Johnson & Johnson Chief Eyes Acquisitions In China
Published: Nov 10, 2014
November 10, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Global biopharmaceutical company Johnson & Johnson announced today that it has interest in expanding its company further overseas to China, according to Bidness ETC, despite the fact that China is experiencing sluggish economic growth.
Johnson & Johnson is allegedly interested in moving to China because of the opportunity to increase pharmaceutical sales that come out of the country. It also hopes to boost sales by shifting its focus to diseases such as lung cancer, according to the Wall Street Journal.
Medical devices currently make up 50 percent of Johnson & Johnson’s total revenue that comes out of China, while pharmaceutical and consumer product sales comprise an additional 25 percent from the country. As Johnson & Johnson looks to remain competitive in China, it may add Chinese companies to its portfolio for baby and beauty products, medical devices and drugs.
Johnson and Johnson’s Innovation Center
On Oct. 29, Johnson & Johnson announced the opening of the Asia Pacific Innovation Center, located in Shanghai. The center was designed to extend the network of Johnson & Johnson Innovation Centers in life sciences hot spots around the world.
“There is an explosion of growth in the Asia Pacific region, and China in particular, as well as significant medical needs,” said Dong Wu, the head of the Johnson & Johnson Innovation Pacific Innovation Center. “The Asia Pacific Innovation Center plans to build on the Company’s track record of collaboration in the region and advance the most promising science. It will play a key role in sourcing early stage science in the region for the development of new medicines, medical devices, and consumer products.”
The Asia Pacific Innovation Center has already facilitated collaborations in both China and Australia, including a project that focuses on pain relief and new approaches to autoimmune disease.
“The Johnson & Johnson Family of Companies has a long standing presence in China extending back almost 30 years,” said Jesse Wu, a chairman at Johnson and Johnson in China. “Our on the ground presence across the region allows us to work side by side with our partners with speed, agility, and insight to translate innovations into new products. The Asia Pacific Innovation Center supports our larger goal to address China’s specific healthcare needs, invest in local capabilities, and increase our external collaborations.”