Healthcare Archives - The Asia Career Times
OSAKA ETakeda Pharmaceutical Company Limited (“Takeda E TSE: 4502) announced strategic measures to better align its global workforce and consolidate site operations in order to integrate legacy Nycomed operations, strengthen its presence in more than 70 countries, adapt to changing market conditions and maintain a focus on growth through innovation and culture, as outlined in its 2011-2013 Mid-Range Plan (MRP).
SINGAPORE– Invida Holdings Private Limited, the leading specialty biopharmaceutical company focused on the commercialization of healthcare brands throughout Asia Pacific, announced the acquisition of a brand portfolio from India-based Shalaks Pharmaceuticals Pvt Ltd (Shalaks). No financial terms of the acquisition were disclosed. Upon acquisition of the product portfolio from Shalaks, Invida will market the products under the Invida brand.
“This is an important strategic move for Invida, expanding our presence in the rapidly growing Indian pharmaceutical market E
Invida will focus its sales and marketing efforts on high volume dermatology brands in key growth segments, including topical anti-acne, anti-fungal, sun screens, anti-scar, anti-pigmentation and moisturizers. Products in these target markets are expected to register high rates of growth in the coming years, driven by rising disposable incomes, improved access and increased public health awareness. The primary care portfolio, comprising seven brands, will establish Invida in key market segments that are poised for growth. The products in both portfolios have well-recognized clinical benefit and favorable safety profiles, and have been marketed by Shalaks for several years.
“This is an important strategic move for Invida, expanding our presence in the rapidly growing Indian pharmaceutical market, Esaid Chief Executive Officer John Graham. “This product portfolio, combined with our recent addition of products from Sinclair Pharmaceuticals, allows us to target the Indian market with both high-end differentiated and main stream dermatology products. The acquisition of Shalaks Eproducts positions Invida among the top dermatology companies in India Ewith the significant potential to increase this position in the coming years. E/p>
Mr. Graham continued, “A combination of Invida’s well-established expertise in brand marketing and sales, and a strategy of focused promotion of brands in high growth areas, will enable us to fully exploit the sales potential of these products on an all-India basis. In addition, the acquisition broadens our product portfolio in key market segments and provides for significant margin improvement. E/p>
The Indian pharmaceutical market is currently valued at USD 10 billion. It is one of the fastest growing pharmaceutical markets in the world and is forecasted to grow in double-digits in medium term. The Indian dermatology market, valued at USD 513 million, grew by 21% in 2010 and represents 25% of the Asia-Pacific dermatology market with a CAGR of 15% (2005-2010)1 and is a significant growth driver of the Indian pharmaceutical market.
Shalaks Pharmaceuticals, started in 1979, is based in New Delhi with India-wide sales network. The company has a focused portfolio in Dermatology and Primary Care. The company has a product line of innovative products in its niche category.
MAPE Advisory Group was Invida’s advisor on this transaction.
The latest findings of the Ma Foi Ranstad Employment Trends Survey – Wave 3 found the sector was the leading employer during the third quarter of 2011, with 60,400 healthcare jobs made available during this period.
In addition to being the highest job generator between July and September, employees working in this industry also noted a salary increase of 16.99 per cent during the third quarter of the year.
Following behind the healthcare sector in terms of job creation was the hospitality industry with 54,400 positions available during this period, while 55,500 roles in information technology were on offer.
The Press Trust of India recently reported Mitul Desai, senior advisor for outreach at the Bureau of South and Central Asian Affairs, suggested more labor migration will take place in the future between the US and India.
PITTSBURGH and HYDERABAD– Mylan Inc. (Nasdaq: MYL), one of the world’s leading generic and specialty pharmaceutical companies, today announced that its India-based subsidiary, Matrix Laboratories Limited, has formally changed its name to Mylan Laboratories Limited. The name change is effective immediately. Mylan announced its intention to rebrand Matrix as a Mylan company earlier this year.
Mylan Inc. Chairman and CEO Robert J. Coury said: “We are pleased to complete the name change from Matrix to a Mylan company and are excited to operate in India under one powerful brand. For the last 50 years, the Mylan name has stood for high quality products, unmatched reliability, outstanding customer service, unrelenting integrity, continuous innovation and serving unmet needs. Mylan’s unwavering commitment to quality and long-standing track record of excellence set us apart from our competitors and will help to ensure our long-term success in India and around the world. We look forward to further educating customers, physicians, pharmacists and patients about the Mylan brand as we continue to grow our existing business and launch in the Indian commercial market in the coming months.”
