Archives February 2009

Novo plots $400M Chinese plant

In another confirmation of pharma’s eastward gaze, Novo Nordisk is plowing $400 million into a new factory for diabetes treatments. The plant will produce insulin-based meds for China and other Asian markets. It will be Novo Nordisk’s biggest-ever investment outside its home country of Denmark.

As you know, Big Pharma has been pinning new hopes on emerging markets like those in Asia. Growth in the U.S. is slowing, of course, so drugmakers are looking to the developing world as one source of new revenues. GlaxoSmithKline is looking to beef up its operations in China and India, for instance, and Merck’s Indian subsidiary is staffing up in anticipation of a series of new product launches there.

Though China’s economic engine looks to be shifting to a lower gear as well, its healthcare markets are still underserved. As Lars Rebien Sorensen, Novo’s CEO, told the Financial Times, “For over a decade we have realized that the diabetes market in China would grow quickly and nothing in the recent financial crisis has really changed that.”

Sanofi to expand in China

France’s Sanofi-Aventis announced it will expand its research and development functionality in Shanghai, China. In a new partnership with the Shanghai Institutes for Biological Sciences, the company will work on drug discovery in the areas of cancer, diabetes and neurological disease, and will put a new biometrics facility in Beijing. The facility in Shanghai has been there since June of 2005 and functions in the full spectrum of drug discovery.

The new facility in Beijing, which it hopes will be in full operation by year’s end, will be more specialized, handling specifically data management, study design and statistical analysis.

“A comprehensive development program for vaccines is already on-going in China and we are looking forward to its expansion in the near future,” said Dr. Michel DeWilde, Senior Vice President, Sanofi Pasteur R&D.

Pharma’s new favorite outsourcing spot: China

Quality-control fears notwithstanding, China has knocked India off the catbird seat as pharma’s favorite spot for outsourcing. According to a new report from PriceWaterhouse Coopers, China beats every other Asian country as an investment and contracting destination, followed by India, Korea and Taiwan. The countries all were evaluated by cost, risk, and market opportunities.

And it’s not just low-cost production that’s luring pharma to Asia, either. The report found that the region is growing in stature as a source for innovation and discovery. Plus, local markets are burgeoning, giving pharma the potential for lots of new emerging-market sales.

The various countries have different strengths, with China and India the primary drivers of pharma growth in the region. Singapore, on the other hand, is considered more of an R&D specialist, while Korea and Taiwan are emerging as competitors for pharma investment and business. What’s contributing the the region’s magnetism? Greater attention to intellectual property protections, for one. Cheaper clinical trials, of course. And an explosion of growth in certified contract manufacturers. In India, for example, there are more than 100 FDA-approved pharma plants, the largest number in any country outside the U.S.

Industry Voices: Creating a center of excellence in China

Stephanie Wells is the Senior Vice President of the U.S.-based CRO Charles Rivers Laboratories.

With its impressive pool of native scientific talent, large population with unique therapeutic needs, rapidly growing economy, and rising interest in Western products and services, China is emerging as a powerhouse in the life sciences industry. However, in the past year a series of product contamination incidents have beset China’s manufacturing industry, emphasizing how vital it is to establish Good Laboratory Practice (GLP) so that China’s potential as a quality pharmaceutical producer can be fully realized. As China continues to evolve as a center of R&D innovation, providing GLP-compliant preclinical services is critical to fostering this culture, as well as to helping academia, scientific societies, and biopharmaceutical organizations accelerate their drug development programs.

To accomplish this goal, it is critical to make a strategic investment in local resources and staff to support these drug development programs. A critical component of this investment is the transfer of expertise and western lessons learned to Chinese talent, including high standards of research, safety, humane care, and good laboratory practices. The goal is not to have a Chinese facility that is staffed and operated from the west, but to create an autonomous operation that meets the same regulatory and quality standards as its Western counterparts.

Creating a Culture of Compliance

The most important aspect of successfully replicating GLP procedures in a new location is to rigorously train the people responsible for carrying out the procedures. It is at this fundamental level that quality can be most easily compromised. In other words, personnel can make or break a GLP facility.

To guarantee the quality of the knowledge and actions of personnel, the staff needs to be well trained. This is accomplished by either training them at other GLP-compliant facilities before placement at a China facility or transferring key management positions from those GLP-compliant facilities to China to train and oversee staff on-site. Ideally, a combination of these plans should be implemented to achieve effective training.

After establishing a base of highly-trained staff members, the GLP standard must be maintained. From the start, the goal of all training should be to create and sustain a culture of compliance, where compliance is not a goal to be reached daily, but the normal state of affairs in which any deviation is immediately evident and quickly corrected. This is maintained through orientation and refresher training, as well as quality assurance initiatives.

