Sector News

Johnson & Johnson Seeks Acquisitions in China

November 10, 2014
Life sciences
Johnson & Johnson is seeking acquisitions and aiming to expand in China despite facing a variety of challenges there, including a slowdown in the country’s economy.
 
Johnson & Johnson, which makes everything from prescription drugs and medical devices to Band-Aids and Listerine mouthwash, wants to boost its pharmaceutical sales in China by zeroing in on treatment for highly prevalent diseases, such as lung cancer, Chief Executive Alex Gorsky said in an interview with The Wall Street Journal on Monday. Medical devices accounted for half of the New Brunswick, N.J.-based company’s roughly $3 billion in China sales last year, which jumped 10% from 2012, Mr. Gorsky said. He said that pharmaceutical and consumer product sales are evenly split.
 
“One of the things we are concerned about is the drug lag you see,” Mr. Gorsky said, noting that it takes an average of eight years for drug approval in China, compared with four years in other markets. J&J is also eyeing Chinese companies to add to its portfolio of baby and beauty products, medical devices and drugs, Mr. Gorsky said on the sidelines of the Asia-Pacific Economic Cooperation CEO Summit.
 
Johnson & Johnson, an early entrant in the China market, has faced stiff competition there in recent years, as local and international rivals have piled in to sell baby products and medical devices. Challenges, such as piracy and patent protection, have created setbacks. The Chinese economy is also facing a slowdown.
 
J&J was among a number of contact-lens companies that were fined more than 19 million yuan ($3 million) in May for price-fixing in China’s eyeglass and contact lens market. J&J was fined 3.6 million yuan.
 
Mr. Gorsky said the company prioritizes “competing in an appropriate manner” and is doing its best to work with the government “to ensure a level playing field” under a common set of standards.
 
There are some cases in which J&J doesn’t face fair competition in China, Mr. Gorsky said. When asked to elaborate, he would only say “we support government actions in creating a leveled playing field for all companies.”
 
While China’s overall growth is slowing, access to health care has increased, Mr. Gorsky said, adding that J&J also sees opportunities for serving China’s aging population and treating noncommunicable diseases.
 
By Laurie Burkitt
 

comments closed

Related News

October 17, 2021

Colorcon acquires a majority share in Ideal Cures Pvt. Ltd., India

Life sciences

Ideal Cures will operate as a fully independent entity within Colorcon. Their business complements Colorcon’s position in the Indian pharmaceutical market with a strong presence in the domestic generic sector comprised of long-standing customer relationships sustained by innovative and customized solutions.

October 17, 2021

Barriers exist, but participation urgent in breast cancer clinical trials: report

Life sciences

Across four new breast cancer treatments approved by the FDA last year, 2% to 9% of patients in clinical trials for the drugs were Black Americans and 0% to 9% were Hispanic, according to a new report from Breastcancer.org.

October 17, 2021

Danish consortium acquires part of Jernbanebyen to create one of the world’s healthiest urban villages

Life sciences

The southern section of Jernbanebyen in central Copenhagen has a new owner. The Baneby Consortium, comprising NREP, Novo Holdings and Industriens Pension, has bought the land from Freja Ejendomme. The ambition is to create a green, partly car-free environment that will also be one of the healthiest in the world. 

Send this to a friend