The name change has been approved by the Registrar of Companies in India. Mylan intends to retain the Matrix name for its institutional ARV franchise.
About Mylan Laboratories Limited
Mylan Laboratories Limited, founded as Matrix Laboratories Limited in 2001 in Hyderabad, India, is one of the world’s largest manufacturers of low cost, high quality active pharmaceutical ingredients (API). Today, the company has a wide range of products, including those in the anti-asthmatic, antibacterial, antifungal, antiretroviral (ARV), cardiovascular, CNS, gastrointestinal and pain management segments. Mylan Laboratories also offers a growing line of finished dosage form products, predominantly generic ARV therapies for the treatment of HIV/AIDS, including both adult and pediatric therapies.
About Mylan Inc.
Mylan Inc., headquartered in Pittsburgh, Pa., ranks among the leading generic and specialty pharmaceutical companies in the world and provides products to customers in more than 150 countries and territories. The company maintains one of the industry’s broadest and highest quality product portfolios supported by a robust product pipeline; operates one of the world’s largest active pharmaceutical ingredient manufacturers; and runs a specialty business focused on respiratory, allergy and psychiatric therapies. For more information about Mylan, please visit www.mylan.com.
CEIBS Hosts 7th Annual China Health Care Industry Forum, Focus on Emerging Markets, Emerging InnovationJune 15, 2011 | admin
Shanghai campus — CEIBS attracted a crowd of 300 health-care experts, academics, and members of the media to the 7th annual China Health Care Industry Forum. Focused on the theme of “Emerging Markets, Emerging Innovation, Ethis year’s forum featured 15 expert speakers during a full day of speeches, presentations and panel discussions.
In his Welcome Address, CEIBS Executive President Zhu Xiaoming commented on the critical importance of China’s health care reform in terms of directly impacting the well-being of China’s population, and promised guests and excellent lineup of speakers offering insight and advice from across a spectrum of perspectives. He thanked sponsors Lilly and Philips for their strong support.
CEIBS Executive President Zhu Xiaoming
CEIBS Vice President and Co-Dean Zhang Weijiong
Taking the stage as the event’s first Keynote Speaker, Professor Cao Rongui, Chairman of Chinese Hospital Association, spoke on “County-level Hospital Reform is the Key to Successful Hospital Reform. EBeginning by stating that 2011 is “crucial Efor public hospital reform, he emphasized that “we should shift our focus from large-scale hospitals in urban cities to county-level hospitals Ebecause these 20,000 hospitals serve the majority of the population. Primary problems facing county-level hospitals today, he said, are: lack of sound management systems and governance mechanism, and insufficient government investment in hospitals, lack of qualified personnel, and low level medical technologies and poor quality of care.
Cao Rongui, Chairman of Chinese Hospital Association
Addressing these issues, he said, would require four steps: 1) recognition that county level reform is strategically important to public hospital reform; 2) tertiary hospitals must better assist county-level hospitals; 3) good practices in county-level hospital reform provide useful lessons for the reform of other hospitals, and 4) improvements to county level hospitals must match their individual circumstances and conditions.
“System Reform and Institutional Innovation” was the topic of the 2nd Keynote Speech, delivered by Wang Dongjin, Chairman of the China Medical Insurance Research Association; Deputy Directory, Subcommittee of Social and Legal Affairs, National Committee of the NPPCC. He stressed that although government expenditure on healthcare has increased from 3% to 6% of GDP, now reaching RMB2 trillion, problems persist in China’s healthcare system. He identified the need to separate the operation and regulation of hospitals, and to create independent cost centers in order to avoid conflict of interest . Also, hospitals should better incentivize excellent doctors in order to reward excellence and to end the current practice of doctors “moonlighting Ein order to earn extra income. Third, he said the industry must standardize the pricing and sale of pharmaceuticals, separating prescription from sales in order to end “over prescription E Patients in China use such treatments as IV drip and antibiotics at a far higher rate than elsewhere worldwide. Finally, laws regulating hospital management must be clarified, eliminating gray zones.
