The world's leading pharmaceutical producer, Novartis International AG, said yesterday that its Chinese revenues hit 1.56 billion yuan (US$188.41 million) last year, up 36.3 per cent.

The firm's pharmaceutical arm reported a revenue growth of 39.1 per cent, while that of its consumer health division increased by 15.5 per cent.

This growth has made China the firm's fastest growing market for three successive years.

The Swiss company announced it would up its investment in China this year by expanding its existing factory in the Changping District of Beijing.

Meanwhile, the firm's sixth global research and development centre is due to be completed in the country by year's end, said Li Zhenfu, president of Novartis China.

He said the company's Sandoz division, the generic drug business, will enter China through mergers and acquisitions.

The company is in discussions with several potential candidates, Li said, but declined to name them.

"Novartis not only aims to provide new pharmaceutical products through innovation, but also focuses on offering cheap generic products to a wide range of customers," Li added.

Generic drugs contain the same medicinal ingredients as the original brand name drugs, but are generally cheaper in price, as the their patents have expired.

Novartis's Sandoz division recently acquired well-known generic drug producers German firm Hexal AG and US-based Eon Labs Inc, making Novartis the world's largest manufacturer of generic medication.

Li said a large investment has been made to promote six new patented drugs in the Chinese market.

"A training centre will be established in China to improve the professional capabilities of personnel," Li said.

"We wish to achieve a growth rate of over 20 per cent this year, and maintain such a growth trend in the coming five years," Li said.

Novartis will continue slashing drug prices this year in line with the Chinese Government's call for a reduction in medical expenses.

"Adjusting the price level will influence the company's revenues, but Novartis, as the market leader, has the responsibility of bringing better health to more people," the president said.

China, together with India, Russia and Turkey, is recognized as an emerging market, according to Novartis' global strategy.

The company's global revenues reached US$28.24 billion last year, up by 14 per cent.

Its pharmaceutical products achieved a domestic market share of 4.5 per cent last year.

Source: China Daily