Globalization of Traditional Chinese Medicine (TCM) Presented at Chinese Bioscience Association
-
Upload
lek-consulting -
Category
Business
-
view
850 -
download
1
description
Transcript of Globalization of Traditional Chinese Medicine (TCM) Presented at Chinese Bioscience Association
^ìÅâä~åÇ
_~åÖâçâ
_ÉáàáåÖ
_çëíçå
`ÜáÅ~Öç
içåÇçå
içë=^åÖÉäÉë
jÉäÄçìêåÉ
jáä~å
jìãÄ~á
jìåáÅÜ
kÉï=aÉäÜá
kÉï=vçêâ
m~êáë
p~å=cê~åÅáëÅç
pÜ~åÖÜ~á
páåÖ~éçêÉ
póÇåÉó
qçâóç
têçÅä~ï
Globalization of Traditional Chinese Medicine (TCM)
The materials contained in this document are intended to supplement a discussion. These perspectives are confidential and will only be meaningful to those in attendance.
iKbKhK=`çåëìäíáåÖ=iáãáíÉÇI=cäççê=PQI=`fqf`=pèì~êÉI=NNSU=k~åàáåÖ=oç~Ç=tÉëíI=pÜ~åÖÜ~á=OMMMQNI=`Üáå~==qW=USKONKSNOOKPVMM===cW=USKONKSNOOKPVUU===ïïïKäÉâKÅçã
Chinese Bioscience Association
TCM Market Overview.CONFIDENTIAL
DRAFT
1
Global Capability
Life Sciences Experience & Expertise
20 offices worldwide, including 2 in China Founded in 1983 in London 1000+ consulting professionals; 100+
partners Advised 25% of largest 200 companies
globally Highly differentiated from peer consultancies
in analytically driven decision-making
Leading advisor to life sciences companies around the world with over 2,800 engagements; advised 9 of the top-10 pharmas, 4 of the 5 top global biotechs and more than 150 biotechnology companies
More than US$120bn in transactions in life sciences
Awarded Healthcare Sector Adviser of the Year 2010 by Acquisitions Monthly and Consultant of the Year at the 2011 Health Investor Awards
On the ground capabilities and experiences in China; over 50 projects each year in China life sciences and healthcare
L.E.K. Consulting is a leading global strategy firm with a strong focus on life sciences
Introduction to L.E.K. Consulting
TCM Market Overview.CONFIDENTIAL
DRAFT
2
TCM has evolved over thousands of years in China. Practitioners use herbs, acupuncture, and other methods to treat a wide range of conditions, while formulated TCMs are also available today
Globalizing Traditional Chinese Medicine
6,000 different medicinal substances, with 600 widely used time-honored
therapeutic herbs
Sanqi 三七
Astragalus 黄芪
Salvia丹参
Sterculia 胖大海
Bezoar 牛黄
Danshendripping pills
丹参滴丸
Danhonginjection丹红注射液
Rubescens tablet冬凌草片
Over 13,000 formulated TCM products
Bezoar tablet牛黄解毒片
TCM practitioners
Source: L.E.K. research and analysis
TCM Market Overview.CONFIDENTIAL
DRAFT
3
TCM is mainly used for the treatment of cardio-cerebral vascular, oncology and respiratory ailments
Globalizing Traditional Chinese Medicine
Breakdown of China TCM Rx drugs by select therapeutic areas (2010)
16
12
8
5
DermatologyOthers
37
6
432
Percent
OncologyRespiratoryMusculoskeletalGastrointestinalGynecologyUrologicalNeurologyENT
100
80
60
40
20
0
CCV
4
Source: Broker report, L.E.K. analysis
Cardiovascular cerebral vascular treatments is the single largest therapeutic area for TCM- TCM injections mainly benefits from its fast
efficacy with safety extracts from TCMs, and better value for money compared to western medicines
- Oral drugs are typically used for long-term treatment, such as prevention or post-surgical therapies of hypertension, stroke, and disorders of microcirculation
Oncology therapies are mostly in supportive care and typically enhances the patients’ quality of life
TCM Rx drugs for respiratory mainly target at fever and infection treatment, cough relief, and throat medication
TCM Market Overview.CONFIDENTIAL
DRAFT
4
Wider coverage of TCM medical resources Increased number of TCM practitioners Improved patient acceptance of TCM treatment Set up of nation wide and provincial TCM R&D institutes for infectious
disease prevention and treatment Set up TCM department in infectious disease specialized hospitals Enhanced clinical research on specialized therapeutic areas
China’s 12th Five Year Plan (2011-15) for TCM industry proposed establishing resources, standardizing technical practices, and improving internationalization
Globalizing Traditional Chinese Medicine
Establishing resources
Technical standardization
Continue to develop systematic research on TCM theory, diagnosis technology and medical efficacy assessment
Build TCM clinical research database and a nation wide platform for information sharing and management