Wang Dongjin, Chairman of the China Medical Insurance Research Association; Deputy Directory, Subcommittee of Social and Legal Affairs, National Committee of the NPPCC
In his address on “Simple Analysis of the Peri-evaluation Hospital Evaluation Theory and its Implications, EProfessor Liu Tingfang, Director of Medical Research Center, Tsinghua University presented a system for hospital management evaluation that has been successfully introduced in Hainan. Prof Liu used a SWOT analysis of the framework as applied in Hainan province, showing that hospitals there improved vastly in nearly all measured aspects after one year of use. Based on this research, he recommended that China expedite the use of third-party evaluation of hospital management in China, then implement the peri-evaluation model and set up a long-term hospital management system. He ended with several inspiring quotes from well known leaders, telling the audience: “Empty talk brings disaster to any country, only rolling up our sleeves will improve our nation Eand “All innovation begins with challenging mediocrity Eand finally: “Our revolution has not ended yet, comrades, we need to strike on. E
Liu Tingfang, Director of Medical Research Center, Tsinghua University
Yu Hui, Senior Associate of the Institute of Industrial Economics, Chinese Academy of Social Sciences (CASS); and President of ChagneCe Thinktank
The morning’s speeches ended with a Session on “Policy and Technology Innovation Emoderated by Professor Yu Hui, Senior Associate of the Institute of Industrial Economics, Chinese Academy of Social Sciences (CASS); and President of ChagneCe Thinktank. As the session’s first speaker, Prof Gu Xin, Prof of Public Policy of School of Government, Peking University, discussed needed healthcare reforms drawing upon his experience as chief writer for Beijing Normal University’s EProposal on China’s Health Reforms, Eas an invited consultant to the Chinese government.
Gu Xin, Prof of Public Policy of School of Government, Peking University
Next, Vice President of Lilly China Dr Julie Xing spoke on “International Experience on Pharmaceutical Market Access Eby identifying the main weaknesses in China’s market access for pharmaceuticals: lack of an independent drug valuation institute, opaque evaluation process, lack of comprehensive standard for innovative drugs, and no “fast track Eapproval for innovative drugs as compared with other countries. As a possible solution, Dr Xing outlined the market access approval process used in France, which is transparent, uses a scientific evaluation system, uses an independent evaluation institute, and supports innovative drugs.
Vice President of Lilly China Dr Julie Xing
Professor Zhu Hengpeng, Director of Micro-economics Department and Public Policy Research Center, Institute of Economics of Chinese Academy of Social Science, next addressed the critical problems facing China’s health care industry. He named “over-prescription of drugs Eas one large-scale issue, blaming as root causes hospital monopoly of both treatment prescription and drug sales and the government’s Eacit consent Eto hospitals profiting from drug sales. He said drug prices charged to patients include ‘hidden ’profits for hospitals. He said hospitals often keep “two sets of books Eto falsely claim low profits. To end this, he called for the clear separation of hospitals from drug sales and a strict and clear regulations forbidding physicians from accepting additional income beyond their official salary.
Zhu Hengpeng, Director of Micro-economics Department and Public Policy Research Center, Institute of Economics of Chinese Academy of Social Science
As the session’s final speaker, Desmond Thio, Senior Vice President, Philips, General Manager Healthcare Greater China delivered a talk on “People Focused, Healthcare Simplified.”He outlined Philips contribution to health-care reform in China, based on the company’s China-based health-care operations focusing on both manufacturing and R&D. Among the critical issues impacting health in China, he identified: aging society (from 2011 to 2020, China’s over-60 population will increase from 13% today to over 20%); high smoking rate (China is home to 1/3 of the world’s smokers); Eremendous Eneed for trained medical personnel; and from 2009-2011, China plans to upgrade 2000 urban hospitals and 29000 rural health stations. In conclusion, he emphasized that Philips healthcare initiatives are “well aligned Ewith China’s healthcare reform in the focus on improving public hospital management and pricing; preventing and managing infectious and chronic disease; strengthening health-care services for women and children, encouraging private investment into the sector; and speeding county hospital reform. He was especially pleased to see government investment on healthcare reform increase from planned RMB850 billion during 2009-11 to RMB 1 trillion.