An Assurance of Quality

When setting up a facility in a different country, the amount of regulatory complexity that is involved increases significantly. Achieving these new quality standards in addition to meeting domestic GLP standards while in a foreign environment takes both prior planning and continual oversight.

Much like the aforementioned training, which in itself is an important component for quality assurance, engagement and importation of key quality assurance personnel is essential to the success of any such offshoring venture, and not just after the facility has opened. Quality assurance starts in the planning stages, with detailed validation plans drawn up by experts in the field. Validation plans should include facility construction, standard operating procedure implementation, and staff training. Throughout the planning stage and all the way through to implementation, it is vital to involve international experts in addition to imported quality assurance personnel, in conjunction with local experts in Chinese regulations and processes.

Finally, a Quality Assurance unit should be instituted and empowered to monitor compliance once the site is functioning. Quality audits should be conducted frequently, and continued process improvements should be developed and implemented wherever possible to more efficiently meet GLP standards.

An Integration of Local Resources

Although the above two steps involve the importation of a considerable amount of skill and resources, it is also essential that local resources are engaged and incorporated. In fact, eventually a company should come to rely on the resources available locally.

The main reason for importing resources at first is one of trust. The suppliers and vendors that a company normally relies on for support have already been vetted and have proven over time to be dependable. However, for fiscal and geographical reasons, that same pipeline of resources might be impractical or impossible to use on the opposite side of the world. As a result, relying on domestic suppliers as a long-term strategy is untenable.

Fortunately, China has a great deal to offer with respect to local expertise. In addition to knowledge of local regulations and the prodigious scientific talent of the country, there are plenty of high-quality suppliers and vendors available. However, these local resources need to be subjected to the same quality control scrutiny to which the domestic pipeline is subjected. In fact, by importing resources from domestic sources at first, a company can buy itself the time it needs to properly examine and establish local China suppliers and vendors for GLP-compliance.

Conclusion

To achieve a culture of compliance, effective quality assurance procedures, and the successful integration of dependable local resources, it takes an immense amount of planning before the first brick is laid in a new China venture. To reiterate, the goal is to create a preclinical center of excellence in China and an offshore partner for multinational and local biopharmaceutical companies. By definition, such a goal is best achieved by leveraging domestic experience and importation in the early stages to ensure quality standards are established and replicated. If the appropriate blend of domestic expertise, western compliance processes, and oversight are linked with proper utilization of local resources, an efficient GLP-compliant facility can be established and maintained. Once created and maintained, this will go a long way toward delivering the enormous potential that China offers in helping the pharmaceutical and biotechnology industries enhance development of more effective therapies, both in China and the rest of the world. – Stephanie Wells

Brokers post earnings drop and cut salaries

Latest 2008 figures from 50 stock brokerage firms showed an average 68.91 percent fall in profit from 2007 and a 11.99 percent cut in annual executive pay.

Industry analysts said the pay cut in 2008 would have been much deeper if it had not been for the deferred payment of the 2007 bonus.

Of the 50 brokerage firms, five said their average executive compensation was above one billion yuan ($146 million), with Guotai Jun’an Securities Co topping the list with 3.07-billion-yuan total staff payout, up 96.8 percent from a year before. The other four were Guangfa Securities, China Merchants Securities, CITIC China Securities and Guoxin Securities.

The total staff payout of the five brokerage firms totaled 9.11 billion yuan, exceeding the combined 7.4 billion yuan of the other 45 companies.

Roche Seeks Biotech Licensing, Takeovers in China

Roche Holding AG, Switzerland’s biggest drugmaker, may make its first acquisition of a Chinese biotechnology company or buy rights to a compound developed in the country later this year.

Two executives from Roche’s drug-partnering unit based in China are scouting for opportunities, including licensing experimental medicines, Lee Babiss, the head of Global Pharma Research at the Basel, Switzerland-based company, said in a Feb. 4 interview.

“They’re looking not only for those types of assets but also drug formulation because know-how is really very, very deep in China,” Babiss said. “We are also narrowing down a few opportunities that might involve mergers and acquisitions or simple in-licensing.”

Chief Executive Officer Severin Schwan said earlier this week that the drugmaker is “constantly” looking for acquisition targets in addition to the planned $42.1 billion purchase of partner Genentech Inc. Roche, which reported a drop in second-half net income on Feb. 4 and said earnings may not grow this year, went hostile in its bid for full control of Genentech a week ago after failing to secure a negotiated deal.

Bigger Slice

Pharmaceutical companies are seeking a bigger slice of sales in emerging markets such as China as revenue in mature markets in the U.S. and Europe sags. The deepening global recession is spurring industry consolidation as governments increasingly favor generics and cheaper medicines as a way to stem the rising cost of health care.

