AsianScientist (Jan. 6, 2016) – Eisai Co., Ltd. has completed the acquisition Liaoning TianYi Biological Pharmaceutical Co., Ltd., a Chinese generic pharmaceutical company located in Benxi, Liaoning Province. Conditions of the transfer, first announced on November 27, 2015, have been arranged, including receiving a new business license from the regulatory authority in China.
The trading name of Liaoning TianYi Biological Pharmaceutical Co., Ltd. was changed to “Eisai (Liaoning) Pharmaceutical Co., Ltd.” (Eisai Liaoning), and the company has become a wholly-owned subsidiary of Eisai China Holdings Ltd.
Through this acquisition, Eisai has entered the generic pharmaceutical business in China in addition to expanding its existing business focused on new medicines. By further strengthening its business foundation established over 25 years of doing business in China and providing a stable supply of high quality generic pharmaceuticals, Eisai is able to fulfill an even wider range of medical needs in China.
The China pharmaceutical market is the second largest in the world after the United States, and in 2014 was worth US$109.3 billion, an increase of 12 percent from the previous year. Despite China experiencing a slowdown in economic growth, the China pharmaceutical market is expected to maintain strong growth into the future due to substantial expansion via the rapid aging of the population and the government’s policies to improve access to medicines.
In particular, even higher growth is expected for generic pharmaceuticals that will make up the majority of prescriptions in small and medium sized cities in inland and regional areas as well as small and medium sized hospitals which have had inadequate access to medicines until now.
In terms of value, generic pharmaceuticals account for approximately 80 percent of the China pharmaceutical market. With the government aiming to improve the quality of generic pharmaceuticals in China, there is strong demand for the stable supply of generic pharmaceuticals with a high level of quality on par with branded pharmaceuticals.
Source: Eisai; Photo: Shutterstock.
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