asian med news_april 2002

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Issue No. 10 April 1st 2002

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CONTENTHIGHLIGHTSJAPANBanned blood products distributed for ten years in Japan ................... 2

Government approves stem cell production for first time .................... 2

Hospitals to clamp down after run of fatal mistakes ........................... 3

Lung cancer deaths up sharply but other cancers drop ....................... 3

Ministry to abandon repeat tuberculosis shots ..................................... 4

Daiichi to work with whisky-maker on Alzheimers ............................ 4

Stock companies ousted from medical reforms ................................... 5

Yamanouchi seals three-year genomics deal ....................................... 5

Japan In Brief and share price movements ......................................... 6

CHINASIIC subsidiary listing masks stable profits in 2001 ............................. 7

HIFU knife finds its first overseas home in watershed export ............ 7

High leukemia drug prices costing lives, say doctors ........................... 8

Cosmetic surgery crackdown to take place this year .......................... 8

China In Brief ................................................................................... 8-9

SOUTHEASTASIASingapore: Parkway relaunches drive to buy up private clinics ......... 10

Singapore: Raffles slides into first ever loss ...................................... 10Thailand: launches ultra-cheap HIV cocktail ..................................... 11

Southeast Asia In Brief ..................................................................... 11

KOREAMedison plans full recovery within twelve months ............................ 12

Dong Wha puts great store by liver cancer therapy agent ................ 12

SK focuses on bioengineering as future profit driver ........................ 13

Korea In Brief ................................................................................... 13

INDIA

Nicholas Piramal in widespread biotech talks .................................... 14Medical sales reps confirm month-long strike ................................... 14

Cipla only Asian firm to make WHO list of AIDS drug suppliers ..... 14

WHO list of pre-qualified HIV/AIDS drugs...................................... 15

Lack of patent law a hindrance to foreign investment, says US ....... 16

India In Brief and Indian share price movements......................... 16-18

Conference calendar ..................................................................... 19-21

Companies, organizations and research centers in this issue ............. 22


2/18

Asian Medical Industry News

Issue No. 10, April 1st, 20022Published by Proof 100 Ltd. For details or a free trial,

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Banned blood products distributed for

ten years in Japan

The Japanese health ministry allegedly continued to

approve a blood product in the country for ten years

after it was banned in the US. The news is anotherunwelcome scandal for a ministry seemingly unable to

shake off a reputation for incompetence and inaction.

The US Food and Drug Administration moved in 1977

to revoke manufacturing approval for blood products

using fibrinogen. The substance had been used as a

blood clotting agent for nearly forty years but there

were concerns that it could cause widespread hepati-

tis C infection because of its use of pooled blood.

Fibrinogen-based products were produced in Japan by

Green Cross (now Mitsubishi Pharma), which had re-

ceived health ministry approval in 1964. However, even

after the US action, Japanese health officials did noth-

ing about Green Cross for a decade, finally requiring

the company to issue a recall only in 1987.

No knowledge

That is despite a health ministry official publishing a

report in 1979 which noted the FDA decision. At least

one official at the Health, Labor and Welfare Ministry

in charge of blood products is quoted as saying he knewnothing of the FDA decision until this month.

Government approves stem cell

production for first time

Japan will start producing stem cells for the first time

after approval by an expert committee of the Ministry

of Education on March 27th. The decision is a boost toJapans biomedical industry and to an extent overcomes

widespread concern, both nationally and globally, about

the ethics of stem cell research (see box).

The approval was granted to a specific proposal made

by Norio Nakatsuji, a professor at Kyoto Universitys

Institute for Frontier Medical Sciences. He intends to

use surplus frozen embryos produced by in-vitro ferti-

lization to generate stem cells and distribute them free

of charge to medical researchers with approval to use

them. The first cells should be ready by spring 2003.

His team has already accumulated basic data and ex-

perience by producing embryonic stem cells of mon-

keys and mice. The basement of their institute has been

converted to a clean room for cell production. A new,

high-security research center is to open soon. Two

hospitals have already agreed to provide embryos, al-

though it is unclear how many will be needed.

The expert committee has also received two applica-

tions for research using stem cells one by Kyoto

Universitys Prof Kazuwa Nakao to produce bloodvessels; and one by Shinshu Universitys Prof

Katsunori Sasaki to generate heart and liver cells. Both

are prepared to use imported stem cells but say do-

mestically-produced cells would widen their choice, as

all cells vary slightly.

Japan

ATAGLANCEFibrinogen and Hepatitis C scandal

1977 Fibrinogen products banned by the US FDA

1979 Japanese health ministry official notes the

FDA decision in a report, but no action taken

1987 Health ministry finally orders Green Cross torecall its fibrinogen products

Fibrinogen products were used on about 283,000

patients in Japan after 1980, and about 10,000 indi-

viduals are believed to have been infected with hepa-

titis C.

ATAGLANCEThe stem cell debate

The use of embryonic stem cells is controversial be-

cause extracting the cells kills a living human em-bryo. In the US, President Bush last summer de-

cided that federal funding would be permitted only

for stem cell cultures that already existed and were

made from embryos that were to be discarded by

fertility clinics. The aim was to prevent further kill-

ing for research purposes of other human embryos.


3/18




Hospitals to clamp down after run of

fatal mistakes

Hospitals in Japan will be ordered to adopt safeguards

to cut down on fatal mistakes, according to a health

ministry directive that could be implemented in Octo-ber. If hospitals fail to comply, the government could

withhold some of their national health insurance pay-

ments. The move follows a series of mistakes by medi-

cal professionals leading to the deaths of patients, al-

though in many cases the health ministry itself has been

accused of laxness and negligence.

The basic safety guidelines are not new they are

already in place at the 80 hospitals affiliated with medi-

cal colleges, which were directed to implement the

measures by spring 2000. Another four special func-

tion hospitals have already implemented the require-

ments. However, under the new program, the Minis-

try of Health, Labor and Welfare will direct these

medical colleges and all 28,000 hospitals in Japan to

adopt an extended set of guidelines (see box).

Potential fines

Ministry officials say they hope the new requirements

will force the entire hospital to check and prevent ac-

cidents. In the past, medical errors have been dealt

with only at a departmental level.

Inspectors will visit the hospital to check that the di-

rectives are being met and that sufficient personnel

are employed to enable this. If the guidelines are being

infringed, ministry officials will be able to penalize the

hospitals by withholding payments from the national

health insurance program. Hospitals receive 8,000-

12,000 (US$60-90) daily from the health insurance

program for each inpatient. About 100 (US$0.75)

would be deducted per payment as a penalty.

Private protection

Private hospitals are to some extent shielded from the

changes. At present, only public hospitals are required

to file a report to the health ministry following a medi-

cal accident. That will not change under the new rules.

Lung cancer deaths up sharply but

other cancers drop

Lung cancer deaths rocketed in Japan from 1975-2000,

according to health ministry statistics. However, over-

all cancer deaths for men are down for the first time ina quarter of a century. The figures, released every

five years, show that the lung cancer death rate is up

65% for men, while in women it has risen 48%. Men

also saw a rise in deaths from esophageal, colon and

liver cancer. For women, the figures worsened for

colon, pancreatic and breast cancer. Suicide rates for

men rose, while those for women dropped.

