Page 28 - Sphere No.26 (Mar 2010)

26
Clockwise from above:
Today, companies like
Baiyunshan take a 21st
century approach to the
quality of their products;
producing medicines at
Baiyunshan’s headquarters
in Guangzhou; various
product lines on display;
a satisfied customer.
thousands of years, spanning many Chinese dynasties, long before hi-tech
laboratories and regulatory bodies came into being.
Having said that, the need to provide systematic proof of any drug’s
effectiveness is mandatory in the modern world, which is why Hutchison
Baiyunshan and its parent company Chi-Med devote significant funding
to research and development. Indeed, 14 of Chi-Med’s drugs were recently
added to the Ministry of Health’s official New National Essential Medi-
cines List in China. Contemporary scientific methods are used to test and
verify ancient medical theories, carried out in Hutchison Baiyunshan’s new
facilities which look just like modern chemical drug production factories.
Hutchison Baiyunshan also takes a 21st century approach in other
areas, ensuring that its patents and trademarks are fully protected and
that it sells the products at affordable prices. That socially-responsible
approach also extends to encouraging consumers to respect the sell-by
date – customers can even replace medicines that have gone beyond the
expiry date free of charge. The company also makes corporate donations
to worthy causes, such as for SARS research or to help victims of the
devastating earthquake in China’s Sichuan province.
On a more technical level, the factories have strict sanitary and safety
standards. Its four herb-growing sites meet Good Agricultural Practice
standards, with no excessive use of pesticides or genetically modified seeds.
It is not just Ban Lan Gen that is enjoying vigorous sales. The compa-
ny’s Fu Fan Dan Shen tablets, used to treat chest conditions and angina,
have proved to be strong performers, with sales up 15 per cent in 2008.
Kou Yan Qing granules, used for detoxification and treatment of mouth
ulcers, and Xiao Yan Li Dan tablets, which help with the proper function-
ing of the liver and gallbladder, are also selling well.
Overall, Hutchison Baiyunshan’s over-the-counter drug sales rose
almost 30 per cent in 2008, the kind of growth that has become the
norm since Chi-Med took a significant stake in the company five years
ago. There are now 1,500 sales and marketing staff covering every city in
China with a population of more than one million people.
The company’s pioneering work has interested the major global
pharmaceutical and food players, who clearly sense that there are
business opportunities on the horizon. In October, Chi-Med announced
the signing of a joint venture agreement between its subsidiary,
Hutchison Organic Holdings Limited, and The Hain Celestial Group,
a leading US organic products company, to distribute food products
for infants and toddlers. Chi-Med already has partnerships with Merck
Serono, Lilly and Johnson and Johnson.
“China is the new frontier for pharmaceuticals in general and we are
the pioneers,” said Mr Hogg. “At the end of the day, if the drugs pass all the
clinical trials, the rewards can be in the hundreds of millions of dollars.
It is high risk and needs huge investment in research and development.”
To that end, Chi-Med has a facility in the east-coast city of Shang-
hai, headed by United States-trained scientist Samantha Du. It has been
able to lure some of the best scientific talents in the country to conduct
research on traditional medicine herbs and compounds. Chi-Med is the
first company to conduct such systematic research on such a grand scale.
Breakthroughs can take years, but all the signs so far are positive, with
a number of traditional TCM cures at the advanced trial stage. It will
only take one positive certification from the American Food and Drug
Administration to make the medical world at large sit up and take much
more notice of TCM.
China is the new frontier
for pharmaceuticals, and
we are the pioneers
Sphere