Roche spent about 100 million Swiss francs ($85.4 million) in research and development in China from 2004 to early 2008, focusing on cancer, arthritis and anemia. The Swiss drugmaker, which opened its first subsidiary in the country more than 80 years ago, operates four sites in Shanghai and Hong Kong with a total of 2,000 staff.

Roche’s hostile bid for South San Francisco, California- based Genentech is 2.8 percent lower than the price it initially offered in July. It follows a $68 billion offer by Pfizer Inc. for U.S. peer Wyeth last month.

Genentech, whose Avastin and Herceptin cancer drugs have made Roche the world’s biggest seller of anti-tumor medicines, has helped the Swiss drugmaker grow faster than its peers and left it less exposed to patent expirations than Basel neighbor Novartis AG or Pfizer, which is the world’s largest drugmaker.

Harvard Graduates

Roche is conducting about six research projects in China and is working with a local partner on an experimental cancer treatment. The collaboration isn’t a “traditional” licensing relationship, Babiss said, without providing details.

The Swiss drugmaker is also looking to hire “excellent” scientists in China and is transferring more chemistry-related research to partners there, Babiss said.

“Most of the people that we’ve hired that have come back were trained at Harvard and MIT and these are brilliant people,” Babiss said, referring to Harvard University and the Massachusetts Institute of Technology. “At the beginning it was chemists, now the biologists are coming over. More of them are going to come back to China and shape that environment.”

Germany’s Bayer AG, Sanofi-Aventis SA of France, and London-based AstraZeneca Plc are among European rivals also expanding their presence in China. Economic growth in China and India is creating pharmaceutical markets that are growing twice as fast as those of developed nations, PricewaterhouseCoopers LLC said in a report last year.

Science Spin-Offs

GlaxoSmithKline Plc, the world’s second-largest drugmaker, in 2007 earmarked $40 million for a research and development facility in Shanghai. Novartis, the same year, decided to open a $100-million research center in the same city.

Roche may also create spin-offs in the country by helping scientists to set up their own companies with compounds licensed from the Swiss drugmaker, he said. Roche hasn’t lost many scientists in China, though “eventually in that type of dynamic environment people will leave,” he said.

“The question is do we want to lose the talent or do we want to have some hook back to that talent and I’d rather do the latter,” Babiss said. “If someone’s going to leave, I’d say well alright you want to leave, you’re entrepreneurial – how can we help you leave?”

Babiss is considering hiring “a few people” with the understanding that in two or three years they would leave and form a startup.

“This is all about testing new ways of doing drug discovery,” Babiss said. “This won’t work in New York or the U.S. or here Basel, but it may work in China.”

Bayer says to build 100 mln euro R&D centre in China

BEIJING, Feb 12 (Reuters) – A unit of Bayer AG (BAYG.DE) will spend about 100 million euros ($129 million) over five years to build a research and development centre in Beijing, the company said on Thursday.

Bayer Schering Pharma, a division of Bayer HealthCare, will build the centre, becoming only the third country besides Germany and the U.S. to host a global R&D centre for Bayer Schering, it said in a statement.

China is the third largest market worldwide for the Bayer group. The new centre aims to include Asian patients earlier in global drug development, it said.

“Our goal is to build a world class organization here in Beijing that will lead drug development not only for China but also for other Asian countries,” said Kemal Malik, a Bayer Schering Pharma board member, in the statement.

China said last month it planned to spend about $124 billion on health care over the next three years, aiming to improve basic medical insurance, expand local-level clinics, improve the public health system and initiate pilot public hospital programmes.

Foreign health-care firms are seeking to fill a huge gap in China’s health care sector that leaves hundreds of millions of people with little or no coverage.

GlaxoSmithKline Plc (GSK.L), the world’s second-largest drug maker, said last year it planned to double its R&D staff in China to 350 people in the next few years, as China could become the world’s fifth-biggest pharmaceuticals market by 2010.

Bayer says to build 100 mln euro R&D centre in China

BEIJING, Feb 12 (Reuters) – A unit of Bayer AG (BAYG.DE) will spend about 100 million euros ($129 million) over five years to build a research and development centre in Beijing, the company said on Thursday.

Bayer Schering Pharma, a division of Bayer HealthCare, will build the centre, becoming only the third country besides Germany and the U.S. to host a global R&D centre for Bayer Schering, it said in a statement.

China is the third largest market worldwide for the Bayer group. The new centre aims to include Asian patients earlier in global drug development, it said.

“Our goal is to build a world class organization here in Beijing that will lead drug development not only for China but also for other Asian countries,” said Kemal Malik, a Bayer Schering Pharma board member, in the statement.

China said last month it planned to spend about $124 billion on health care over the next three years, aiming to improve basic medical insurance, expand local-level clinics, improve the public health system and initiate pilot public hospital programmes.