Japan

ATAGLANCEProposed safety guidelines for hospitals

Hospitals must:

Write accident prevention guidelines to ensure thatmore than one medical caregiver confirms that

blood to be transfused into a patient is of the

proper type;

Set up internal reporting systems to study past

accidents and close calls to prevent recurrences;

Set up safety committees drawn from members

of various hospital departments; and

Implement training sessions for hospital staff to

heighten awareness of accident prevention mea-

sures.

Note: Japan has approximately 28,000 hospitals

Source: Japanese Ministry of Health, Labor and Welfare

ATAGLANCEDeath rates from lung cancer in Japan

(deaths per 100,000 people)

1975 2000 ChangeLung cancer - men 28.1 46.3 64.8%

Lung cancer - women 8.3 12.3 48.2%

Source: Japanese Ministry of Health, Labor and Welfare


4/18




Ministry to abandon repeat

tuberculosis shots

The health ministry is to scrap repeat inoculations for

tuberculosis, instead requiring children to have just a

single injection. The ministry says repeat jabs are un-necessary and a single shot in early childhood is suffi-

cient.

Currently, children are given tuberculin tests at each

of three stages at age 4 or younger, in the first

grade and in the first year of junior high school. Au-

thorities are required by law to inject them with the

BCG vaccine, which is made from a weakened strain

of the TB bacillus, if they do not test positive for past

exposure to the bacillus. A child can receive up to five

shots under the system.

Japan lags behind

The proposed new rules will aim to ensure that infants

receive an inoculation and that children are brought in

for checkups at 18 months and at three years of age.

The World Health Organization said in 1995 there was

no proof that repeat injections of BCG had any posi-

tive effect, and recommended against the practice.

Japanese doctors had continued to insist that multiple

shots are necessary but their case has been under-mined by South Korea and Hong Kong, which abol-

ished repeat injections in 1997 and 2000 respectively

without any adverse consequences.

X-ray recommendation

The health ministry report also suggests that people

starting at new schools or workplaces should receive

chest X-rays, which can detect early signs of tubercu-

losis, between the ages of 15 and 39. Those aged 40

or over and anyone who comes into contact with TB

sufferers regularly should be X-rayed annually.

However, there is resistance to this proposal. About

25 million people receive chest X-rays each year, but

the method rarely finds new cases of tuberculosis and

there are concerns that the exposure to radiation may

be more of a risk than undetected TB.

Daiichi to work with whisky-maker

on Alzheimers

Daiichi Pharmaceutical says it will co-operate with

Suntory, a whisky producer which is moving into the

medical field, to develop a new drug to treat Alzheim-ers Disease.

The product, memantine hydrochloride, was developed

by German firm Merz and licensed to Suntory, which

has initiated Phase II trials in Japan for moderate to

severe Alzheimers. The agreement with Daiichi is to

develop a treatment for mild to moderate Alzheimers.

Suntory will apply for manufacturing approval while

Daiichi will take care of sales and marketing.

The NMDA touch

Memantine acts as an N-methyl-D-aspartate (NMDA)

receptor antagonist that blocks excessive glutamate.

Daiichi says that extensive preclinical and clinical stud-

ies suggest that it can slow the progression of the dis-

ease by protecting neurons from over stimulation by

glutamate. Most Alzheimers drugs in Japan are ace-

tylcholine esterase inhibitors.

Merz is also developing memantine in Europe and the

US via licensees. In February this year, the EU com-

mission received a recommendation from the Com-mittee of Proprietary Medicinal Products (CPMP) to

approve memantine for the treatment of moderately

severe to severe Alzheimers disease and the drug is

expected to be launched during the second half of this

year.

Japan

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Japan

JAPANINBRIEF

Accused settle and extend CJD compensationThe government, manufacturer B Braun Melsungen

and importer Nihon BSS have finally agreed to com-pensate all plaintiffs in the dura mater infection scan-

dal. The court had already ruled in favor of 20 plain-

tiffs who contracted Creutzfeld-Jakob Disease through

contaminated dura mater transplants, awarding them

1.16 billion (US$8.75 million). Another 21 plaintiffs

were excluded because they joined the lawsuit too late.

However, the defendants say they will offer the courts

recommended compensation to all parties. The case

has taken five years and four months to settle. Signing

the settlement document, health minister Chikara

Sakaguchi expressed his apologies the first verbal

apology given by the government over the matter.

Takeda sets up in IrelandTakeda Chemical is to build a Euro 80 million (US$70

million) bulk pharmaceutical plant in Ireland. The plant

will be its third in Europe but is the first to manufac-

ture bulk drugs outside Japan. The site will be near the

Irish capital, Dublin. The move is part of Takedas strat-

egy to target the European and US markets in the face

of stagnating demand at home.

Konica sets up medical unitKonica, Japans second-largest photographic film

maker, is to create a separate business unit for its

medical operations. The company, raising its profit

outlook on March 14th, said it is diversifying away from

camera film and into specialty films for liquid crystal

displays and medical equipment. It is therefore restruc-

turing into four business units: consumer imaging, medi-

cal and graphics, office documents and optical tech-

nology. The structure will take effect from March 2003.

Otsuka Pharma and Snow Brand join upOtsuka Pharmaceutical and Snow Brand Milk Prod-

ucts are to form a joint venture in the field of clinical

nutrition. The company will be held 60% by Otsuka,

which will also provide the president. The companies

already have an alliance in the clinical nutrition field

and have produced two enteral nutritional agents.

Stock companies ousted from medical

reforms

The Japanese cabinet was expected to adopt a re-

vised three-year deregulation plan on March 29th, as

Asian Medical Industry Newswent to press, aimingfor more competition in child and nursing care among

other sectors. However, controversial proposals to al-

low stock companies to run medical institutions will

not make the cut.

The government is still keen to attract private sector

involvement in medical service provision, but Liberal

Democrat party members were strongly opposed to

allowing stock companies to take full control of hospi-

tals. Lawmakers felt that financially weaker hospitals

would see a drop in the quality of healthcare provision

as private owners sought to balance the books.

The deregulation plan is a revised version of a three-

year program originally adopted in March 2001. It adds

several priority areas, such as agriculture, energy and

finance, on top of the existing six priority areas medi-

cal services, elderly and child care, employment, edu-

cation, environment and the urban revitalization.

Yamanouchi seals three-year

genomics deal

Yamanouchi Pharmaceutical has signed a three-year

collaborative research agreement with US bioventure

firm Metabolex for the development of genomic drugs.

The two companies aim to develop world-class treat-

ments for type 2 diabetes, insulin-resistant diabetes,

impaired glucose tolerance and obesity, while attempt-

ing to shorten the development period for such drugs.

The companies will use Metabolex database of genes

related to the development and progression of insulin-

resistant diabetes and obesity to identify and validatedrugs suitable against the illnesses. The two compa-

nies will verify disease-related functions of selected

targets using animal models and a proprietary gene

function assessment system, and Yamanouchi will ini-

tiate screening and identification of compounds that

work with the selected targets.


