For Japanese Companies

Background

There are various problems between Japan and China, including historical and political issues. In addition, there is a deep-rooted distrust of Chinese companies among Japanese firms. It is unfortunate that these issues are hindering business collaboration between Japan and China. This situation also applies to medical-related business. Another barrier in this area is that the healthcare-related systems in the two countries are very different. On the other hand, China’s healthcare-related market is growing rapidly compared to the Japanese market, which has remained flat. In particular, the growing number of affluent people in China is making it possible for Japanese companies to bring their high-quality healthcare businesses to China. Therefore, it is promising for Japanese companies to enter the Chinese market. On the other hand, there is still a huge gap in technology, experience, and social maturity between Japan and China in the medical field, making the introduction of Japanese technology, experience, and systems very promising for Chinese companies as a business. In this regard, it is very important for Japanese healthcare-related companies to expand their business in China. We were among the first to enter the medical business in China, establishing Beijing Tide Pharmaceutical Co., Ltd. in 1995 to develop and market a pharmaceutical product invented by our company, and we have laid the foundation in China by growing Beijing Tide Pharmaceutical Co., Ltd. into one of the leading pharmaceutical companies in China. In 2021, we also signed a capital and business agreement with Sino Biopharmaceutical Co., Ltd. Group, the largest pharmaceutical group in China, to expand our business in China. With these experiences and connections, we will provide support to Japanese medical-related companies considering expansion into China.

Since we are actually engaged in drug development, we can provide practical support and consulting.

• Evaluate products and technologies by various scientific expertise (pharmacology, biochemistry, intellectual property, production, clinical) and appeal to Chinese companies.
• Advice from companies in the Sino Biopharmaceutical Co., Ltd. Group from the perspective of actual development in China.
• Joint business and support is possible by utilizing the networks with government and medical institutions that each company in the Sino Biopharmaceutical Co., Ltd. Group has.

We introduce Sino Biopharmaceutical Co., Ltd. (each group company including Beijing Tide Pharmaceutical Co., Ltd.) as a business partner to Japanese companies in the medical field who are considering expanding into China. In such cases, we will provide support throughout the process to ensure smooth cooperation with China Bio-Pharmaceuticals. One of our recent successes is the out-licensing of Mikasa Seiyaku Co., Ltd.’s Pap drug technology to Beijing Tide Pharmaceutical Co., Ltd. through our intermediary. It has already generated sales in excess of 20 billion yen (at a higher drug price than in Japan) and has brought significant benefits to both companies.

We also conduct research and consulting with the support of Sino Biopharmaceutical Co., Ltd. for Japanese companies in the medical field that are considering expanding into China. For example, we would like to support Japanese medical-related companies considering expansion into China by conducting research and consulting on China’s medical system, intellectual property, market environment, etc.

In addition, many companies in the Sino Biopharmaceutical Co., Ltd. Group are engaged in businesses other than pharmaceuticals, such as hospital management, pharmacy management, cosmetics development and sales, health food development and sales, and hospital food development and sales. If you are interested in expanding your business in China, please feel free to contact us.

In addition to our own drug development, we also invest in and cooperate with promising companies in R&D to help them grow, as exemplified by Beijing Tide Pharmaceutical Co., Ltd., which was established more than 20 years ago by our company and a Chinese government hospital and has grown to become one of China’s leading pharmaceutical companies. We are also willing to invest in venture companies with innovative technologies and promising Japanese companies looking to enter the Chinese market. If you are a Japanese company (including venture companies) with innovative technology or products that cannot expand into China on your own, but are interested in doing so, please contact us. When Sino Biopharmaceutical Co., Ltd. invests in a Japanese company, we also invest in the company and act as a bridge between the Japanese company and Sino Biopharmaceutical Co., Ltd.

The Charoen Pokphand Group (CP Group) is the largest company in Thailand and one of the leading conglomerates in Asia with sales of 5 trillion yen, equivalent to half of Thailand’s national budget, and 300,000 employees worldwide. As the first foreign company to enter China under China’s reform and open-door policy, it is highly regarded in China and has established a good relationship with the government. In Japan, it has formed a business and capital alliance with ITOCHU Corporation, of which it is the major shareholder.

Sino Biopharmaceutical Co., Ltd. (listed on the first section of the Hong Kong market) is responsible for the medical and health sector of the CP Group. The founder of the company, Mr. Tse Ping (Vice Chairman of the Board of Directors of our company), also plays an important role in the entire CP Group as Vice Chairman of the Board. Sino Biopharmaceutical Co., Ltd. is a holding company and owns more than 100 companies, mainly pharmaceutical companies (Beijing Tide Pharmaceutical Co., Ltd. is one of them). It is one of the largest pharmaceutical groups in China, with approximately 15,000 employees, sales of over 400 billion yen, a growth rate of over 14%, and an enterprise value of over 3 trillion yen. Sino Biopharmaceutical Co., Ltd. specializes in linking companies within the group and enhancing their value.

It is also known for providing these resources to companies in need of funds or sales networks and helping them develop (e.g., going public). Recently, the company invested over ¥50 billion in Sinovac Biotech Ltd., which manufactures a new coronavirus vaccine, over ¥20 billion in a venture company (listed on NASDAQ) developing a dual antibody drug in the U.S., and has signed a contract to promote Shionogi & Co., Ltd. ‘s new coronavirus infection treatment (Zocova) in China. Ltd. signed an agreement to promote the company’s new coronavirus treatment (Zocova) in China.

