Investing in China — China Becoming Major Pharmaceutical Research Center
Lotus Pharmaceuticals, Inc., has advanced in the development of a treatment for Hepatitis B and also increased its number of local outlets to 15 retail stores. China offers a huge pool of subjects for study and a promising market for any resulting treatments. The cost of research in China is significantly lower than the rest of the world with researchers earning approximately $24,000.00 a year.
Lotus is now starting the required animal experimentation. It is expected to reach the market in 2009, and its annual sales revenues are forecast up to $20 million annually, with profits approaching $6 million.
China’s pharmaceutical market is booming and grew 20% to $11.7 billion last year, the third consecutive year of 20% growth or higher, according to IMS Health, a drug marketing-research firm in Fairfield, Conn. China will become the world’s seventh-largest pharmaceutical market by 2009, according to IMS. China is an emerging competitor to India, long the most-popular destination for outsourcing chemistry research and drug development, and China may become the next India.
Lotus, Inc. is well established in China in both R&D and retail sales.
In oil the small players locate near the big ones. In fast food the upstarts look for McDonalds. In retail the little fish open their doors near the major stores known as the anchor tenants.
The same is true in virtually all industries. Big pharmaceuticals are coming to China. China recently sent a message to the world — in the death sentence and execution of the head of their counterpart of their FDA. No more corruption.
Lotus Pharmaceuticals is in an excellent position to grow alongside the large pharmaceutical companies of the world. Novartis will invest about $100 million in R&D in China, which is the same amount that AstraZeneca PLC of Britain announced in May it would invest in R&D in China. Novartis stated intent is that its China location will eventually become one of its three big research hubs, alongside Cambridge, Massachusetts, and Basel in Switzerland—and ahead of its other facilities in Vienna, London, La Jolla, New Jersey, Tokyo and Singapore.
A host of multinational pharmaceutical companies have begun outsourcing drug research to China. The largest laboratory that a major multinational operates in China — run by Roche Holding AG — has about 60 scientists. Roche’s lab, which opened in 2004 with an emphasis on designing compounds for cancer, pays scientists up to about 200,000 yuan ($25,400) a year. The pharmaceuticals division of Novartis spent $3.97 billion on R&D last year. While that dwarfs the size of the company’s coming China investment, the planned center — which Novartis says will involve at least 400 scientists — shows one way the industry is responding to a pair of long-term problems: Blockbuster products are going off patent; and the cost of developing drugs is soaring.
“The whole biotech pharmaceutical effort here could become the world’s leading research effort within a decade,” says Mark C. Fishman, president of the Novartis Institutes for BioMedical Research. “The reason we came here is primarily for talent,” Dr. Fishman adds, playing down the cost savings from lower Chinese salaries.
Gold Horse International
Genesis Technology understands China’s growth. Gold Horse has become the second partner company to complete the new Genesis private-to-public program.
Gold Horse is an emerging leader in China in the building services marketplace. For more information, visit http://www.GoldHorseInternational.com.
In addition to Gold Horse and Lotus Pharmaceuticals (OTC BB:LTUS.OB – News), Genesis has four other Chinese companies under contract. All four companies, having undergone rigorous due diligence by Genesis and numerous professionals, are at various stages of the Genesis program. “Gold Horse’s success should place Genesis in a profitable position for the fiscal year,” predicted management.
For the year ending June 30, 2006, Gold Horse reported net revenues of approximately $22.6 million and net income of $1.7 million. Based on unaudited results for the nine months ended March 31, 2007, net revenues reached approximately $20.4 million and net income of $1.6 million. Kabani & Company of Los Angeles conducted the audit.
Genesis Technology Group, Inc. Boca Corporate Plaza
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Phone: (561) 988-9880
Fax: (561) 988-9890
Email: General Information: info@genesis-china.net
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