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Johnson & Johnson became the first global corporate giant to drastically localise medical innovations in China.

Johnson & Johnson launches health care research centre in China

Johnson & Johnson launches research centre on mainland to develop new drugs and mobilise start-ups and talent from around the world

US health care giant Johnson & Johnson announced yesterday the establishment of a major research centre and open platform in Shanghai to help develop innovative new drugs aimed at tackling diseases such as hepatitis and lung cancer while addressing the unmet health needs of Chinese patients.

The centre is a step forward in tapping the vast health and drug market, mobilising global investors and scientists to nurture early discoveries and turn them into clinical applications against a variety of diseases.

"The major differentiator will be innovation which will strengthen our R&D capability and enrich our [drug] pipeline," Jesse Wu, the chairman of J&J China, told the

"We used to invest in manufacturing in China and develop the market, but the model, we believe, is not enough to bolster our future growth."

J&J said the centre will be an ecosystem designed to convene global start-ups, venture capitalists, research institutions and talent to commercialise innovative research into medical products or solutions.

The company would not disclose financial terms such as the amount invested in the new project, but Wu Dong, head of the J&J Asia-Pacific innovation centre, said the various stages of development before turning the early discoveries into cures for diseases that are prevalent in China would be a long and gradual process that echoes China's efforts to improve medical conditions in the country.

J&J is the world's largest and most diversified health care company with products spanning the pharmaceutical, medical device and consumer product industries.

The firm became the first global corporate giant to drastically localise medical innovations in China while bringing early-stage scientific research to the world's most populated market.

It joined domestic companies such as non-state-owned conglomerate Fosun Group to bring the world's most advanced technologies, services and devices to meet the demands of increasingly affluent Chinese patients.

Jesse Wu said the government's determined efforts to improve people's living standard turned out to be one of the driving forces in the expected robust growth of the Chinese market over the next 10 years.

"The reform brings opportunities," he said. "The government has done a good job in health care reform and more items need to be addressed."

The Asia-Pacific innovation centre also covers other markets such as Australia and Singapore. It will focus on research into hepatitis B, blood diseases, lung cancer and other lung diseases, all of which are increasingly impacting the life expectancy of people on the mainland.

Wu Dong said it normally took five to seven years to come up with new medicines or commercial solutions, but he was hopeful that by making the most of global scientific resources and funds, the development pace could be accelerated. J&J founded its first joint venture in China in 1985 and now employs about 10,000 people in over 90 locations in the country.

Jesse Wu declined to comment on the case that ensnared British drug company GlaxoSmithKline, but insisted the new innovation centre would not only provide scientific and financial support to the start-ups but also help their operations to be in full compliance with regulatory requirements.

This article appeared in the South China Morning Post print edition as: J&J centre to focus on Chinese health
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