PharmaTelevision - Naiyin Wang explains Shanghai Fosun Pharma's strengths and advantages over other pharma companies in China

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Video title: Naiyin Wang explains Shanghai Fosun Pharma's strengths and advantages over other pharma companies in China

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In this episode of PharmaTelevision News Review, Fintan Walton talks to Naiyin Wang, Investment Director at Shanghai Fosun Pharma

Fosun's focus and activities in China

Fintan Walton:

Hello and welcome to PharmaTelevision News Review here at BioTrinity 2011. On this show I have Naiyin Wang, who is the Investment Director at a company called Shanghai Fosun Pharmaceutical and you are based here in London, welcome to the show.

Naiyin Wang:

Thank you.

Fintan Walton:

Let's first of all before we got to Shanghai Fosun Pharmaceutical let's just look at the Fosun company, because that's obviously a Shanghai based company?

Naiyin Wang:

Yes, well Shanghai Fosun started as a diagnostic company in '92,and in '94 became Fosun Pharma getting into the pharmaceutical business by '98 listed in our Shanghai exchange, and after that the Fosun Group's developed this kind of the investment IPO and now we have the Fosun International is in real estate, mining, steel. We have a brokerage, we have a joint venture with Prudential Financial of US of life insurance in China so that's kind a diversified interestingly, but for Fosun Pharmaceutical itself is still very much focused on the pharmaceutical side, we are we own every aspect of a healthcare in China. We are in manufacturing larger molecule, small molecule, we are in diagnostic, we also own 49% of Sinopharm which is number one distributor in China is larger than number two and number three put together. We are also in high end healthcare we are providing service we have a joint venture with the company called Chindex [PharmaDeals ID = 36550] which is NASDAQ listed company. We have a very good brand name hospital called United Family Hospital which we intend to with this joint venture to expand it out throughout the China.

Fintan Walton:

Okay, so you are quite even within Shanghai Fosun Pharmaceutical you are quite diversified in your activities?

Naiyin Wang:

Yes.

Fintan Walton:

And so just looking at the products that you sell in China could you describe what those products are in particular on the pharmaceutical products?

Naiyin Wang:

Well I can't recall all the detailed aspect the product names, but we are in central nervous system and diabetic , we are the number one supplier of the animal insulin in China, we are in cardiovascular , we are also in oncology , infectious disease , hepatitis .

Fintan Walton:

And these are generic products or are the patented products?

Naiyin Wang:

Well in China most of the company including Fosun Pharmaceutical they are all in generics.

Fosun's development strategy in China and oversea territories

Fintan Walton:

Okay, so it's obviously Shanghai Fosun Pharmaceutical is a rapidly expanding company and from what you've said now has quite a dominant position within China, you are based in London and so let us just hear about what's your job function is in London?

Naiyin Wang:

In terms of our Fosun's as I said in development strategy we have two aspect or three I would say, one is which we invest quite heavily I would say in the research and development, the three areas we invest in one is larger molecule we are having dozens of biosimilars, we have three returnees from the US, we have set up the company in Shanghai we have several products in the pipeline in biosimilar setting, we have also again some of the traditional Fosun Pharmaceutical always try to talk to Chinese people in the US again three returnees from US they used to work in the large generic company in the US they are doing sustained release and the inhaled products in general as well, so that's the second one. The third one is that we have also invested in a small molecule company in that we are doing very early stage discoveries that's the very, very early stage small molecules, so that's three aspect of the research and the second aspect of the strategy is we are expanding very fast in China, we are trying to we as mentioned the sixth area we are in we are trying to strengthen them and on those areas we are not in we're trying to getting them by acquisition so we do that very actively in china, for example this beginning of this year we just acquired a company in North part of China is in vaccine [PharmaDeals ID = 39235], so we are in vaccine now, that will be the pattern would be repeated in China we will do that well actively we have just hired a VP who responsible for the strategic acquisition in China. As far as outside China is concerned we have office set up office in London from last year and then Europe office has been in existence for three-years now similarly last year we set up a Tokyo office. So this three office have a similar function basically again these three aspect one is find and evaluate and to invest into generic pharmaceutical companies in their own geographic settings, and secondly is to try to attract inward investment if the company unable or willing to enter into China by themselves we are happy to be a partner there with those companies even they have good products then you know have a joint venture in China that's the second, certainly we are quite interested in in-licensing new products as well, have branded new products in-licensing those products into China market, so all-in-all we the first thing we concentrate is the Chinese market.

