Dalian: Ranbaxy, one of the first Indian companies to set up a venture in China, is bullish in its operations, securing increased market share for its innovative medicines and for sourcing intermediaries to cut production costs, a top executive has said.
“There are a lot of opportunities for collaboration and to do more than what we have been doing,” CEO and managing director, Ranbaxy Laboratories Ltd, Malvinder Mohan Singh said.
“We are not looking at any acquisitions in China,” Singh said on the intentions of the company, which is now ranked among the world’s 10 best in the generic business.
“Our objective is to seek partners with whom we can work for the domestic Chinese market and jointly do things and bring a wider range of products,” Singh, who is participating in the Inaugural Annual Meeting of the New Champions organised by the World Economic Forum (WEF) here in the northeastern port city of Dalian.
A “decent part” of Ranbaxy’s sourcing is coming from China, he said, adding that the sourcing of intermediaries enables the company to continuously focus on cost reduction, cost competitiveness and add value on that in making the final product.
“We are working with a few Chinese companies, exploring options with the regulatory knowledge and the developed country knowledge that we have, how we can work with them to jointly to make them move up the value chain as well,” Singh said.
One is our own business in China for the Chinese market and the second is leveraging China’s scale, capacity, capability, economies of scale for our own raw material needs and add value and take it forward, he said.
Ranbaxy Guangzhou China Limited’s (RGCL) manufacturing facility in the southern city of Guangzhou was one of the first in China to receive Good Manufacturing Practices (GMP) approval, production started in 1995 and currently the Company’s product portfolio comprises over 35 products from leading therapeutic segments.
Several pharmaceuticals are produced and marketed across therapeutic areas with a particular emphasis on antibiotics, anti-virals and cardiovasculars.
Singh said Ranbaxy is recognized as the leader in China in the generic segment of Ciprofloxacin and Simvastatin and the company has recently launched differentiated products to maintain its leading edge in the world’s most populous nation.
Ranbaxy in China has adopted an innovative agency model through which the company sells its products nation-wide to some 4,000 medical institutions.
The company has appointed about 150 agencies who have a field staff of over 1,500 who are able to cover over 4,000 level-I and level-II hospitals across China. Another advantage of the agency model is that this model can take any number of products, Singh said.
Singh also welcomed the Chinese government’s recent move to focus on the compliance and the regulatory requirements of companies as part of the effort to turn the Chinese pharmaceutical sector a world class industry.
“This is something very good for good, high-quality and ethical companies like Ranbaxy who believe in quality and compliance,” Singh added.