Foreign health-care firms are seeking to fill a huge gap in China’s health care sector that leaves hundreds of millions of people with little or no coverage.

GlaxoSmithKline Plc (GSK.L), the world’s second-largest drug maker, said last year it planned to double its R&D staff in China to 350 people in the next few years, as China could become the world’s fifth-biggest pharmaceuticals market by 2010.

Supplier Quality Engineer (SQE) (eng094tj)

Job Title: Supplier Quality Engineer (SQE)
Report to: President of Asian Operations
Location: China-Tianjin

Our client is Fortune 500 American enterprise with a history of outstanding performance, is the value leader in the portable heating and cooling market today.

They provide world class quality, innovative products and services; have various kinds of products, including portable high capacity air circulators to a full range of forced air and portable radiant heaters.

Now, with the development in APAC, especially in China, they are looking for talents to join in them.

Job Summary:

The Supplier Quality Engineer (SQE) will report directly to the President of Asian Operations and interface with the US VP of Operations while supporting the overall Quality Management Systems at contracted manufacturing facilities. Accountable for ensuring Acceptable Quality Levels by the regulation of raw materials, assemblies, components, and finished goods through routine inspection and audit of assembly and manufacturing processes. Analyze and review quality reports to verify compliance, monitor performance and detect potential problems. Conduct Root Cause Analysis and recommend Corrective Action Plans to resolve deficiencies.

Verify that products comply with technical and regulatory specifications and meet customer requirements in a systematic, reliable method. Develop plans for improving and stabilizing production and related processes to minimize practices that cause defects. Monitor and report supplier performance to senior management. Collaborate with plant management to ensure continuous improvement initiatives are applied. Document and maintain quality process audit reports.

Responsibilities:
1. Monitor and report daily production levels and associated failure rates to the President of Asian Operations with copy to US VP of Operations
2. Track production levels to established shipping plan and report variances with recommended corrective action plan
3. Verify adherence to Incoming Quality Control procedures, Inline QC processes, QA testing and final inspection
4. Conduct random sampling inspections and evaluate quality system effectiveness using AQL sampling methodology
5. Resolve material issue conflicts and recommend supplier corrective actions
6. Validate component and BOM specifications
7. Undertake corrective and preventative action programs, from initiation to resolution of items.
8. Oversee production record keeping procedures, audit random sampling to ensure compliance with safety and regulatory standards
9. Collect and analyze data to track defective rates
10. Audit Supply Chain management to ensure materials compliance with RoHS/WEEE requirements. Work with Engineering and Manufacturing to ensure that all product documentation, marking, labeling, and packaging meet certification requirements including CSA, CE, GOST, UL, and RoHS/WEEE

Requirements:
1. Must have 3+ years of quality engineering work experience
2. Knowledge of CSA, CE, GOST, RoHS/WEEE directives preferable
3. Ability to read, interprets, and understands technical and non-technical documents including but not limited to contracts, product drawings, and product specifications. Must demonstrate attention to detail
4. Able to speak and write Mandarin and English. Ability to communicate in Korean helpful
5. Able to interface with technical and non-technical personnel such as engineers, manufacturing staff, vendors, certification consultants, testing lab personnel, and management
6. Must be free to travel to manufacturing facilities, supplier factories and offices, and management locations in China, Korea and the US
7. Must be proficient in Microsoft Office, statistical analysis software, manufacturing software applications

Education:
1. Minimum BS in Engineering
2. Preferred BS in Mechanical or Electrical Engineering
* Please send us your complete resume (in Chinese and in English) to: ‘topjob_eng094tj@dacare.com'(Please replace “#” with “@”)
* In the email subject please include the position name and job #

Resume helps migrants too

More rural migrant workers should learn how to use resumes to enhance their job-seeking missions, says an article in Dazhong Daily. The following is an excerpt:

At a recent job fair in Wuhan, Yu Bo, a 41-year-old rural migrant worker, used a carefully designed resume, rarely used by his peers, to win the hearts of recruiters.

Yu designed his resume as fashionably as college graduates usually do – he put into a file holder all the sheets that describe his work experience, skills and talents, achievements, and various types of certificates and diplomas. A secondary technical school graduate as Yu is, he left a deep impression on recruiters.

Usually, resumes seem to be the exclusive tool for college graduates to find jobs and few migrants have ever used resumes to boost their chances of being hired. Yu’s innovative action has set a good example for his peers.

Rural migrant workers have long been the disadvantaged group in the job market – they don’t dress up for job fairs and don’t expect too much about working conditions and payment; they lack confidence and have few skills to sell themselves to the market.

Today’s rural migrant workers are no longer only working with their muscles. They should rely more on their brains. Resumes are an effective tool for them to show off their talents and past achievements to their would-be employers