Desmond Thio, Senior Vice President, Philips, General Manager Healthcare Greater China
“Delivery and Payment Innovation”
The afternoon session on “Delivery and Payment Innovation, Emoderated by Professor Yu Wei, Sr Deputy Dean, School of Public Economics & Administration; and Director, Health Policy and Management Research Center, first featured speaker Lin Feng, Deputy Secretary-General, Zhenjiang Municipal People’s Government; Secretary of Party Committee, and Director of Zhenjiang Health Bureau focused on the need to shift improvement efforts too narrowly on urban hospitals to also “make sure the talent flows into the community level health care centers Eand initiating innovative efforts such as fighting chronic disease at the community health care center level. He said, “It is a tragedy that we are putting too much emphasis on the top-level facilities; we need to focus on the community level healthcare facilities. E
Yu Wei, Sr Deputy Dean, School of Public Economics & Administration; and Director, Health Policy and Management Research Center
Panelist Prof Wynand van de Ven, Professor of Health Insurance at Erasmus University (Rotterdam), offered a contrast between Asian and European health insurance practices, advocating the use of a third party rather than allowing government or insurers to determine insurance policy. He also stressed that individual citizens are often disadvantaged when seeking to wisely choose health insurance providers because of “asymmetrical information. EInstead, an informed neutral outside entity is better suited for this. He advocated the use of a “regulated competition model, Ewhich is now gaining popularity in other countries. Said Prof van de Ven, “You need a strong regulator who sets the rules for managing the industry. E
In his comments during the session, GAO Jiechun, Deputy Director, Shanghai Shenkang Hospital Development Center; and Director, Hospital Management Institute at Fudan University pointed out the importance of IT in achieving successful “managed regulation Eof China’s hospitals. He also said that although China’s health-care system now includes good regulations and policies, “enforcement still poses some problems. EHe advocated focusing on “prevention of disease rather than only focusing on treatment of a disease. ELastly, he encouraged the use of ‘pre-payment Eas a better system than post-treatment payment, stating “I am very firm that this is the direction in which we should go – it is the only method that works in China. E
GAO Jiechun, Deputy Director, Shanghai Shenkang Hospital Development Center; and Director, Hospital Management Institute at Fudan University
Sharing insight on the importance of new technology in improving healthcare service, Agfa HealthCare President Luc Thijs presented successful uses of IT advancements in Canada and other developed nations. He stressed the importance of obtaining all available information when offering healthcare service, then sharing information and discoveries. Finally, he introduced new initiatives in “e-Health Eand the use of e-commerce in health care services.
Agfa HealthCare President Luc Thijs
Offering another comparison between China and Europe, Care Ventures Founder and Executive Eric Souetre focused his talk on diagnostics, especially clinical laboratories. He urged both sides to collaborate to share information and leverage experience. First, he said Europe can offer to China the experience gleaned through laboratory research into diagnostics. “Although in Europe, we made many mistakes, we can transfer our learning and information to help China to avoid our mistakes, Ehe said. Secondly, both sides can share management capabilities. Finally, Europe can learn from China in terms of observing health-care development in a fast-changing environment, learning new methods of efficiency, and developing new IT systems.
China Health Care Summit Roundtable – Collaboration to Win
“China Health Care Summit Roundtable – Collaboration to Win,” was the theme of the forum’s final session, moderated by CEIBS Professor of Management and Director of the Center for Health Care Policy and Management Zhang Wei. Presenting first was Dr Yu Zhiwei, director of the Center for Project Supervision and Management, Ministry of Health of PRC, who shared his advice on public hospital reform. He emphasized the benefits of adopting a “clinical pathway system Eused in the West, which offers “blueprints specifying the compulsory or optional service items for a certain disease. ETo address aspects of China’s current healthcare system which are “not efficient and not safe, EDr Yu recommended establishing a “coordinate reform Eacross China’s urban and rural health care facilities, and strengthening healthcare system reform at the county level.
CEIBS Professor of Management and Director of the Center for Health Care Policy and Management Zhang Wei
Kevin Schulman, Professor of Medicine & Gregory Mario and Jeremy Mario Professor of Business Administration; Director of Health Sector Management Center, School of Business, Duke University spoke on “Technology and the Impact on Health Care Delivery. EBased on data from the US, Prof Schulman listed the following benefits of Health Information Technology: reduced hospital stays, improved patient safety, increased drug compliance, improved efficiency, and preventive care, knowledge synthesis and application and enhanced disease management and care delivery redesign. Dr Schulman gave examples of effective IT uses at Duke University, introducing the concept of “Meaningful Use Ewhich rewards IT technology for clearly benefiting patients according to specific measures.