6/18




Japan

Stock Core Price () Price change since Mkt Cap

Company Code Exchange business March 29 Issue 9 1/1/02 1/1/01 (US$mill)

Share price movements ranked by performance since Jan 1st

Ims HEALIms HEALIms HEALIms HEALIms HEALTH ESTIMTH ESTIMTH ESTIMTH ESTIMTH ESTIMAAAAATES THATES THATES THATES THATES THAT THE JapT THE JapT THE JapT THE JapT THE Japanese Panese Panese Panese Panese PHARMHARMHARMHARMHARMA MA MA MA MA MARKET INARKET INARKET INARKET INARKET IN

2002 WILL BE WORTH US$46 BILLION2002 WILL BE WORTH US$46 BILLION2002 WILL BE WORTH US$46 BILLION2002 WILL BE WORTH US$46 BILLION2002 WILL BE WORTH US$46 BILLION

TTTTTake a sliake a sliake a sliake a sliake a slice with Ace with Ace with Ace with Ace with Asian medsian medsian medsian medsian mediiiiical industrcal industrcal industrcal industrcal industry ney ney ney ney newswswswswswwwwwwwwwwwwwww.pr.pr.pr.pr.proooooooooof100.cf100.cf100.cf100.cf100.cooooommmmm

Toyama Chemical 4518 Tokyo Pharmaceuticals 530 -11.2% 29.3% 28.3% 600Tanabe Seiyaku 4508 Tokyo Pharmaceuticals 1,230 6.0% 5.3% 28.1% 2,461

Shimadzu 7701 Tokyo Medical devices 320 -3.9% 5.3% -16.4% 645

Azwell 9825 Osaka Wholesale 462 8.2% 5.0% -11.2% 314

SSP 4537 Tokyo Pharmaceuticals 962 -2.5% 1.8% 5.6% 882

Kaken Pharma 4521 Tokyo Pharmaceuticals 711 -4.4% -0.4% 12.3% 507

Ono Pharma 4528 Tokyo Pharmaceuticals 4,010 2.8% -1.0% -8.9% 3,717

Mochida Pharma 4534 Tokyo Pharmaceuticals 757 -4.5% -1.0% 7.7% 826

Suzuken 9987 Tokyo Wholesale 2,040 5.2% -1.4% -32.0% 1,197

Terumo Corp 4543 Tokyo Pharmaceuticals 1,660 -6.7% -2.2% -33.6% 2,643

Santen Pharma 4536 Tokyo Pharmaceuticals 1,452 -5.5% -2.6% -35.5% 1,016

Vital-Net (Sun-S) 9916 Tokyo Wholesale 725 -6.0% -3.3% -14.7% 229

Eisai 4523 Tokyo Pharmaceuticals 3,150 -3.4% -3.4% -21.3% 7,048

Chugai Pharma 4519 Tokyo Pharmaceuticals 1,456 -4.2% -4.1% -23.4% 2,770

Daiichi Pharma 4505 Tokyo Pharmaceuticals 2,415 -5.3% -5.3% -29.0% 5,223

Taisho Pharma 4535 Tokyo Pharmaceuticals 1,946 -5.1% -5.5% -37.0% 5,006

Dainippon Pharma 4506 Tokyo Pharmaceuticals 1,245 -5.8% -6.4% -34.1% 1,581

Kuraya Sanseido 7459 Tokyo Wholesale 521 -6.1% -6.5% -43.0% 538

Fujisawa Pharma 4511 Tokyo Pharmaceuticals 2,810 -9.9% -7.0% -25.7% 6,966

Yamanouchi Pharma 4503 Tokyo Pharmaceuticals 3,210 -10.8% -7.2% -35.0% 8,753

Hitachi Medical 6910 Tokyo Medical devices 1,096 -1.3% -8.3% -6.3% 327

Tsumura 4540 Tokyo Herbal medicine 410 -9.7% -9.9% 30.2% 217

Shionogi 4507 Tokyo Pharmaceuticals 1,990 -2.2% -11.2% -14.6% 5,232

Takeda Chemical 4502 Tokyo Pharmaceuticals 5,220 -4.7% -12.0% -22.8% 34,779

Mitsubishi Pharma 4509 Tokyo Pharmaceuticals 1,296 -15.3% -12.3% 44.0% 2,688

Olympus Optical 7733 Tokyo Medical devices 1,650 -0.7% -12.5% -16.5% 3,295

Sankyo 4501 Tokyo Pharmaceuticals 1,941 -1.7% -13.5% -29.2% 6,586

Banyu Pharma 4515 Tokyo Pharmaceuticals 1,665 -7.0% -14.6% -35.6% 3,316

Hisamitsu Pharma 4530 Tokyo Pharmaceuticals 1,501 0.3% -16.6% -24.3% 1,151


7/18




ChinaThe future is technology

Newer areas the company is investigating include

telemedicine and biomedicine. In December 2000, the

firm bought 38% of Biolight, a maker of colposcopes

and patient monitors. In July 2001, SIIC purchased 11%

of E-COM Technology, which produces X-ray imaging,

storage and transmission systems.

On the research front, SIIC is developing a range of

new products, including: Ipraflavone for osteoporosis;

S-PPM for childhood asthma; B-TLS for liver disease;

and Anntiflu for treatment of influenza.

HIFU knife finds its first overseas

home in watershed export

The HIFU knife, an ultrasound knife developed and

manufactured in China, has been exported to its first

overseas buyer, in the UK. The High Intensity Focused

Ultrasound knife has been sold to the Churchill Hospi-

tal at Oxford University.

It is the first time that large medical equipment wholly

developed and manufactured in China has been ex-

ported to a foreign country, according to the People

Daily. The knife was developed by Chongqing Haifu

(HIFU) Technology and used for the first time in asurgical procedure in Chongqing in 1997.

The next overseas buyer has already been lined up

in Singapore and 15 hospitals within China have

purchased the HIFU knife.

SIIC subsidiary listing masks stable

profits in 2001

SIIC Medical Technology says profits trebled in the

year ended December 2001. However, the results in-

clude a one-off gain from the listing on the Shanghaistockmarket of a subsidiary excluding this, net profit

was rather more modest.

Total sales at SIIC Medtech Shanghai-based but

listed in Hong Kong came in at HK$723.9 million

(US$92.8 million), up 36% compared with the previ-

ous year. Net profit was HK$232.7 million

(US$29.8 million), but that included HK$155 million

(US$19.9 million) from the March 2001 listing of

Shanghai Jahwa, a producer of skin care products and

mosquito repellent.

SIIC says profit was held back by the end of a tax

holiday for one of its major subsidiaries, Chia Tai

Qingchunbao Pharmaceutical, whose tax rate jumped

from 12% to 24%. However, SIIC also cites a de-

pressed local and global economy, government reforms

and the entry of overseas firms into the domestic mar-

ket in the run-up to entry to the World Trade Organi-

zation.

Tender system to hurt prices

A major pricing concern, according to SIIC chairman

Lu Ming Fang, is the introduction by the government

of a centralized system of purchasing by tender. Lu

expects prices of pharmaceuticals to fall this year as a

result. However, non-pharmaceutical sales are not cov-

ered by the system and the company has therefore

increased the proportion of sales attributable to medi-

cal equipment to 36%, up from 15%.

The company is also increasing its focus on traditional

Chinese medicine (TCM) and has established a com-

mittee of 13 local and overseas experts to identify prod-uct and business opportunities. One of the first prod-

ucts being pushed is Ningxia Lycium, a wolfberry de-

rivative sold as an antioxidant. SIIC also bought a 24%

stake in TCM manufacturer Hangzhou Hu Xing Yu

Tang State Medicine at the end of last year.

