May 07, 2019 (China Knowledge) - Sun Pharmaceutical Industries, one of India’s largest pharmaceutical companies is said to be looking for a partner in China to help it break into the world’s second largest drug market, viewing China as an opportunity for it to create a significant new revenue stream.
The company’s move to focus more on China comes as the Chinese government rolls out a new multi-city bulk drug procurement program that aims to drive down drug prices in the country, providing an opening for it to break into the market.
According to the company’s founder Shanghvi, Sun Pharmaceuticals will begin scaling up with China business in six to nine months before starting to contribute significantly to the company’s total sales.
As China continues importing more drugs, adding more to its insurance coverage and speeding up approvals of US-approved drugs, the Chinese drug market is now a core focus for Indian generics.
Given Sun Pharmaceutical’s large portfolio of US-approved products, the company believes that this would help it to ramp up its Chinese business with minimal investment and reap benefits from the growing market.
Despite this, the company still faces challenges in ramp-up and profitability in the country as distribution is an important aspect in China which will require the company to find a local partner and incur higher costs.
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