Turning to the topic of “Uphold the Value of Physicians to Achieve a Win-win for All Parities, EDr Xiong Xianjun, Vice President & Secretary-General of the China Health Insurance Research Association; and Deputy Director, Institute of Social Security of Minister of Human Resources and Social Security stressed the need for reforming the governance of the value (or compensation) of physicians. He advocated eliminating ‘price distortion Ein the current income system for physicians, in which doctors are encouraged to seek illegitimate income to supplement low salaries. He also urged a separation of the management of physicians from the management of hospitals, adopting a freelance system, and a penalty system for such actions as bribe taking or improper pricing of drug treatments.
Xiong Xianjun, Vice President & Secretary-General of the China Health Insurance Research Association; and Deputy Director, Institute of Social Security of Minister of Human Resources and Social Security
As the final speaker of the day, West China Hospital President, Professor Shi Yingkang, delivered an address on “Information Revolution Fuels Healthcare Reform Eusing examples of Cloud Computing based on initiatives from Google and IBM. “The technology revolution is driving social reform and advancement, Ehe said. In terms of the health-care sector, a primary benefit so far has been “integration Eacross medical services, medical education, and medical research. He shared examples from India that offer mobile medical services via virtual online services.
Shi Yingkang, West China Hospital President
In closing, CEIBS Vice President and Dean John A Quelch delivered a videotaped message to participants emphasizing the commitment of the school to knowledge creation in the healthcare sector. “Probably the most important challenge faced in this industry is the ability to manage change – change in the systems and processes engaged in the creation of value in health care. EHe added that the purpose of CEIBS EHealth Care Policy Research Centre is to help “enable societies and enterprises to succeed Ein their endeavours to improve the health care sector. This requires “the bring together of individuals from across the industry, Efrom physicians, to hospital administrators, to researchers. “All of these people have a role to play. Accordingly, the heath care center at CEIBS is dedicated to that multidisciplinary approach as we seek to make CEIBS the leader in terms of health-care industry management and to innovate and develop new knowledge to enable Chinese citizens to live longer and healthier lives. E
Ending the day with a recap of lessons learned during the forum, CIEBS President Pedro Nueno commented that the day began by addressing some of the negative problems facing the industry, but said the speakers quickly rallied in order to look ahead toward positive developments and encouraging trends. He thanked the leaders of sponsor companies Lilly, Philips and Agfa in particular for focusing their discussion on sharing promising new innovations and technologies that are improving the healthcare industry worldwide, and in China. “Throughout the forum, lead by our corporate sponsors, our speakers emphasized the ability of improvements and medical solutions, and focused on the need for regulation, ethics, transparency in the health care industry, Ehe said. He also mentioned that the importance of IT, talent development, and collaboration also emerged as key themes for this year’s forum. He ended by promising participants that CEIBS will “continue to work hard to improve health care, which is one of the leading sectors in the Chinese economy. The better we do in health care, the better for all of us. E
CIEBS President Pedro Nueno
Twitter-based competition targeting cancer prevention challenges continents to race towards a healthier lifestyle; $20,000 will be donated to one country’s Red Cross or Red Crescent Society
Chalfont St. Giles, UK E/em> Today GE Healthcare launched a global competition on Twitter to raise public awareness about cancer prevention and healthy living. For the next two months, the “Get Fit Ecampaign will encourage people from all over the world to tweet about their own health and fitness activities that have been shown to reduce the likelihood of developing cancer.
Continents will compete against one another to race towards fitness. At the end of the competition, one country’s Red Cross or Red Crescent Society, on the winning continent, will receive a donation of $20,000 based on an open vote.
“GE Healthcare has a long history of creating medical solutions that enable physicians to discover, diagnose and treat cancer, Esaid John Dineen, CEO of GE Healthcare. “And while ‘Get Fit Eis a friendly competition, there is a serious message behind it Ein addition to all the initiatives launched by the company such as healthymagination and Health Ahead, GE Healthcare is committed to making a significant change in the fight against cancer. We believe that combining a healthy lifestyle with earlier detection of cancer through the development of technology breakthroughs will make a real impact on a person’s likelihood of developing cancer. E/p>
The World Health Organization reports that nearly 30 percent of all cancer deaths can be prevented, and research confirms that a healthy diet and regular exercise can help reduce the risk of cancer. For information about activities that people can do to potentially reduce their risk of cancer, refer tothis article on the GE Healthcare Newsroom.