ATAGLANCESIIC Medical Technology full year results

(US$mill) Full year ended

Dec 2001 Dec 2000 ChangeSales (HK$) 92.8 68.4 +35.6%

Net profit (HK$) 29.8 9.3 +221.8%

Net profit excl listing

of Shanghai Jahwa 9.9 9.3 +6.5%


8/18




High leukemia drug prices costing

lives, say doctors

Physicians in China have warned that leukemia drugs

are so expensive that 92% of children with the disease

are not receiving adequate treatment. Speaking at theInternational Conference for the Cure of Childhood

Cancer in China, held in Shanghai this month, doctors

said that means almost 37,000 children are at risk every

year.

Treatment for leukemia in China costs around

Yuan 200,000 (US$24,150). That makes it unaffordable

for most people in rural areas, where medical staff

estimate that almost half of child sufferers dont com-

plete their treatment and half receive none at all. Much

of the blame is put on drug prices, although staff admit

that lack of access to medical technology or the skills

to use it is also a concern.

Cosmetic surgery crackdown to take

place this year

The Chinese government will clamp down on poor

quality cosmetic surgeries this year, after rising com-

plaints from customers. The one million or so beauty

parlors in the country often employ untrained staff inan effort to cut costs and meet demand.

The Ministry of Health has formulated new regula-

tions on cosmetic surgery that will come into effect on

May 1st. All places that want to offer cosmetic sur-

gery must have official licences and meet specified

Chinastandards for medical qualifications and equipment. The

ministrys position is that surgery such as breast im-

plants is different from common beauty care and should

only be done in clinics or hospitals however, other

facilities will be allowed to offer surgery as long as

they meet the minimum standards.

Wealth no good without beauty

Rising disposable incomes in China have led to a de-

mand for cosmetic surgery which has far outpaced

supply. Beijing has just four centers to serve ten mil-

lion residents. The plastic surgery clinic at Peking

Union Medical College receives more than 200 visi-

tors a day some ten times more than in 1998.

CHINAINBRIEF

Dubious drugs adverts to be tackled in 2002The State Administration for Industry and Commerce

says it will crack down on poor quality and misleading

pharmaceutical advertising this year, after a survey

showing that the number of misleading drug adverts

rose sharply in 2001. The Administration says it han-

dled 15,409 cases of misleading drug adverts last year,

up 10% on 2000. A new law was passed in December

giving the Administration the power to punish compa-

nies found to have misled the public.

Medical malpractice comes to the foreLegislators are urging hospitals to buy medical mal-

practice insurance for medical staff as law suits by

patients and relatives increase. Members of the Ninth

National Peoples Congress have suggested that an

insurance system would help both patients and doc-

tors, as it would encourage the latter to undertake riskier

ATAGLANCEWhen beauty surgery goes wrong

The government estimates that around 200,000 Chi-

nese citizens have been disfigured by poor quality

cosmetic surgery in the last ten years. There are

around one million beauty salons in the country.ATAGLANCE

Childhood leukemia in China

Leukemia is estimated to affect 40,000 children an-

nually in China. Doctors estimate that 92% of these

receive either incomplete treatment or no treatment

at all. The cure rate for childhood leukemia in west-

ern countries is approximately 80%, a level that someparts of China achieve but which most do not.


9/18




procedures which could save lives with worrying about

legal action. The insurance industry, unsurprisingly,

backs the idea, but some doctors say the procedure

for assessing medical accidents should first be over-

hauled. Judgement is currently passed largely by doc-

tors, who are often seen as biased.

Nanyang joins national push for TCMThe city government of Nanyang in Henan Province

has launched a plan to turn traditional Chinese medi-

cine (TCM) into a modern industry. The city will es-

tablish a chain system integrating TCM education with

research, planting, processing, marketing and clinical

treatments, according to Party Secretary Ma Wangling.

The move is in line with a national initiative to promote

TCM by opening overseas clinics and encouraging

academic and commercial exchanges.

Asian biotech summit to be held in ChinaThe first Asian Biotech Summit will be held in Beijing

in June this year. Co-organized by the Pacific Rim

Forum and the China Council for the Promotion of In-ternational Trade, the summit will have about 500 par-

ticipants from the regions industries, institutions and

government bodies. Alan Carroll, executive chairman

of the Pacific Rim Forum, said the completion of the

sequencing of the human genome in early 2001 marked

a major watershed in the emergence of life science as

an industry. He expects a biotech boom in China as

the country has plenty of young scientists and the gov-

ernment is eager to develop science and technology.

China queues to sleepSome 10,000 residents of Beijing, Shanghai, Guangzhouand Hangzhou have signed up to take part in a world-

wide survey on sleep patterns. The Sleep Epidemiol-

ogy Survey,sponsored by the International Founda-

tion for Mental Health and Neuro-Science, will moni-

tor 50,000 people in around 20 countries. This is the

first time China has taken part in such a study, and the

response has been enthusiastic hundreds of people

in Shanghai queued to fill in the application forms. The

results will be published in the third quarter of this year.

Shenzhen cornea list growingMore than 100 people receive cornea transplants in

Shenzhen each year, but the waiting list is still increas-

ing by 60 people annually, according to a report in the

Shenzhen Commercial Daily. The newspaper says

that eye disease is common in the city because of poor

eye protection awareness. However, very few people

donate their eyes after death since June 1999, only14 people have donated their corneas. Sixty others have

registered to do so.

Ten-year wait for TCM book finally overChinas first comprehensive bibliography of traditional

Chinese medicine and pharmacology has been com-

pleted. The Dictionary of Traditional Chinese Medical

Books and Records, published by the Shanghai Sci-

ence and Technology Press, lists more than 23,000

books and records on traditional Chinese medicine and

pharmacology written from the pre-Qin Dynasty (2,000

years ago) to the end of the 20th century. The five-million-character dictionary, which lists both domestic

books and rare ones kept overseas, took more than

300 medical experts over ten years to compile. Ex-

perts say it will be invaluable to the research and

development of traditional Chinese medicine.

China

ATAGLANCEThe home of traditional Chinese medicine

Nanyang was the home of Zhang Zhongjing, the East-

ern Han Dynasty (AD 25-220) scholar who is con-

sidered the father of traditional Chinese medicine.

ATAGLANCEInsomnia in China and around the world

The China Medical Association estimates that around

300 million Chinese adults have sleep problems,

mostly in economically developed areas. A survey in

Shanghai suggests that the number of insomnia pa-

tients increased 20% in the first two months of this

year, compared with the same period last year. Half

of those sufferers were aged 31-51 years.

The World Health Organization (WHO) estimates

sleep disorders affect 27% of the world population.


10/18




Parkway relaunches drive to buy up

private clinics

Singaporean healthcare provider Parkway Holdings is

to attempt another acquisition spree to grow its clinic

business three years after the collapse of its planto set up 40 clinics with Guardian Pharmacy, accord-

ing to theBusiness Times. The newspaper says about

50 general practitioner (GP) clinics were approached

five months ago by negotiator OCBC to sell their prac-

tices to a well-established locally listed healthcare

provider.

