Merck, Simcere JV starts operations

Merck & Co and China's Simcere Pharmaceutical Group said on Sept 12 that their joint venture SMSD has officially started operations.

The JV aims to meet China's rapidly growing healthcare needs.

In July 2011, Merck, also known as MSD, and Simcere reached an agreement to establish the JV in China, which will merge the extensive resources and expertise of the global healthcare company and of the leading Chinese pharmaceutical company.

The partnership will help the companies achieve their goals in R&D, manufacturing and sales capabilities, according to the agreement.

The JV, headquartered in Shanghai, will be in charge of the company's daily operations. Existing manufacturing bases owned by MSD and Simcere will be used in the initial stage.

The initial focus of the new company will be branded pharmaceutical products for chronic diseases. Currently, more than 260 million people are diagnosed with chronic diseases, and 2 million people die from cardiovascular and cerebrovascular diseases each year in China.

Simcere and MSD will provide the JV with a combination of both companies' branded drugs for cardiovascular diseases.

The companies said the JV will also improve the accessibility of high-quality drugs for Chinese patients, especially those in rural areas, which is in line with the government's goal of deepening coverage of grassroots medical services.