The Rules of the Game
Participants in the competition need only to have access to the internet and a Twitter account. They simply Eweet Ea comment about what they are doing to strive for a healthier lifestyle Ee.g., cycling to work, cutting out smoking or eating a healthy meal. To be recognized as part of the “Get Fit Ecompetition, each tweet must include the specific “Get Fit Ehash tag for the participant’s country, which can be found on the “Get Fit Eweb page athttp://www.ge.com/getfit. As long as the hash tag is included in the tweet, then it doesn’t matter which language is used for the tweet.
The “Get Fit Eweb page will show the progression of the competition on a world map showing which continents are generating the most ‘healthy tweets. EAs participants tweet about their healthy activities, the cells hovering over each continent will gradually change from a ‘risky red Eto a ‘healthier green Ecolor. The map also shows how many tweets have been generated by each country, and the country’s ranking among its continental neighbors.
The winning continent will be the first to turn its cells green, or the continent that has progressed furthest down the color spectrum outlined on the map. At the end of the competition, an open vote will be held to determine which country on the winning continent will receive a $20,000 donation to the Red Cross or Red Crescent Society operating in that country.
OSAKA, Japan, and ZURICH, Switzerland ETakeda Pharmaceutical Company Limited (“Takeda E TSE: 4502) and Nycomed A/S (“Nycomed E jointly announced that Takeda has reached an agreement with the shareholders of Nycomed in which Takeda will acquire the Zurich-headquartered company for 9.6 billion Euro on a cash-free, debt-free basis. The boards of directors of each company unanimously approved the transaction which is expected to be completed within 90 to 120 days, making it a wholly owned subsidiary of Takeda, subject to antitrust clearance. The purchase would exclude Nycomed’s U.S. dermatology business.
The sellers are comprised of a consortium of private equity funds led by Nordic Capital Funds V and VI (“Nordic Capital E, including, DLJ Merchant Banking Partners (a Credit Suisse affiliate), Coller International Partners IV and V, and Avista Capital Partners.
This transformational transaction is a strategic fit with Takeda’s sustainable growth strategy as it was outlined in its 2011 E013 Mid-Range Plan. Takeda has its strong presence in the Japanese and U.S. markets, while Nycomed has a significant business infrastructure in Europe and high-growth emerging markets that will enhance Takeda’s regulatory development expertise and commercialization capability. The acquisition includes the roflumilast franchise (Daxas®; trade name in Europe), a first-in-class treatment for chronic obstructive pulmonary disease (COPD), which is expected to be a major source of revenue growth for Takeda. In addition, the acquisition will bring Takeda an immediate and stable increase in cash flow with Nycomed’s more than 2.8 billion Euro in annual revenue, excluding the U.S. Dermatology business.
“Takeda is committed to transforming our organization through the acquisition of Nycomed. Nycomed enables Takeda to maximize the value of our portfolio and gives us an immediate strong presence in the high-growth emerging markets while doubling Takeda’s European sales, Esaid Yasuchika Hasegawa, President & CEO of Takeda. “Nycomed’s strength in a geographically wide range of markets and its diverse talent base will be a strong driver to helping us realize our important mission of striving toward better health for patients worldwide through leading innovation in medicine. E
Nycomed, headquartered in Zurich, Switzerland, is a privately-owned pharmaceutical company with strong presence in Europe and emerging markets. Nycomed’s diversified product portfolio includes both established prescription pharmaceutical products as a primary revenue driver, and over the counter (OTC) products. It has a strong European commercial network and is aggressively growing in emerging markets which account for more than 50 percent of global pharmaceutical growth. Its key success factors include the utilization of its broad product range and the application of commercialization and development strategies that fit with the market environment and medical needs in each individual country and region.
“The combination of Takeda’s successful track record of innovation with Nycomed’s efficient commercialization and manufacturing infrastructure will create a global player with a phenomenal ability to bring medicines to patients and healthcare providers around the world, Esaid Håkan Björklund, Chief Executive Officer of Nycomed.
Through the addition of Nycomed’s remarkable entrepreneurial corporate culture to Takeda’s corporate culture, nurtured for more than two centuries, Takeda is aiming to become a truly global pharmaceutical company with a diversified talent base capable of conducting global business effectively.
Since being acquired by Nordic Capital along with co-investors in 2005, Nycomed has followed an aggressive growth strategy that has propelled the company to an international player with a broad and strong market presence.
