The recent restructuring of the healthcare industry by the Chinese government has paved the way for a stronger and more resilient pharmaceutical industry.
Tighter regulations to weed out corruption, stronger intellectual property protection and the more forceful implementation of Good Manufacturing Practices (“GMP”), sieved out the smaller and weaker players, while those who played by the rules, who have been compliant with government regulations and quality standards, such as C&O, emerged as stronger players.
CORPORATE STRATEGIESContinued focus on developing new drugs
R&D will continually place C&O on the frontiers of
discovering new drugs and formulations. To increase our R&D capabilities, our existing R&D centre in Nanjing will be expanded. The expanded R&D centre will house a state-of-the-art laboratory
and other research facilities for (i) pharmacokinetics
and drug metabolism (ii) synthesis of new chemical
compounds (iii) study on new formulations of drugs
and (iv) quality control and quality assurance.
Concurrently, our R&D centre in Shanghai will also be expanded to meet the growing demand for pharmaceutical research services in the PRC.
With our corporate emphasis on R&D, C&O’s new drug development efforts will continue to grow, particularly, when we partner other international pharmaceutical companies to bring in new and better drugs into China.
Expand portfolio of C&O branded products
While we continue with the development of generic
drugs, our focus will be placed on producing drugs
of higher value that target the mid to high end
markets as competition is less keen in these
segments with prices remaining relatively stable,
unlike the low end market that experiences constant
downward pricing pressures.
We will continue our strategy to introduce more of our own drugs into the market.
Contract Research and Contract Manufacturing
C&O has been providing contract research and
contract manufacturing services to pharmaceutical
companies both in China and outside of China. With
our state-of-the-art R&D facilities and expertise,
sophisticated manufacturing plant, and most
importantly, our familiarity with the PRC market, we
believe we are a strong contender for partnerships
with the multinational pharmaceutical companies.
Distribution and Marketing
We will continue to expand our distribution network,
particularly in the area of south western part of China.
We will also launch more marketing campaigns to
boost up the sales of C&O branded and third party
products and increase our market penetration.
We envisage our future growth to be driven by the following trends:
- increasing in consumer spending power induced by strong economic growth;
- greater awareness of the need for healthy living; ageing population in China;
- strong interests of overseas pharmaceutical companies to enter the PRC market due to market potential;
- growing trend of overseas pharmaceutical companies to outsource R&D and manufacturing activities to third parties in China.
With our strong integrated capabilities and our commitment to realise our growth plans, the way ahead for C&O looks more robust than before.
