AstraZeneca stated it’s launching a brand new fund with China International Capital Corporation (CICC) to invest $1 billion in China’s healthcare sector because it expands its analysis work in the nation.
The fund would want to invest in Chinese companies, with firms in a life-sciences park; it opened in the eastern city of Wuxi in 2018 to be among its first beneficiaries, the British drug manufacturer’s chief executive officer, Pascal Soriot said.
AstraZeneca was a minority associate in the fund and would primarily play an advisory role in deciding on investments and supporting the corporations, he mentioned. The companies didn’t disclose the monetary details of the agreement.
The company further planned to broaden a present research and development facility in Shanghai from 450 employees to 1,000 and set up a new artificial intelligence innovation facility in the town.
Western drug manufacturers have profited from collaborations in China, where AstraZeneca’s sales have doubled since 2012, in addition to a softening in the regulatory setting for pharmaceutical companies.
However, the government has further been attempting to slash drug costs, altering the playing discipline as many corporations had relied in the past on selling older medication at premium prices. In September, China further expanded a pilot bulk-buying program to the entire nation in an attempt to bargain lower costs from drug producers.
Soriot stated these were both elements in AstraZeneca’s decision to make these investments in China, as the cost pressures had been encouraging firms to create new medicine that the federal government was approving and reimbursing at a quicker pace.