Slow Japanese Pharma Moves Into China

Despite the proximity, Japanese pharmaceutical companies do not seem to be making fast inroads into the mainland Chinese pharmaceutical market. According to analysts at Lehman Brothers, who have recently completed a fact-finding visit to China, of the top-ten Japanese prescription drugmakers, only half have established or plan to set up local affiliated firms in China.

Of the top ten Japanese drug firms, Eisai has an affiliate in Shenyang and Tanabe Seiyaku has a joint venture in Tianjin. Takeda (in Tianjin) and Yamanouchi (in Shenyang) have set up a firms this year, and Chugai is moving toward establishing a joint venture in Shanghai.

But companies moving towards Chinese investment are believed to be increasing by the Lehman analysts, who note that they think Daiichi and Fujisawa, as well as Sankyo, which has recently opened an office in the capital, Beijing, should move towards setting up joint ventures in China in the near future.