Useful Advices - Business

The economic explosion of China

China is one of the most promising countries of this 21st century from an economic standpoint. The economy is so

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

aring. China is one of the only countries that experience a two digit growth. The size of the Chinese market is huge. China was the first country to reach one bil

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

lion people, and they are now close to 1.5 billion.

A short trip to Shanghai allows a quick evaluation of the country's rate of economic development. Wherever yo

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

look you will see cranes. Constructions of skyscrapers are everywhere. They replace the traditional three or four story homes. It is said that if you go to Shang

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

hai once a year, you will not recognize the landscape from one visit to the next.

The emergence of China goes together with an uprise of the quality of life. The

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

e is now a large, wealthy middle class in the major cities.

From an industrial standpoint, Chinese companies are in constant development. Very competitive world-

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

class companies are emerging. They are competing in global markets against the best American and European companies.

Between Modern and Tradition
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
>

But China remains a traditional country in its approach to commercial trade. Deeply anchored into an ancient culture, the Chinese market is difficult to enter
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
or a foreign company.

Business in China can only be done by relationships. You have to be properly introduced to the person you want to meet with by one of your
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
relations. It is unthinkable for example to pick up the phone and call a company to try to sell your products. This practice is considered provoking, even insulti
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
g, and certainly opposed to traditions. You will most likely close doors if you try to go this route.

This seems unthinkable for a European or an American, used
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
to a market-driven economy. It seems like good business practice to them to pick up the phone and call a prospect. A CEO can call the CEO of another company to di
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
scuss synergies between their two companies. Not in China.

You also need to know that Chinese society is very hierarchical and seniority is a dominant factor. In
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
a company the oldest person is generally the highest ranked person as well.

Many companies fail their introduction to the chinese market, either by ignorance of
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
the local customs, or by thinking that economic development would change the traditions. But the companies that succeed are the ones that adapt to the Chinese cul
t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ure.

You must have a sales agent

You cannot call prospects directly. How can you make business then? Find a local sales agent. Only he will fin
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
d the necessary connections that will introduce your company to your prospects.

When choosing a sales agent, make sure that he has the right connections in the i
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ndustry you are targeting. Choose an experienced person who already has a full address book. A sales agent that is already in your industry, or that represents ot
.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
er companies in your industry, or that worked for your competitors, will be the best sales representative.

Seniority being an important factor, make sure that yo
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
ur sales agent is old enough to be respected. A sales agent that is less than 40 years old will generally be less respected and his opinion may not matter as much

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Useful Advices - How To Do Business In China

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