bill & Melinda Gates Foundation to produce a combined measles and rubella vaccine for developing countries in Africa and other regions.
In its joint venture, Glaxo will front $1.8 million for work on the thermostability of vaccines. GSK will set out to make adjuvants--used to boost the effectiveness of vaccines--more heat stable. The project fits within the broad scope of work attempting to break the "cold chain" supply process that requires vaccines to remain refrigerated--a big challenge for developing countries.