Boogie (a multiple sclerosis company) merges with IDES (an oncology company) 2007 – Exploration into China market begins – Sir. Leadership, with support of Executive Management, visits China, meets with similar companies and business consultants; starts tapping Into network with China experience or connections to learn as much as possible about this vast, diverse country and the complex government regulations 2008 -Detailed P&L forecasting, including NP analysis, is completed and presented to Board of Directors long with entry strategies for multiple products.
Expansion into China market is approved Corporate “Rep Office” is established. Office lease is secured and fit-out is completed. First employee, a General Manager, is hired and relocates to Shanghai. He is a Taiwanese-national who speaks fluent Mandarin. Subsequent employees are hired over the next few months including secretary, office manager, Clinical Director and Regulatory Affairs Director. 2009 – China office officially opens 2010 – Current CEO,Calm Mullen, a big proponent of Asia expansion, steps down In January. New CEO, George Scans, takes the helm In July 2010.
China Clinical trial applications (Cats) are submitted for oncology, multiple sclerosis and ALLS products. Regulatory approval for these Cats to start local trials (a requirement for market approval) Is expected to take 2 months. 2011 -? Scans announces that oncology division will be depreciation and sold off. Went on commercial 2012-?CEO not in favor of Asian market 2013 – In January, announcement that ALLS drug has failed and program is immediately terminated. In April, decision to close China office is made. Hurdles in
China Market – High Barriers to Entry (complicated operating environment) Complex and very long regulatory pathway t for drug approvals Extremely competitive for good talent leads to high turnover Difficult political environment; bribes still commonplace Big Macs have the Incumbents’ advantage and a broad array of dynamic local firms crowd the playing field Little or no reimbursement for high-priced biologic Geographically huge “red flags” Local test and process General manager —not local 3-4 million loss Question: How the operation in china is different from other Asian countries?