“The investment in Nycomed has outperformed even the highest expectations. We are proud to have contributed to Nycomed’s development into a world-class pharmaceutical company with a strong market position and product pipeline. I feel confident that Takeda will be able to further build upon Nycomed’s potential and create an even stronger company with a global market presence, Esaid Kristoffer Melinder, Managing Partner of NC Advisory AB, advisor to the Nordic Capital funds.
Pfizer and Shanghai Pharmaceutical Sign Memorandum of Understanding for Potential Strategic PartnershipMay 27, 2011 | Main Editorial Team
SHANGHAI, China and NEW YORK–Shanghai Pharmaceutical Co. Ltd. and Pfizer Inc. announced the signing of a memorandum of understanding (MOU) for the companies to jointly pursue potential business opportunities in China.
The potential partnership is intended to leverage both companies Estrengths, matching Pfizer’s global capabilities in developing innovative medicines with Shanghai Pharmaceutical’s capabilities and reach in the China market. The companies are currently exploring a potential cooperation for the registration, commercialization and distribution in China of an innovative Pfizer product. In addition, the companies plan to explore future cooperation opportunities, including further distribution and commercialization, research and development activities, manufacturing and equity investment opportunities. The companies also expect to strengthen their existing cooperation for the promotion of Pfizer’s Prevenar (7-valent) a pneumococcal conjugate vaccine, approved for use in China for active immunization of infants and toddlers for the prevention of invasive diseases caused by the bacterium Streptococcus pneumonia. Details of the companies Evarious areas of potential cooperation under the strategic partnership will be set forth in future definitive agreements.
“Our intent to explore a range of business opportunities with Shanghai Pharmaceutical is an example of our commitment to expand our presence in China in collaboration with the local industry, Esaid David Simmons, President and General Manager, Emerging Markets and Established Products of Pfizer Inc. “Shanghai Pharmaceutical has been one of Pfizer’s major partners in China for years and is currently our largest distribution customer in the market. E/p>
“From our first partnership discussion with Pfizer, we were impressed not only with their capabilities, but also their thoughtfulness toward the Chinese market, Estated Lu Mingfang, Chairman of Shanghai Pharmaceutical. “The Chinese pharmaceutical market is very dynamic and we believe a company must be forward thinking to succeed in China. Shanghai Pharmaceutical is built off of a vision for what the Chinese healthcare market will become, not what it has been. We respect Pfizer’s global experiences and resources and believe they are an ideal partner for us in the continuous evolution of our business model and implementation of an international strategy E
Merck, known as MSD outside the United States and Canada, and Sun Pharmaceutical Industries Ltd., a leading Indian multinational pharmaceutical company, announced the creation of a joint venture to develop, manufacture and commercialize new combinations and formulations of innovative, branded generics in the Emerging Markets.
“Merck’s Emerging Markets strategy is driven by our overarching focus on applying innovation across our business from introducing novel compounds to broadening our focus on innovative branded generics,” said Kevin Ali, president, Emerging Markets, Merck/MSD. “By combining forces with Sun Pharma, we are complementing our innovative product portfolio with a solid foundation for addressing the diverse needs of patients, physicians and governments across the Emerging Markets.”
The partnership combines Sun Pharma’s proven track record of leadership and expertise in rapid, innovative product development using Sun Pharma Advanced Research Company Ltd’s (“SPARC”) proprietary platform technologies, and Sun Pharma’s world-class manufacturing network with Merck’s clinical development and registration expertise and a broad, geographic commercial footprint. The companies said that they will focus on ‘innovative branded generics,’ that bring together combinations of medicines using platform delivery technologies designed to enhance convenience for patients in Emerging Markets. The joint venture will be structured through Merck and Sun Pharma’s respective subsidiaries. Financial details of the joint venture were not disclosed.
“This joint venture reinforces our strategy of partnering to launch products using our highly innovative delivery technologies around the world,” said Dilip S. Shanghvi, chairman and managing director, Sun Pharmaceutical Industries Ltd. “Merck has an unrivalled reputation as a world leading, innovative, research-driven pharmaceutical company. We’re proud to be associated with them and look forward to working together.”
Experts estimate that during the coming decade, the Emerging Markets are expected to drive 90 percent of the world’s pharmaceutical growth, with 75 percent of that growth coming from branded generics. In these markets, the growing burden of chronic disease, such as cardiovascular disease, diabetes and hepatitis, along with an increasing population and economic prosperity, is leading to an increased demand for branded generics.
