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Japan's Astellas Unveils Strategies For China

This article was originally published in PharmAsia News

Executive Summary

Astellas, Japan's second largest pharmaceutical manufacturer, is convinced that China's healthcare reforms will provide great opportunities for all pharmaceutical producers. Even though the Chinese market is now dominated by European and American companies, Astellas China revealed it will increase local new drug R&D and expand its distribution networks. Although slated reforms encourage pharmaceutical firms to focus on rural areas and low-profit drugs, Astellas will focus on patent and prescription drugs because the company believes that rural residents will still choose high quality drugs to reduce total medical care expenses. In addition, the company plans to acquire local pharmaceutical firms, but will proceed cautiously with this long-term strategy. Astellas has posted 20 percent annual growth in China over the past two years, with the market contributing to about 47 percent of its Asian revenue in the first half of 2009. (Click here for more - Chinese Language)

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