[Ip-health] AstraZeneca's China Play,Drug Firm Endorses,Beijing Enforcement,With R&D Initiative

[Joana Ramos]

<snip>
>
> Like many global pharmaceutical firms, AstraZeneca is conducting
> clinical trials in China, where costs are lower and there is a large
> pool of potential participants. The new funds, which will be spread
> over a three-year period, will help expand the clinical trials to
> include early-stage drugs and will fund the launch of a new research
> center focusing on cancer research and treatment. AstraZeneca also
> will give grants to Chinese firms and institutions conducting research
> of interest.
<snip>
> Executives said the new center in China will focus on cancer research,
> noting that some of its recent tests have found that Asian patients
> often respond differently to some cancer treatments. They said
> developing new products for China is important given that market's
> rapid growth. At $250 million to $300 million, AstraZeneca's annual
> sales in China are a small portion of its $23.95 billion global take
> in 2005, but they have been increasing more than 30% a year.

URL for this article:
http://online.wsj.com/article/SB114863805870964103.html

AstraZeneca's China Play
Drug Firm Endorses
Beijing Enforcement
With R&D Initiative

Wall Street Journal
By ANDREW BATSON
May 29, 2006

( copied as fair use)

BEIJING -- AstraZeneca PLC, citing improvements in China's protection of
patent rights and other intellectual property, announced a $100 million
expansion of its drug research-and-development program in the country
Friday.

The planned investment by the London pharmaceutical firm, the world's
sixth-largest in terms of sales, is a vote of confidence in the Chinese
government's efforts to crack down on the rampant production of
counterfeit goods. In the face of persistent criticism from the U.S. and
other trading partners, China this year has stepped up its enforcement
campaigns and toughened penalties for intellectual-property rights
violators.

"What we're encouraged by is the momentum. There is clearly a tremendous
amount of energy behind this [effort]," Chief Executive Officer David
Brennan said in an interview.

However, he noted that China's protections of patented products such as
drugs still lag behind those of other countries and said AstraZeneca has
made it clear to the government that any further investment will require
continued improvement.

Like many global pharmaceutical firms, AstraZeneca is conducting
clinical trials in China, where costs are lower and there is a large
pool of potential participants. The new funds, which will be spread over
a three-year period, will help expand the clinical trials to include
early-stage drugs and will fund the launch of a new research center
focusing on cancer research and treatment. AstraZeneca also will give
grants to Chinese firms and institutions conducting research of interest.

The new initiative in China is just part of a wave of new activity at
the Anglo-Swedish drug firm's research operations. The company this
month announced it will buy Cambridge Antibody Technology Group PLC, a
company that is developing therapies for cancer and arthritis, for $1.3
billion, and has signed a number of licensing agreements with other
biotechnology and pharmaceutical companies.

Mr. Brennan has made overhauling AstraZeneca's research operations a top
priority since he took over the top job Jan 1. Development of new
products has suffered some high-profile setbacks in recent months, with
the withdrawal of diabetes treatment Galida and blood thinner Exanta.

Executives said the new center in China will focus on cancer research,
noting that some of its recent tests have found that Asian patients
often respond differently to some cancer treatments. They said
developing new products for China is important given that market's rapid
growth. At $250 million to $300 million, AstraZeneca's annual sales in
China are a small portion of its $23.95 billion global take in 2005, but
they have been increasing more than 30% a year.

Write to Andrew Batson at andrew.batson@dowjones.com

--
Joana Ramos, MSW
Cancer Resources & Advocacy
7303 23rd Ave. NE
Seattle, WA  98115
206-229-2420
http://ramoslink.info/