Merck to team up with Sinopharm

Joining with Sinopharm

Merck & Co. are team up with Chinese drug-maker Sinopharm, one of the country's biggest distributors and manufacturers of health products, in order to market drugs and vaccines in the region.

It is another bid by Merck to expand into other markets, and the joint venture with Sinopharm will ensure a way-in to the Chinese market, especially with cooperation on vaccines for human papillomavirus in China. Human papillomavirus, or HPV, is a sexually transmitted disease that causes most cases of cervical cancer. Merck makes Gardasil, one of two vaccines approved to prevent HPV.

The partnership between the two countries will enable Merck, who is based in New Jersey, to sell its drugs to the world's third-biggest economy with a population of more than 1 billion people.

Products that Merck are expected to throw its weight behind include its diabetes pill Januvia, heart drugs Cozaar and Hyzaar, Remicade for rheumatoid arthritis and Singulair and Nasonex for allergies.

New partner

While Merck & Co. is well established, Sinopharm is less well known in US pharma circles. Short for China National Pharmaceutical Group Corp., Sinopharm is China's largest pharmaceutical and health industrial group under supervision of the State Council. Its 10 businesses include drug distribution and sales, pharmaceutical production, traditional and herbal medicines, medical device manufacturing and six institutes working on biological products.

Last year, the entire group had revenue totaling $9.5 billion. According to its website, the company is aiming to increase revenue by about 50 percent in 2012 and to become one of the top 500 global corporations in 2015.

Commenting on the partnership, Richard T. Clark, Merck's Chief Executive said, "Innovative partnerships are key element of our approach."

It also goes without saying that by making in-roads into China, Merck is opening an entire continent of potential customers especially with sales of prescription drugs growing in India and Russia, thanks to their large populations, a growing middle class and a government investing more money in health care.

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