Swiss pharmaceutical company Novartis AG yesterday began constructing a US$83-million site for drug production and development in Changshu of East China's Jiangsu Province.

The new site, Suzhou Novartis Pharma Technology Co Ltd, is Novartis' sixth investment project in China, which will analyze, develop and produce chemicals for drugs used to treat leukemia, epilepsy, hypertension and other diseases.

The centre is expected to become fully operational by the end of 2007.

Taking advantage of its location near the Yangtze River, products will be exported worldwide.

"The centre further reinforces the presence of Novartis in China," said Jeffrey Li, Novartis China president, at the groundbreaking ceremony.

For the first time, the global pharmaceutical company is conducting its drug development business outside Switzerland and the United States.

With an ageing population and increasing need for healthcare, China is expected to become the world's No 2 or No 3 pharmaceutical market in five to 10 years.

The new site is part of Novartis' long-term strategy to increase its investment in China. Early this year, it started an expansion project to double the size of its plant in Changping, Beijing.

The site is providing coartem, a drug that treats malaria, for the World Health Organization.

Following other global pharmaceutical companies like Roche and Pfizer AG, Novartis also plans to establish another drug research and development centre, possibly in Shanghai. The centre will be part of the US-based Novartis Institutes for BioMedical Research.

Novartis officials said they are still in discussion with the government and refused to reveal details.

Last year, Novartis introduced six patented drugs into China and, in 2006, two more will be introduced.

"This new plant of Novartis in China is another example of the strengthened partnership between Switzerland and China in recent years," said Swiss Ambassador to China Dante Martinelli at the ceremony.

"China is the focus of international attention for investment opportunities. The success of Novartis in China during the last 10 years has created a good example for other businesses in Switzerland seeking to explore opportunities in China."

The centre is also Novartis' first centre combining drug development and production, in an effort to improve the innovation efficiency and save cost, according to James Shannon, who leads the global development of Novartis Pharma.

The chemist base and growing market in China are the two major factors for Novartis to invest in China.

Novartis has conducted a thorough review of various options in the country since 2004.

Convenient transportation, government support and the broad talent pool in the Yangtze Delta area attracted Novartis to Changshu.

Thomas van Laar, head of Global Technical Operations of Novartis AG, said the Changshu site will employ more than 250 staff, including 50 chemical specialists, most of them Chinese.

Source: China Daily