Parkway is reported to have been prepared to pay eight

to nine times the annual revenue of the clinics. How-

ever, it was payable only in stock options one rea-

son that around half declined. There were also con-

cerns about becoming an employee of Parkway rather

than remaining independent.

Which came first?

The company declined to comment on the report, but

a source says the GPs themselves probably formed a

group and approached Parkway about a buyout. The

source also suggests that while eight to nine times earn-

ings would be acceptable for a stock buyout, the firm

would only pay around five times in a cash deal.

Analysts believe Parkway is interested in diversifying

its healthcare strategy and is therefore still in talks.

The company has 19 GP clinics branded as Shenton

including eight in the central business district in

a sector it believes is ripe for expansion.

Hospital squeeze

Meanwhile, its three hospitals in Singapore Mount

Elizabeth, Gleneagles and East Shore are seeing

profit margins squeezed because of health reforms and

the weak economy. The three accounted for 62% ofthe groups revenues of S$354.5 million (US$192.7 mil-

lion) for the year ended December 2001. Operating

margins at the hospitals slipped from 32.4% in 2000 to

31.2% last year.

In March 1999, Parkway tried to boost its share of the

GP market by tying up with Guardian Pharmacy. The

goal then was to set up 40 GP clinics under the Shenton

name over five years, but only one clinic has been es-

tablished. It is a tough market: rival provider Raffles

Medical has 60 clinics in Singapore; government poly-

clinics have started night operations; and there are

hundreds of neighbourhood GPs.

Raffles slides into first ever loss on

property provisions

Singapores Raffles Medical Group (RMG) has re-

ported a S$8.7 million (US$4.7 million) loss for the year

ended December 31st the first loss in its 26-year

history. Raffles Hospital, in its first year of operation,

contributed about S$27 million (US$14.7 million) to

sales and helped boost turnover by 22%, but also con-

tributed S$5.7 million (US$3.1 million) to the overall

loss.

RMGs strategy of using its 65 clinics to refer patients

to its hospital seems to have worked, with about a third

of the hospitals revenue coming from such referrals.

The occupancy rate of the 100 operational beds was

40%; 200 beds are expected to be in operation by the

end of the year. The capacity is 380 beds. Chairman

Loo Choon Yong says beds will be opened according

to demand.

Exceptional losses and property provisions dragged

RMGs performance into the red. It wrote off

S$700,000 (US$380,000) in healthcare IT firm Dr

World and S$1 million (US$543 million) for some of its

clinic properties. The company expects things to im-

prove this year and says it is looking for acquisitions

and investments. Targets include a medical centre or

a chain of clinics.

Southeast Asia

ATAGLANCE

Raffles Medical Group full year results

(US$mill) Full year endedDec 2001 Dec 2000 Change

Sales (HK$) 41.7 34.1 +22.1%

Net profit (HK$) (4.7) 2.9 n/a


11/18




Southeast Asia

Thailand launches ultra-cheap HIV

cocktail

Thailand will this month start marketing what may be

the worlds cheapest cocktail of anti-HIV drugs. The

Government Pharmaceutical Organisation (GPO) hasmanufactured the treatment, GPO-Vir, which will sell

for just US$0.45 per pill, or US$27 per month. The

current average cost of anti-HIV drugs is around

US$114 per month.

GPO-Vir is a combination of the anti-retrovirals

nevirapine (Boehringer Ingelheim), stavudine (Bristol-

Myers Squibb) and lamivudine (GlaxoSmithKline),

which slow the replication of the virus and so improve

patient health. GPO, which will hold a ten-year patent

on the pill, says it has already produced 120,000 pills.

The manufacturers of the three individual drugs do not

hold patents in Thailand.

Market gap

The move makes Thailand the second country, after

India (where it was produced by Cipla), to make a

generic form of the cocktail. It is significant because

under the World Trade Organizations TRIPS agree-

ment, revised in November, other developing countries

may be able to import the pill from Thailand.

TRIPS allows any country suffering a health emer-

gency to issue a compulsory license allowing it to pro-

duce or import cheap generic drugs. The November

declaration mentioned HIV/AIDS as a disease which

could fall into the category of health emergency (see

Issue 3, pp 2-3).

Lobby groups for cheaper HIV medicines in the de-

veloping world have welcomed the move. Medecins

Sans Frontieres also noted that the three-drug cocktail

has never been commercially produced in the west,

despite a proven efficacy, because the three patentholders could not agree how to divide the profits.

SOUTHEASTASIAINBRIEF

Pfizer joins in for record fake Viagra haulThai police have seized 100,000 fake Viagra pills in

the biggest haul of its kind in the country. US multina-tional Pfizer, Viagras manufacturer, helped with the

investigation and actually accompanied police on the

three raids on the outskirts of Bangkok. The gang

three Turks and one Thai had taken orders for the

erectile dysfunction drug via the Internet, which the

police used to trace them. The fake pills were a com-

bination of diluted genuine Viagra and tapioca starch.

They had a production cost of less than 20 baht

(US$0.46) per pill, but were sold for 20 times that.

Indonesia stresses plans for state drug firmsIndonesias State Enterprises Minister has reiterated

the governments intention to accelerate the sale of

state assets this year, including two nationalized drug

firms. Speaking at an investment conference in Hong

Kong, Laksamana Sukardi noted that the governments

policy is to speed the sale of stakes in highly-com-

petitive industries. That includes Indonesias largest

drugs firm, Indofarma, in which a minority stake is to

be sold contrary to earlier reports that 51% would

be disposed of (see Issue 8, p 10).Laksamana told

reporters that Kimia Farma would be disposed of byyear end. Indonesia has the worlds fourth-biggest

population, with 200 million people.

Siemens ties up with Medical OnlineMalaysias Medical Online and Siemens Malaysia have

signed a memorandum of understanding to improve

access to the countrys trauma care system. The deal

use Siemens technology and expertize to build on Medi-

cal Onlines RM100 million (US$26.3 million) telehealth

project. The service is expected to be available by the

end of the year.

ATAGLANCEInjury and trauma kill around 6,000 Malaysians every

year, with two-thirds of fatalities aged 12-40 years.

ATAGLANCEThailand is estimated by the United Nations to have

700,000 sufferers of HIV/AIDS.


12/18




Medison plans full recovery within

twelve months

Medison, Koreas highest-profile and former flagship

medical equipment manufacturer, says it will be back

on its feet within a year after being approved for bank-ruptcy protection. The firm, which collapsed in Janu-

ary with debts of around US$300 million (see Issue 7,

pp 11-12), was granted court receivership by the

Chuncheon District Court on March 21st.

Maintaining value

The decision was expected, as even following a steep

fall in its share price, Medison is still valued at around

Won 256 billion (US$194 million), substantially above

its asset value of Won 183 billion (US$138 million).

The company has a 63% share of the Won 100 billion

(US$76 million) domestic ultrasound market and claims

to be the world leader for gynecological ultrasound,

with a 30% share of the global market.

Medison also accounts for half of Koreas exports of

high-tech medical equipment including providing

most of Dutch company Philips low-end scanners

and local manufacturers have suggested this is reason

enough to protect it from full bankruptcy.

That is essentially why court receivership was so vitalfor the companys survival. Under Korean law, a court-

appointed administrator will now reorganize the firms

financial management and decision-making procedures

and decide how best to reimburse creditors. However,

the intention is where possible to maintain the firm as

an ongoing business. Most manufacturing and trading

operations continue as normal in the interim, which

leaves Medison the chance to regain its focus on its

core competency ultrasound.