“Merck has a proud legacy of developing innovative medicines and vaccines with proven ability to impact global human health,” said Ali. “We are making good progress executing on our Emerging Markets growth strategy by establishing novel partnerships and strategic alliances. This joint venture helps position us for leadership in the fastest growing geographies.”
The collaboration between MSD and Sun Pharma will be managed by a Joint Board and leadership team, consisting of members of senior management from both companies.
Toshiba Medical Systems Corporation (“TMSC E and Vital Images, Inc. (Nasdaq: VTAL) (“Vital E announced today that they have entered into a definitive agreement pursuant to which a subsidiary of TMSC (“Merger Sub E will acquire all of the outstanding shares of common stock of Vital for $18.75 per share, or approximately $273 million in the aggregate, through a cash tender offer followed by a merger.
Under the terms of the agreement, which has been unanimously approved by each of Vital’s and TMSC’s boards of directors, Vital’s shareholders will receive $18.75 in cash for each outstanding share of Vital common stock they own. This represents a 39 percent premium over the volume-weighted average Vital share price for the past 30 calendar days.
Satoshi Tsunakawa, chief executive officer of TMSC, said: “After a decade-long successful partnership spanning more than 50 countries, TMSC is taking the partnership to the next level. We have enormous respect for Vital’s products, pipeline and people, and look forward to working with their highly skilled team to enhance clinical value for patients throughout the world. This transaction will allow TMSC to significantly strengthen its Imaging Solutions business by integrating our technologies to meet the global demand for advanced visualization and imaging informatics provided to healthcare professionals and through healthcare IT providers. E
Michael Carrel, CEO of Vital, stated: “This is a great day for Vital’s shareholders, employees, customers and partners. TMSC has been our largest customer for a decade, as well as a strategic development partner. We will combine forces to enhance the multi-modality platform we have been marketing to hospitals in the U.S. and overseas. This transaction means we can now accelerate our global presence with the strength and backing of TMSC. E
Under the terms of the agreement, it is anticipated that Merger Sub will commence a tender offer for all of the outstanding shares of Vital by May 11, 2011.
The closing of the tender offer is conditioned on, among other things, the tender of at least a majority of the outstanding shares of Vital’s common stock on a fully diluted basis, required regulatory approvals, including those of the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions. It is expected that the transaction will close in the second or third quarter of 2011.
For this transaction, Morgan Stanley & Co. Incorporated acted as financial advisor to TMSC and Simpson Thacher & Bartlett LLP is acting as TMSC’s legal counsel. Piper Jaffray & Co. acted as financial advisor to Vital and Faegre and Benson LLP is acting as Vital’s legal counsel.
Vital’s Commentary on First Quarter Earnings
On a preliminary basis, Vital’s revenue for the first quarter of 2011 was better than expected for its non-TMSC business, although revenues pertaining to TMSC were negatively affected by TMSC’s business. While overall first quarter 2011 revenue was better than first quarter of 2010, it will be slightly below analyst expectations. Earnings were largely in-line with expectations. Vital expects to report full first quarter financial results on May 2, 2011; however, in light of the pending transaction, the first quarter earnings conference call on May 5, 2011 has been cancelled.
TMSC was established in October 2003 when the Medical Systems Division of Toshiba Corp became an independent group company specializing in medical diagnostic imaging systems. The company is a leading worldwide provider of diagnostic imaging systems and comprehensive medical solutions, such as CT, X-ray and vascular, ultrasound, nuclear medicine, and MRI systems, as well as information systems for medical institutions. TMSC has been providing medical products for over 80 years.
Toshiba Corp is a worldwide leader in technology, electronic and electrical products, digital consumer products, electronic devices and components, power systems, industrial and social infrastructure systems and home appliances. Toshiba Corp was founded in 1875, and today operates a global network of more than 742 companies, with 204,000 employees worldwide and annual sales surpassing US$68 billion.
About Vital Images, Inc.
Vital, Inc. is a leading provider of advanced visualization and analysis software for physicians and healthcare specialists. The company’s software provides users productivity and communication tools to improve patient care that can be accessed throughout the enterprise anytime, anywhere via the Web. Established in 1988 and headquartered in Minneapolis, Vital also has offices in Europe and Asia. For more information, visit www.vitalimages.com.