Novartis to invest $1b more in Shanghai R&D institute

Novartis International AG, the world's sixth largest pharmaceutical company, said yesterday that it will add an additional investment worth $1 billion to strengthen research capability in China during the next five years, to cash in on the nation's rapidly growing medical business under the country's healthcare reform.

The move will turn the research and development (R&D) center in Shanghai into the largest of its kind for pharmaceuticals in China. "It's a major strategic step for Novartis China," said Daniel Vasella, chief executive officer and president of Novartis International AG.

Besides the Shanghai center, Novartis has two other R&D centers worldwide, in Switzerland and the United States. The Shanghai center was established in 2006.