Overseas talks

However, there is no doubt that the company urgently

needs fresh funds to pay off creditors and roll out new

technology, primarily a 3D ultrasound scanner planned

for the end of the year. The cash will largely come

from asset sales, although all but six of the 40 or so

non-core affiliate companies in which it so heavily in-

vested at its peak have been cut out. CEO Lee Seung-

woo says he expects to be able to rely on profits as

well and claims that all loans, including interest, will be

paid by 2011.

Lee also says he is in talks with overseas players which

could lead to strategic alliances and cash injections.

Earlier rumors had centred on a deal with Philips, Sie-

mens or General Electric, but Lee has declined to name

names. He adds that a deal with a Korean firm is not

out of the question. Medison halted its arrangements

with overseas distribution partners when it collapsed

but will now attempt to restart those.

Medison shares were suspended when it defaulted on

its debt but resumed trading on January 31st, since

when they have fallen by half.

Dong Wha puts great store by liver

cancer therapy agent

Milican Inj, a radioactive treatment for liver cancer

manufactured by Dong Wha Pharmaceutical, has been

selected as one of Koreas Ten Best New Technolo-

gies of 2001, according to the company. The award

has increased Dong Whas determination to push the

product globally and turn it in to one of its leading rev-

enue generators over the next few years.

Standing for miracle liver cancer injection, Milican

Inj is an injectable isotope a complex of 166 Hol-

mium and chitosan which radiates beta-rays to treat

cancer cells selectively. It changes to a colloidal gel in

the tumor lesion and the 166 Holmium kills the cancer

Korea

ATAGLANCEMedison financial results

(US$mill) Year endedDec 2000

Sales 156.9

Net profit (88.3)


13/18




cells. The lesion can be treated by a single intramural

injection.

Dong Wha describes the product as the worlds first

radioactive medication for liver cancer treatment and

an ideal substitute for surgery. It claims a 77.7% effi-

cacy rate and a response rate of 87.3%. Domestic

sales are forecast to reach Won 3 billion (US$2.3 mil-

lion) in 2002, even though Milican Inj will not be put

onto the market until August. Turnover is targeted at

Won 10 billion (US$7.6 million) annually by 2006.

Courting royalties

The company says the technology will also be exported

to China for liver cancer treatment and to the Eu-

ropean Union and the US for the treatment of prostate

cancer and rheumatoid arthritis. It is registered for li-cense in Korea, the US and Japan and has applica-

tions pending in Europe and China. Royalties are fore-

cast at US$50 million upfront for the technology li-

cense and US$5 million annually thereafter.

SK focuses on bioengineering as

future profit driver

SK Group, Koreas third largest business conglomer-

ate is building up investment plans for its bioengineer-

ing division, according to The Digital Chosun. Thecompany expects to expand its original investments

and accelerate its investment schedule to become the

countrys industry leader.

Sales by the bioengineering operations are reported to

have reached Won 100 billion (US$75.6 million) last

year for the first time ever, encouraging the group to

move its investment timetable up six months. SK also

plans to increase its Won 200 billion (US$151.3 mil-

lion) annual investment plan for the field.

Push for the top

The groups four bioengineering-related subsidiaries

include SK Corp and SK Chemical, involved in R&D,

and SK Pharmaceutical and Dongshin Pharmaceuti-

cal, in charge of production and marketing. SK Chemi-

cal recently launched a medical drug operation in a bid

to become one of the top ten pharmaceutical compa-

nies in the country.

SK also says that China will become the groups core

production outpost for its bio-engineering operations,

adding that it has recently decided to make investmentsin Chinese herbal medicine. The group recently started

construction of a bioengineering R&D institute in

Shanghai, investing a total of Won 10 billion

(US$7.6 million).

KOREAINBRIEF

Morning after pill hits Korea at lastDistributor Hyundai Pharm has introduced the emer-

gency contraceptive pill NorLevo to Korea. The prod-uct prevents pregnancy if taken twice in 72 hours af-

ter unprotected intercourse and is now available at phar-

macies with a doctors prescription. NorLevo is pro-

duced by HRA Pharma of France. The pill has been

the source of much debate in Korea which has de-

layed its arrival Hyundai applied for domestic sales

approval in May 2001.

National Health Service ready to cut demandThe Korean National Health Service has published

guidelines for reform which outline its plans to tighten

its administrative controls. Under new president LeeSang-yong, the NHS aims to revamp its controls to cut

down on claims for unnecessary medical treatment.

This includes a campaign to induce healthcare provid-

ers to give receipts, preferably by legislation, and a

push to boost collection of insurance fees to 100%.

ATAGLANCESIIC Medical Technology full year results

(US$mill) Full year endedMar 2001 Mar 2000 Change

Sales 95.6 104.6 -8.5%

Net profit 3.1 (5.8) n/a

Korea


14/18




Nicholas Piramal in widespread

biotech talks

Nicholas Piramal (NPIL) is reported to be talking to

Italian firm Chiesi Pharmaceutical to import curosur, a

biotech drug for premature babies, and could also bringin peg interferon, a biotech drug for cancer, by enter-

ing into a licensing and marketing deal with Roche Phar-

maceutical. NPIL already markets Roches Roferon

A, an older version of peg interferon.

The two deals are part of NPILs drive to expand its

Rs 500 million (US$10.2 million) biotech operation. It

is also involved in discussions with several other firms,

reportedly in the market for critical care medicine.

NPIL says it is not looking for equity deals, but will

focus on co-licensing for the Indian market. The com-

pany already has 50:50 joint venture with US-based

Cytran to develop new molecules for sale in India.

Medical sales reps confirm month-

long strike

The Federation of Medical and Sales Representatives

Association of India (FMRAI) says it will conduct a

month long nationwide relay strike starting April 9th.

The organization is upset about the impact of globali-

zation and has issued a list of 27 complaints.

FMRAI vice-president J S Mazumdar says the com-

plaints include drug pricing, commercialization of the

health care system, the growing dependence on im-

ports, large-scale black marketing by pharmaceutical

companies for tax evasion and the entry of spurious

medicines into the market.

The strike will take the form of a continuous series of

three-day strikes by medical sales representatives in

individual states. The disruption will last one month in

total. The FMRAI will also support a strike by publicsector employees on April 2nd.

Mazumdar alleges that some companies sell up to 25%

of their medicines worth a total of Rs 20 billion

(US$410 million) on the black market to evade taxes.

He also accuses politicians and police of being involved.

Cipla only Asian company to make

WHO list of AIDS drug suppliers

Cipla has become the only Asian drug manufacturer

to be listed by the World Health Organization as a rec-

ommended provider of HIV/AIDS drugs for poor coun-tries. The list (see page 15)was published on March

20th as part of a project by the WHO, the UN,

UNAIDS, Unicef and the World Bank.

The idea of the move is that international research-

based companies and alternative generic suppliers can

be assessed to the same standards, thereby helping

governments and international agencies to procure

quality products at competitive prices.

The 40 recommended drugs include 11 antiretrovirals

and five drugs for opportunistic infections, from eight

branded and generic manufacturers. Ten of the drugs

come from Cipla, which produces nevirapine,

zidovudine (AZT), and lamivudine (3TC) one of

the most common cocktails of AIDS drugs.

