Print“By strategically locating in China, we are able to complement our existing R&D; capabilities, and facilitate new collaborations with scientists in the region and across emerging markets.”
Merck said it will establish an Asia research and development headquarters for innovative drug discovery and development located in Beijing, China. The new facility is part of a $1.5 billion commitment the company is making to invest in R&D in China over the next five years.
Merck’s move is not unprecedented. Every major multinational pharmaceutical player is establishing relationships and presences in China to take advantage of its growing healthcare market and increasing scientific capabilities. As they cut employees and close R&D centers in Europe and the United States, they are increasing their workforce and presence in China and other emerging markets, such as Russia and Brazil.
Merck has emphasized its emerging markets growth strategy, having identified not only the BRIC countries, but Mexico, South Korea, and Turkey as well as important countries of focus. It plans to bring existing drugs to treat unmet needs in these markets and to access their growing innovation to develop drugs for the global market.
“By strategically locating in China, we are able to complement our existing R&D capabilities, and facilitate new collaborations with scientists in the region and across emerging markets,” says Peter Kim, president, Merck Research Laboratories.
Merck’s new Asian headquarters will have 47,000 square meters of office and laboratory space with the first phase of construction scheduled to be completed by 2014. It will have space for 600 researchers to work in the areas of drug discovery, translational research, clinical development, regulatory affairs, and external scientific research.
Merck, known as MSD outside the United States and Canada, has already established commercial headquarters in China in Shanghai and has manufacturing capabilities throughout the country. Recently MSD formalized a collaborative partnership with China’s genomics powerhouse BGI to identify and characterize biomarkers with an emphasis on drug discovery and development across many therapeutic areas.
The drugmaker also said it was setting up a joint venture with Chinese pharmaceutical Simcere to increase access to its drugs in important therapeutic areas such as cardiovascular and metabolic diseases. The incidence of non-communicable chronic conditions such as diabetes and the precursors of heart disease, linked to China’s growing middle-class and its inherent lifestyle changes, are growing rapidly in the country.
“The establishment of the MSD Asia R&D headquarters,” says Kim, “represents an important milestone as we implement our strategy of building capabilities, and relationships to succeed in fast growing geographic regions.”
December 09, 2011
http://www.burrillreport.com/article-merck_outlines_1_5_billion_commitment_to_expand_rd_in_china.html
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