a. Overview: Common and traditional Chinese Medicine
Tasly Group, one of the biggest Chinese pharmaceutical
companies, was founded in 1994 and manufactures and develops different types of
medicine. It offers both chemical and biological medicine, as well as modern
traditional Chinese medicine. As a part of the rapid growing Chinese
pharmaceutical industry, Tasly has received several awards and has been one of
the "top 10 brands influencing Chinese industry and agriculture" in
2006.
Besides its success in the growing Chinese
pharmaceutical market, Tasly's market shares and publicity increase all over
the world. Shares of the company are listed on the Shanghai Stock Exchange.
b. Internationalization Strategy: Entering developed
and Developing Countries
With the goal of establishing itself amongst the
biggest pharmaceutical groups worldwide, Tasly initiated an international
expansion in 2006.
In developing countries, Tasly follows a direct sales
strategy with low prices, to achieve as large market share as possible. If not
feasible, Tasly seeks to enter cooperation with companies that are already
present in regional markets and have established local distribution channels.
In developed countries, Tasly enters the mainstream market of prescription
medicine. Therefore, Tasly achieves ratification of medical usage for its
products. After that, it promotes the products among doctors and hospitals to
compete with the established pharmaceutical producers.
c. R&D and Intellectual Property: An experimental
Enterprise
Tasly focuses on R&D and owns a large group of research
departments. The company reinvests about ten percent of its yearly sales
revenue in its R&D division and employs 130 specialists in its R&D
division. Tasly researches in fields of Chinese medicine, chemical drugs,
biomedicine and healthcare products. As a result, the company was ratified by
the Chinese Science and Technology Ministry as one of the experimental
enterprises for innovative production.
In the period from 2001 to 2010, Tasly applied for
more than 930 patents and utility models.
In the period from 2001 to 2010, Tasly applied for
more than 930 patents
The main difference between a patent and an utility
model is the durability and the strength of protection. Patents are protected
for twenty years, while utility models are only protected for ten years. Thus,
an utility model can be described as a weaker form of patent.
After a small number of applications in 2001 and 2002,
there was a heavy increase in 2003, leading to a maximum of about 170
applications in 2005. After 2005, the number of applications decreased again
and reached the lowest level since 2003 in 2010. The fact that utility models
are hardly used can be explained by the need for strong protection of
pharmaceutical innovations.
The geographical distribution of Tasly's patent and
utility model applications reflects its internationalization efforts. From the
very beginning on, a big portion of Tasly's applications were filed outside of
China. In the time between 2000 and 2004, around 40 percent were filed in other
countries. From these non-Chinese applications, 75 percent are attributed to
"worldwide" or "others". This illustrates Tasly's
engagement in developing countries.
The distribution of the applications across different
technological sectors depicts the focus of Tasly's research. With 73 percent of
the applications, the pharmaceutical area is dominating its research efforts. Besides
that, only organic chemical and analysis patent applications account for more
than five percent of the total applications. These sectors contribute to the
pharmaceutical research and will always play a role in the future.
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