Far from perfect

The list, which will be updated regularly, is not meant

to be definitive, and indeed holes have already been

picked in it. Although Cipla was the only Asian firm

mentioned, HIV/AIDS drugs are also manufacturedby companies such as Aurobindo Pharma, Ranbaxy

Laboratories and Hetero. One issue is that these com-

panies manufacture products which have no equiva-

lent in the west.

The list also includes Ciplas generic version of aciclovir

cream, even though the WHOs own guidelines for

the management of sexually transmitted infections state

that topical therapy [of herpes] with aciclovir pro-

duces only minimal shortening of the duration of symp-

tomatic episodes and is not recommended.

Although not mentioned as an intended aim, commen-

tators have also suggested that the list may intensify

price pressure on multinational drug manufacturers.

These companies are already facing calls from suf-

ferers and politicians to drop the prices of products to

levels which poor countries can more easily afford.

India


15/18




India

ATAGLANCEWHO list of pre-qualified HIV/AIDS drugs

Name Strength Form Supplier Manufacturing site

Abacavir 300mg Tablet GlaxoSmithKline GSK, Ware, Hertfordshire, UKAbacavir 20mg/ml Oral solution GlaxoSmithKline GSK, Speke, Liverpool, UK

Aciclovir 5% Cream Cipla Patalganga, India

Amprenavir 15mg/ml Oral solution GlaxoSmithKline GSK, Speke, Liverpool, UK

Amprenavir 50/150mg Capsule GlaxoSmithKline RP Scherer, Beinheim, France

Ciprofloxacin 750mg Tablet Laboratorios Cinfa Navara, Spain

Ciprofloxacin 500mg Tablet Laboratorios Cinfa Navara, Spain

Ciprofloxacin 250mg Tablet Laboratorios Cinfa. Navara, Spain

Ciprofloxacin 100mg Tablet Cipla Kurkumbh, India




Didanosine 25mg Tablet Bristol-Myers Squibb Meymac, France

Didanosine 50mg Tablet Bristol-Myers Squibb Meymac, FranceDidanosine 100mg Tablet Bristol-Myers Squibb Meymac, France



Lamivudine 50mg/5 Solution Cipla Vikhroli, India

Lamivudine 150mg Tablet GlaxoSmithKline GSK, Ware, Hertfordshire, UK

Lamivudine 10mg/ml Oral Solution GlaxoSmithKline GSK, Speke, Liverpool, UK

Lamivudine/Zidovudine 150/300mg Tablet GlaxoSmithKline GSK, Ware, Hertfordshire, UK

Lamivudine/Zidovudine/Abacavir 150/300/300mg Tablet GlaxoSmithKline GSK, Ware, Hertfordshire

Nevirapine 200mg Tablet Cipla Vikhroli, India

Ritonavir 100mg Capsule Abbott Laboratories RP Scherer, Florida, US

Beinheim, France

Ritonavir 80mg/ml Oral solution Abbott Laboratories Queensborough, Kent, UK

Ritonavir/Llopinavir 33,3mg + 133,3 Capsule Abbott Laboratories RP Scherer, Florida, USRitonavir+lopinavir 20mg + 80mg/ml Oral solution Abbott Laboratories Queensborough, Kent, UK

Saquinavir 200 mg Soft capsule Roche R.P.Scherer, Baden, Germany

Stavudine 15mg Capsule Bristol-Myers Squibb Meymac, France




Sulfadiazine 500mg Tablet Doms Recordati Parc Mecatronic, France

Vinblastine sulfate 10mg/10ml Injection Cipla Kurkumbh, India

Vincristine sulfate 1mg/ml Injection Cipla Kurkumbh, India

Zalcitabine 0.375 mg Tablet Roche Roche, New Jersey, US

Basle, Switzerland

Zalcitabine 0.75 mg Tablet Roche Roche , New Jersey, US

Zidovudine 100mg Capsule Combino Pharm Finaf 92, Gorgs y Llad,

Barabara del Valles or Medea,

Santa Carolina, Barcelona

Zidovudine 50mg/5 Solution Cipla Vikhroli, India

Zidovudine 10mg/ml Infusion GlaxoSmithKline Catalytica, Greenville, US

Zidovudine 50mg/5ml Oral solution GlaxoSmithKline Wellcome, Dartford, Kent, UK


16/18




India

Lack of patent law a hindrance to

foreign investment, says US

India needs to introduce a proper product patent law

consistent with WTO regulations if it wants to encour-

age serious levels of foreign investment, according toa representative of the US. Speaking at a seminar on

March 15th, the US Ambassador to India, RD

Blackwill, noted that delays in passing legislation on

patents are to the detriment of scientists involved in

original research

Pilfered IP

Blackwill pointed out that Indian intellectual capital

produced by scientists, research institutes and leading

pharmaceutical and biotechnology firms remains sti-

fled, underutilized or could be pilfered. He said the

US would like to assist India in processing the esti-

mated 30,000 pending patent applications.

He also hoped that increased spending on research

will result in a boost to the pace of study and innova-

tion in Indias public-sector laboratories. He urged tech-

nology experts to identify and evaluate inventions in

the laboratory and file a timely patent.

INDIAINBRIEF

Ranbaxy to boost Asian researchRanbaxy Laboratories is to set up 11 new research

centers across India, doubling its current research base,

and move into China for the first time. The expansion

aims to increase the number of facilities available for

clinical trials in the worlds two most-populous coun-

tries. It can be also seen as an attempt to establish

itself in China as that market opens up. Rival Dr

Reddys is already reported to be in talks with the Ex-

port Import Bank of India about financing for a Chi-

nese expansion (see Issue 4, p 8).

Ranbaxys Midazolam approved in USRanbaxy Pharmaceutical, the US subsidiary of the

Ranbaxy Laboratories, has received FDA approval to

market its Midazolam Hydrochloride syrup. The com-

pany says the product has been deemed equivalent to

Roches Versed Syrup and will be launched before May

15th. Midazolam Syrup is indicated for use in paediat-

ric patients for sedation, anxiolysis and amnesia under

a monitored environment.

Knoll profits on the upKnoll Pharmaceuticals has posted a net profit of

Rs 141 million (US$2.9 million) for the quarter ended

February 28th, 2002 compared to Rs 92 million

(US$1.9 million) in the quarter ended March 31st, 2001.

Income increased from Rs 838 million (US$17.2 mil-

lion) to Rs 850 million (US$17.4 million). The com-

pany has changed its accounting year end from De-

cember 31st to November 30th, so the two quarters

are not directly comparable.

Dr Reddys launches BicalutamideDr Reddys Laboratories has launched Tabi

(Bicalutamide ) for the treatment of advanced pros-

tate cancer. The company is the first to launch the

drug in India. The product will be available as a 50mg

tablet. Dr Reddys says that with a global market share

of over 50%, Bicalutamide is the worlds leading anti-

androgen therapy for the treatment of advanced pros-

tate cancer.

Ministry writes off HAL interestIndias Ministry of Chemicals and Fertilizers has de-

cided to write off all of the interest dues which have

accumulated on Hindustan Antibiotics (HAL) since the

organization was set up with a government loan in 1972.

