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Big Pharma's China growth; Pfizer's new Upjohn HQ; Hansoh's $1B Hong Kong IPO

May 31, 2019 / Angus Liu

As the Chinese government pilots a bulk procurement program for generic drugs, Big Pharma's older medicines are under increasing pricing pressure. Pfizer is planning a push into China's rural areas in response to the headwinds, and it has moved the headquarters of its Upjohn established medicines business to Shanghai. China's Hansoh Pharma plans to raise $1 billion in a Hong Kong IPO and has secured some venture capital bigwigs as cornerstone investors. And more Big Pharmas followed by Wolfe Pharma analysts turned in an average 29% sales growth in China in the first quarter, versus 8.2% in the U.S. These firms are pivoting to innovative products in China, but many warn of a slowdown the rest of the year from their established medicines departments, as the Chinese government pilots a new drug procurement process to slash generic drug costs. Pfizer lost out to Chinese generics makers for supplying cholesterol drug Lipitor to hospitals in 11 major cities in the bidding process...