After evaluating our technology, pipeline, human resources, and network in Japan, Sino Biopharmaceutical Co., Ltd. made a tender offer for more than 17% of our stock and entered into a capital and business alliance with us. Under the terms of the alliance, we will serve as the contact point for Japanese companies, i.e., we will mediate the out-licensing of their pipeline to Japanese companies, and the out-licensing of Japanese companies’ pipelines to them. In addition, when they invest in a Japanese company, we also invest in the Japanese company at the same time and act as a bridge between the Japanese company and Sino Biopharmaceutical Co., Ltd..

History and Performance

Beijing Tide Pharmaceutical Co., Ltd. was established in 1995 as a joint venture between our company and the China-Japan Friendship Hospital, a Chinese government-affiliated hospital, after Yutaka Mizushima, the founder of LTT who was then a member of the House of Councilors, consulted with the Chinese government as part of Japan-China medical exchange programs.

With the help of TAISHO PHARMACEUTICAL HOLDINGS CO., LTD. (who used our patents to manufacture and market Lipo PGE1 in Japan), we provided intellectual property and production technology for Lipo PGE1, China-Japan Friendship Hospital provided the production site, and Beijing Tide Pharmaceutical Co., Ltd. worked on the development of Lipo PGE1. As a result, we successfully launched the product in 1998, followed by Lipo-NSAID, another invention of ours, in 2003 (technology introduced from Kaken Pharmaceutical), beraprost sodium tablets in 2008, flurbiprofen pap in 2010 (technology introduced from Mikasa Seiyaku Co., Ltd. and mediated by us), and pronase granules in 2011. Subsequently, vildagliptin tablets (for diabetes treatment), lidocaine poultice, and limaprost tablets were also launched.

Beijing Tide Pharmaceutical Co., Ltd. built a research institute and factory in the 30,000-square-kilometer Beijing Economic and Technological Development Zone in 2005 with investment from Sino Biopharmaceutical Co., Ltd. (listed on the Hong Kong market, one of the largest pharmaceutical groups in China), the medical industry arm of the global conglomerate CP Group (the largest company in Thailand). Recently, the company purchased 185,000 square kilometers of land nearby and built a second plant. We hope to introduce pharmaceuticals and medical devices produced at this new plant, which will have production lines for injectable, tablet, spray, and patch formulations, through licensing-in or technology transfer.

Beijing Tide Pharmaceutical Co., Ltd. has grown to become one of the leading pharmaceutical companies in China. It has more than 2,000 employees and has been growing rapidly in recent years. In particular, it is the largest company in China in fat emulsion and topical patch products. We are still a major shareholder of Beijing Tide Pharmaceuticals, holding more than 11% of the company’s shares. Since 2009, LTT and Beijing Tide Pharmaceutical Co., Ltd. have continued their capital and business alliance and have cooperated in research and development.

The Strengths of Beijing Tide Pharmaceutical Co., Ltd.

1. Selling Ability

They do not use distributors, and own more than 1,300 in-house MRs sell pharmaceuticals. More than 90% of our MRs specialize in medicine and pharmacy, enabling academic sales. Based on 34 sales offices nationwide, they cover every province, city, and autonomous region in China (more than 3,700 hospitals nationwide).

2. Technological Strength

In 2007, they met Japanese GMP standards and became the first Chinese company to receive the “Certificate of Foreign Manufacturer of Pharmaceuticals and Sterile Pharmaceuticals” from the Ministry of Health, Labor and Welfare of Japan. They also have a track record of exporting pharmaceutical products to Japan (we still export to major Japanese pharmaceutical companies as OEM). Currently, they have production lines in operation for injections, tablets, dispersions, and topical patches. In particular, they have the largest production facilities in China for fat emulsions and poultices. Recently, the company has also been focusing on the development of new drugs, and has licensed out a new drug for pulmonary fibrosis to a U.S. company, which is currently conducting clinical trials.

3. Closeness and Reliability with Japan

The International Department has many employees who are fluent in Japanese. In addition, most of the pharmaceutical products they currently market are in-licensed from Japan, and we pay contractual fees (royalties, etc.) to Japanese companies based on the contractual agreements. Many Japanese companies that have done business with Beijing Tide Pharmaceutical Co., Ltd. have earned high profits from them.

4. Strong Ties to The Government and Major Hospitals

They have strong connections with the government and major hospitals through our China-Japan Friendship Hospital and their home university pipeline. As a result, they have strong competitive and bargaining power in negotiations with authorities, bidding auctions, and insurance coverage.

5. Compliance

A Compliance Department has been established in the Legal Division to ensure compliance with international standards.

6. Bidding

They have personnel deployed in each administrative region to obtain bidding information promptly. When soliciting bids, government and hospital experts investigate the credibility of a company and the quality of its products, and in this respect, Taide has a great advantage.

7. Business Expansion

Recently, they have continued to grow into a comprehensive medical and health care company, not limited to pharmaceuticals. For example, they have formed alliances with other companies in the fields of health foods, cosmetics, and over-the-counter drugs, and have established strong sales channels for over-the-counter and prescription drugs through partnerships with a number of pharmacies. they have also established strategic cooperative relationships with a number of leading medical institutions in Japan and abroad to accelerate the research and development of new drugs in the area of intensive care.

Beijing Tide Pharmaceutical Co., Ltd.’s Focus Areas

Cardiovascular (especially microcirculation improvement), analgesic, respiratory, cancer, digestive, etc.