The decision, at a cost of Rs 550 million (US$11.3 mil-

lion), allows the Ministry to push ahead with its plans

to invite private bidders for the ailing company (see

Issue 3, p 13).

Sun Pharma changes research plansSun Pharmaceuticals has dropped plans to build a re-

search and development center in Chennai, citinglogistical and convenience reasons. The company

will, however, spend Rs 400 million (US$8.2 million)

on new chemical entities and a Novel Drug Delivery

Systems research campus in Baroda. The research

will focus on three therapeutic areas but Sun declined

to identify what these would be.


17/18




Health Ministry wants animal experimentsThe Health Ministry says that current restrictions on

the use of animals in laboratories has brought medical

research in India to a standstill, and intends to push for

a more liberal policy. Health minister CPO Thakur says

he has already mentioned it to the Prime Minister and

will soon bring it up formally. The minister for animal

welfare, Maneka Gandhi, says there is no intention to

prevent valid medical experiments; however, scientists

say that obtaining the necessary permits is so cumber-

some it is barely worthwhile.

India to bar HIV sufferers?India is to reported to be considering banning foreign

sufferers of HIV/AIDS from entry to the country. The

Hong Kong-based South China Morning Post quotes

Indian Health and Family Welfare Minister CP Thakur

as saying that visitors will have to produce medicalrecords stating that they are not infected with the vi-

rus. If they are HIV-positive, they will not be allowed

to travel in the country. Testing is being justified on the

grounds that contacts with foreigners are responsible

for the sharp rise in HIV cases in India. The ministry

can pass the law without parliamentary approval.

India/Pakistan

Pakistan approves 3% price rise for

drug and suture importers

The government has agreed to allow importers and

producer of pharmaceuticals and sutures a 3% increase

on the prices of 821 medicines used for treatment ofmajor ailments. The increase comes in addition to the

15% sales tax which was added to drugs last month.

Manufacturers and importers are required to infiorm

the Ministry of Health of their retail prices.

ATAGLANCEDrugs and supplies covered by 3% price increase

General anaesthetics (five injections); anti-diabetics, in-

sulin (38 tablets, injections and syrups); antibiotics and

steroid combinations, anti-infective agents, non-steroidalanti-allergies/decongestants, miotics and anti-glaucoma

drugs (58 tablets, injections and syrups); anti-bacterial

(213 capsules, tablets, injections and syrups); analgesics,

anti-pyretic, NSAIDs and anti-gouts (38 tablets, injections

and capsules); anti-allergics (17 tablets, injections and

syrups); anti-epileptics and anti-convulsants (19 tablets,

injections and syrups); anti-infectives, amoebicides and

anti-diarrhoeals (11 tablets, injections and syrups); anti-

tuberculosis (13 capsules, tablets, injections and syrups);

anti-virals (2 tablets and suspensions); anti-fungal and

other dermatological (20 tablets, injections and syrups);

anti-malarials (11 tablets, injections and syrups); anti-mi-

graine; anti-helmintics (7 tablets, injections and syrups);anti-Parkinson (7 tablets, injections and syrups); blood

drugs affecting the anti-coagulants and antagonists (11

tablets, injections and syrups); cardiovasculars (78 cap-

sules, tablets, injections and syrups); diuretics (12 tab-

lets, injections and syrups); gastrointestinals (24 tablets,

injections and syrups); hormones and other endocrine

drugs (13 tablets, injections and syrups); muscle relax-

ants (14 tablets, injections and syrups); psychotropics

(tablets, injections and syrups); drugs acting on respira-

tory tract (16 tablets, injections and syrups); anti-spasm

and anti-cholinergics (8 tablets, injections and syrups);

anti-emetics and anti-nauseates (15 tablets, injections and

syrups); urological preparations (2 tablets); dextrose in-

fusion, electrolytes and dialysates dextrose (37 tablets,

injections and syrups); anti-neoplastic and

immunosuppresives (145 tablets, injections and syrups);

antidotes (12 tablets, injections and syrups); cerebery/

periphery disorders (8 tablets, injections and syrups);

tropical antibiotics; ligatures and sutures (88 items).

ATAGLANCEHIV was first reported in India in the late 1980s, but

is now estimated to have four million sufferers.

FREEtrial issues of


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18/18




Share price movements ranked by performance since Jan 1stStock Price (Rs) Price change since

Company Code Exchange Mar 29th Issue 9 1/1/02 1/1/01

India

Reckitt Benckiser RCKT Bombay 241 -0.6% 70.3% -8.1%Torrent Pharmaceutical TORP Bombay 215 -7.3% 57.0% 22.9%

Bal Pharma BALP Bombay 17 24.8% 55.5% 14.0%

Bayer India BAYE Bombay 1,348 -3.6% 54.1% 127.3%

Astra-IDL ASTR Bombay 364 0.3% 48.4% -7.3%

Abbott Laboratories ABBT Bombay 207 -2.1% 47.6% -22.9%

Knoll KNOL Bombay 307 1.5% 29.3% -12.2%

Lupin Laboratories LUPN Bombay 117 -3.7% 27.6% -46.8%

Ranbaxy Laboratories RANB Bombay 878 -1.5% 27.3% 30.7%

JB Chemicals JBCH Bombay 154 3.0% 27.3% 23.2%

Nicholas Piramal NICH Bombay 271 -0.3% 20.9% -24.5%Dr Reddys Laboratories REDY Bombay 1,098 2.9% 18.9% 74.5%

Wyeth Lederle WLED Bombay 255 -0.0% 18.5% -20.4%

GlaxoSmithkline GLAX Bombay 340 -4.4% 18.3% -25.2%

Novartis NOIN Bombay 246 2.2% 17.3% -53.0%

Sun Pharmaceuticals SUN Bombay 670 2.7% 16.9% 24.5%

Duphar-Interfran DUPH Bombay 135 5.4% 16.3% -60.4%

Wockhardt WCKH Bombay 557 5.6% 15.0% 30.7%

Procter & Gamble PROC Bombay 503 -0.2% 10.5% -27.7%

E Merck EMER Bombay 303 2.7% 9.7% -30.1%

Unichem Labs UNLB Bombay 200 -0.2% 8.7% 5.3%

Burroughs Wellcome BURR Bombay 183 -3.4% 6.8% -37.4%

FDC FDC Bombay 200 -2.9% 2.6% -7.0%

Shasun Chemicals SHAS Bombay 67 -1.5% 2.5% -14.9%

Bayer Diagnostics BDIL Bombay 227 -2.4% 2.4% -3.3%

Orchid Chemical ORCD Bombay 69 1.2% 2.0% -33.3%

Pfizer PFIZ Bombay 450 0.9% 1.1% -26.2%

Zydus-Cadila CADI Bombay 128 2.6% -0.3% -19.2%

Jagsonpal Pharma JGSN Bombay 127 -0.7% -2.7% -78.5%

Aventis Pharma AVPH Bombay 405 18.1% -2.7% -13.3%

Aurobindo Pharma ARBN Bombay 215 -7.2% -5.9% -56.8%

Cipla CIPL Bombay 1,018 0.3% -10.0% -26.8%

Morepen Laboratories MORL Bombay 53 -6.9% -12.3% -56.2%

Ajanta Pharm AJPH Bombay 47 0.0% -21.0% -54.9%

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asian med news_april 2002

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