Fintan Walton:

Right, but obviously through the London office, New York office and Tokyo office you are looking for other opportunities that not only as useful to China, but also to grow your own presence in each of the major territories?

Naiyin Wang:

Yes that will be the preparation, first we need to scale some experience to how to work with outside the oversea companies, the pharmaceutical arena how is it working, how what is the way of doing business here outside China we know well in China, but outside China we are beginners so we try to get some experience, but secondly is as I just mentioned earlier we have some pipeline it's kind of be better type of products those products when they come up to the market may be have a opportunity to get into in North America and European countries, so that's we are preparing for that as well.

Fosun's strengths and advantages over other pharma companies in China

Fintan Walton:

Right, and going back to China I mean obviously some of the more better known western companies are in China, how would you differentiate yourselves from say the presence of a Pfizer or a GSK in China?

Naiyin Wang:

I would say is the we know the ground well that's probably the first thing what I would say, although the lets say the big pharma's they have their own presence in China, they have their own sales force but I think we can do better, we are actually talking to some of those big pharma's in some of the not all the products but some of the products so that show there is a some difference something's we can do better then maybe they don't want to spend that much money to actually you know investing into this build up the sales force which we have already possessed in China.

Fintan Walton:

So in the end your role is to be is to look for opportunities, be quite flexible about the type of arrangement that you can enter into with these opportunities?

Naiyin Wang:

Yes well one of the Fosun's strengths I would say this it's quite open, this is a four individuals start from '02 as I've said now they occurred of the innovatives of the person, we are open for any suggestions, any opportunities, if we see the opportunity we will go for it and the decision another thing about this Fosun is compared with other Chinese pharmaceutical companies that decision making is quite quick when we set up a goal we can make a decision very quickly, another thing probable I should mention is since both pharmaceuticals Fosun Pharma and Fosun International are posted listing in Hong Kong, we have some foreign reserve if you like, so when decisions are made then the follow-up should be quite quick as well.

Fintan Walton:

Naiyin Wang, thank you very much indeed for coming on the show.

Naiyin Wang:

Thank you for inviting me.

Fintan Walton

Dr Fintan Walton is the Founder and CEO of PharmaVentures . After completing his doctoral research on the genetics of cell proliferation at the University of Michigan(US)and Trinity College (Dublin, Ireland), Dr Walton gained broad commercial experience in biotechnology in management positions at Bass and Celltech plc (1982-1992).

Naiyin Wang

Investment Director

Naiyin Wang currently works as Investment Director at Shanghai Fosun Pharma. Naiyin Wang is trained as a medicinal chemist in China; Received PhD in molecular biology at Imperial College in London. Worked as researcher in many different disciplines. Gained commercial experiences by sales of chemicals including APIs and promoting packaging services from china to European companies; As part of team, try to raise fund for a 3D imaging device; Formed a company to do the technology transfer to Chinese pharmaceutical companies in the area of Biotechnology. Now, works as the investment director and chief representative of the Shanghai Fosun Pharmaceutical in London office.

PharmaVentures

PharmaVentures is a corporate finance and transactions advisory firm that has served hundreds of clients worldwide in relation to their strategic deal making in the pharmaceutical, life science and healthcare sectors. Our key offerings include: Transactions / deal negotiations; Product / technology valuations; Deal term advice; Due diligence & expert reports; Strategy formulation; Alliance management; and Expert opinion for litigation/arbitration cases. PharmaVentures provides the global expertise to ensure our clients generate the highest possible return on investment from all their deal making activities. We have experience of all therapeutic areas and can offer advice on both product and technology commercialisation.

Shanghai Fosun Pharma

Shanghai Fosun Pharmaceutical (Group) Co., Ltd is a China-based company engaged in research, development, production, distribution and retailing of medical products. The Company's principal products are pharmaceuticals for malarias, such as Artesunate Tablets; pharmaceuticals for liver inflammations, such as Atomolan; pharmaceuticals for female diseases, such as Huahong Tablets, as well as pharmaceuticals for diabetes , such as insulin injection. The Company also provides pharmaceuticals for cardiovascular diseases , antineoplastic drugs, pharmaceuticals for sick disease, pediatrics drugs and gastrointestinal tract drugs, among others. The Company also operates regular chain drug stores. It distributes its products primarily in domestic and overseas markets.