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No Winner In Nanjing Medical And Xian-Janssen Breakup

This article was originally published in PharmAsia News

Executive Summary

After breaking up their collaboration in 2007, Nanjing Medical and Xian-Janssen have made no progress in resuming their business negotiation. Xian-Janssen, the biggest OTC producer in China, has found another channel partner in Nanjing; Nanjing Medical on its part has taken up distributorship of alternative products. The standoff has not benefited either party. Xian-Janssen's key drug Motilium sees lower sales, while Nanjing Medical's newly released 2007 annual report shows that its pharmaceutical distribution profit growth only increased 0.21 percentage points compared to the previous year. Industry observers note that to achieve a win-win situation, pharmaceutical producers should give reasonable profit margins to distributors, which in turn should value the manufacturers' brand names. (Click here for more - Chinese Language)

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