Inter-nationalization
Cooperation with foreign government and international organizations on TCM development
Better promoting TCM’s international recognition and adoption Build international TCM research and development bases
Source: 12th Five Year Plan of TCM Industry, L.E.K. analysis
TCM Market Overview.CONFIDENTIAL
DRAFT
5
(Artemisinin)
(Paclitaxel)
There are already traditional Chinese medicine ingredients developed through the Western pharmaceutical pathway
Globalizing Traditional Chinese Medicine
Product / ingredient
Qinghaosu, has been used to treat fever for over 2000 years
1972: Artemisinin extracted and purified from Qinghaosu
1991: Novartis and China Academy of Military Medical Sciences co-developed Coartem, a fixed dose artemisinin-based combination therapy for falciparum malaria treatment
1998-2009: Western country approvals
Paclitaxel is a mitotic inhibitor used in cancer chemotherapy. It was isolated from the bark of the Pacific yew tree and discovered in a U.S. National Cancer Institute program at the Research Triangle Institute in 1967
Paclitaxel was developed commercially by Bristol-Myers Squibb (BMS) in 1993
Paclitaxel is now widely used as treatment for oncology, such as carcinoma of the ovary, breast cancer, non-small cell lung cancer, AIDS-related Kaposi’s sarcoma
HistoryCompanies
Source: Company Website, L.E.K. analysis
Company Examples
TCM Market Overview.CONFIDENTIAL
DRAFT
6
As of April 2011, medicinal products containing herbal substances/preparations must fall within three categories- traditional medicinal use- well-established medicinal use- stand alone and mixed application
One TCM drug from China has received marketing authorization under the new regulations so far, with about ~10 drugs in application
Both Europe and the United States have outlined registration pathways to allow botanicals to be registered as Rx and OTC drugs
Globalizing Traditional Chinese Medicine
Europe
United States FDA issued the Guidance for Industry Botanical Drug Products which
sets out the framework for a new category of licensed drugs –botanical drugs – in June 2004- waiver for preclinical pharmacology / toxicology studies- should provide its safety and efficacy through randomized, double
blind, and placebo-controlled (or dose-response) studies
So far, no TCM drugs has successfully registered in FDA as botanic Rx drugs yet; though a number of companies are in process. Examples include Tasly, Hutchison MediPharm and Luye
Source: EU, US FDA, L.E.K. analysis
TCM Market Overview.CONFIDENTIAL
DRAFT
7
Besides Chinese companies, a number of multinational pharmas have begun to explore opportunities in botanicals and Chinese medicine
Globalizing Traditional Chinese Medicine
GSK unveiled its plan to open a new Discovery Performance Unit (DPU) in China to look at traditional Chinese medicines in February 2012
“… Within our discovery organization in China we have created a DPU that will marry traditional Chinese medicine with modern drug discovery and clinical efficacy. With modern technology, we have the potential to yield new molecular entities with significant efficacy …”
Chairman, R&D, GSK
In 2009, Novartis invested US$1bn in expanding its R&D center in Shanghai, which specializes in basic research and development of new drugs including small molecule and biological medicines to treat diseases that are highly prevalent in China- one of the objectives of the expansion is to allow Novartis to
combine modern drug discovery approaches with those of traditional Chinese medicine that have been used to treat patients in China for thousands of years
Source: Telegraph, Pharmaceutical Technology, L.E.K. analysis
Company Examples
TCM Market Overview.CONFIDENTIAL
DRAFT
8
Questions and discussion about globalizing traditional Chinese medicine
Globalizing Traditional Chinese Medicine
What is the role of Chinese medicine and botanicals in the global pharmaceutical market?
What are the companies doing in advancing this field?
Should Western pharmas invest in botanical R&D?
How can pharmas ensure consistency and product quality?
Will the US and Western physicians accept these as innovative drugs?
What are the concerns?
TCM Market Overview.CONFIDENTIAL
DRAFT
99
eÉäÉå=`ÜÉåiKbKhK=`çåëìäíáåÖÜKÅÜÉå]äÉâKÅçãEUSONF=SNOOPVMM EíFEUSONF=SNOOPVUU EÑF
äÉâKÅçã