From：
China Daily Author：
Wang Chao
Advanced technology is being used at Tasly Group's
production plant. Provided to China Daily Traditional Chinese drug company
wants to make inroads in US market No longer satisfied with being part of the
huge "world factory" of producing only cheap clothing and Christmas
decorations, Chinese companies are marching into the United States to tap
fields where few predecessors have ever been - such as pharmaceuticals.
Tasly Group, one of the major pharmaceutical companies
in China, debuted in the US by investing $40 million on a research and
manufacturing operation in Maryland, which is expected to open in May. Sun He,
chairman and president of Tasly America Inc, says the construction and
renovation of the base will cost $15 million. The remaining $25 million will be
spent on clinical tests that will start in August.
Established in 1994, Tasly is a comprehensive
pharmaceutical company covering the fields of research and development, herb
planting, manufacturing and distribution. Its signature product is Tasly Danshen
Plus Capsule, a drug that protects the heart and helps it function with
ingredients such as Notoginseng and other traditional Chinese herbs. The
medicine will also be the first product Tasly introduces to the US market, Sun
says. Currently the capsule has passed the phase 2 test by the US Food and Drug
Administration (FDA).
"It takes another one- and- half years for us to
do the FDA (phase) 3 tests. Once it is approved, our product can enter the
pharmacy," Sun says. Based on Tasly's previous accomplishments, the drug
will be approved by then, Sun says with confidence. "The medicine has been
approved in 26 countries as a prescription drug, so I believe it will pass this
time."
However, doing pharmaceutical business in the US
requires different strategies because of fundamentally different medical
systems, Sun admits.
In China, the public is bombarded by medicine
commercials and is deeply influenced by them; but here, the FDA strictly
regulates drug advertisements.
"You need to convince the FDA and medical professionals
that your drug is safe and effective, rather than persuading the public,"
Sun says. Currently, the biggest barrier is that there is no clinical history
for traditional Chinese medicine in the US, analysts say. Most people are only
familiar with Western medicine and therefore suspicious of TCM's effectiveness.
Gu Jiaji, an expert in the pharmaceutical industry
before she became vice-president of REES Star Continuing Care Group, says
Americans have slowly started to accept TCM, but it's mainly popular in Asian
communities. The mainstream market is still in favor of Western medicine. Plus,
she says, insurance companies don't usually cover the costs of TCM. Ann
Alquist, a director at the National Center for Media Engagement, who studied
Medicare systems as a Fulbright Scholar, says as a consumer she has heard of
Chinese medicine and considers it "homeopathic, but so not
scientific". "I've never asked for Chinese medicine as a treatment
from my doctor. I tend to trust things the FDA approves. I rely on my personal
network as well to refer me to non-traditional Western medicine. I'll try most
any remedy within reason, because I don't like taking pharmaceuticals to begin
with."
Like most Americans, Alquist doesn't usually go to the
doctor unless she needs prescription drugs. "I buy over-the-counter
medicines, like ginseng capsules, Echinacea, green tea, things like that."
Warren Wang admits that introducing TCM to the US
market will be very difficult. Wang is a pharmaceutical regulatory consultant
and a business associate with the Maryland International Incubator. He holds a
doctorate in chemistry and has worked in the chemical and pharmaceutical
industry for 30 years.
"In China, TCM has been practiced for thousands
of years, and people accept the principles and buy into the philosophy,"
he says. "But here people don't have the necessary cultural background.
"Here doctors and patients are highly
result-oriented, they believe only in test results from professional
institutes. Celebrities have little role to play in commercial persuasion to
the general public."
To tackle this issue, Tasly is arranging congressional hearings to tell the public that "TCM is no longer the small dark shop hidden in the corner of Chinatown; it has evolved with time and modern technology", Sun says.
To tackle this issue, Tasly is arranging congressional hearings to tell the public that "TCM is no longer the small dark shop hidden in the corner of Chinatown; it has evolved with time and modern technology", Sun says.
He cites acupuncture, which didn't used to be
mainstream, but is now accepted by many people in the US.
"This is partly attributed to Richard Nixon's
visit to China," he says. During his trip with the former president, New
York Times reporter James Reston received acupuncture after an emergency
appendectomy.
Reston was so impressed with the post-operative pain
relief that he wrote about his experiences, which gained wide attention from
Americans. "So, to persuade the authority is the key," Sun says.
"The top down strategy is much more effective than bottom up, given the US
medical system."
Sun plans to tell Congress that TCM options can be a
financial relief for the Medicare burden, by making a comparison between costs
for treating angina, a heart condition. "While on average a brand name
medicine costs $325 a week, the similar TCM costs only $5. Chinese medicine is
especially good at aged diseases and gynecological diseases, which happen to be
the most expensive part of the medical system," he adds.
Besides introducing TCM to policymakers, Tasly is
making connections between Chinese and US doctors to work on the same clinical
case to inform Western counterparts about TCM treatments.
Although the approaches seem to work in the US, Wang
says other ways can be adopted to develop the pharmaceutical business in the US
market, especially considering Chinese medicine is still in its infancy on the
continent.
For example, Wang says "made in India" has
gradually become accepted in the mainstream market because drugs have been
manufactured there for US brand names and have gained a good reputation over
time. "It takes time, and you cannot expect to break the balance and
become a brand name overnight. But it is much easier than starting from
nothing," Wang says.
Another approach, Wang suggests, is to acquire niche
drugs that target very specific diseases. "These drugs don't have a large
patient group, but are indispensable in certain areas. Chinese companies can
acquire these medicines and turn them into their own brand names." He says
no company can reach the top of the pyramid very quickly in the pharmaceutical
industry, but one can at least enter the pharmacy, which is the first step.
