 China key link in global 'wellness' innovation
(China Daily)
Updated: 2009-03-23 07:43
Otsuka Pharmaceutical Group has been closely linked with China since the 1981 establishment of China Otsuka Pharmaceutical Co Ltd, a pioneering partnership between a foreign and Chinese company in the domestic pharmaceutical industry. Backed by 106 separate affiliates in 18 countries and regions around the world, the pharmaceutical giant now provides a wide range of proprietary pharmaceutical products, clinical nutritionals (intravenous solutions), diagnostic agents and medical foods, as well as several food and beverage products. Set up in 1921, the company initially produced and sold chemical raw materials. In 1946 it entered the pharmaceutical business with a range of intravenous (IV) solutions. It embarked on new drug evaluation and development throughout the 1970s and, in 1980, it unveiled its first proprietary drugs - Mikelan and Meptin. Its global expansion started in the early 1970s, with the opening of an overseas office in the US. The move was planned as an initial step toward developing an international research and development network and expanding its pharmaceutical business. Following its successful launch in the US in 2002, Otsuka subsequently brought its drug ABILIFY to China and more than 60 other countries across the world. In 2003 it inaugurated the Otsuka Beijing Research Institute to develop new medication for under-researched illnesses. Otsuka believes its worldwide reach and common strategies have benefited many in the markets it serves. "In recent years, we have been promoting the globalization of this business through worldwide initiatives for the treatment of illnesses and the promotion of day-to-day wellness," said Masayuki Umeno, vice president of the group and executive director of the Otsuka International Asia Arab business division. Otsuka Pharmaceutical's success has come from its unique combination of businesses. With pharmaceuticals as one pillar, Otsuka has developed the promotion of wellness through its "neutraceuticals" (nutrition + pharmaceuticals) business as its other pillar. Otsuka's consumer product business takes advantage of the expertise gained in the course of pharmaceutical research and development. Neutraceutical products, such as the ion supply drink "Pocari Sweat" introduced in 1980, and the subsequent release of the balanced nutrient food "CalorieMate", have created entirely new business categories. "Consumers today are more concerned than ever before about preventing illness and maintaining their day-to-day health. Starting with the launch of Pocari Sweat, Otsuka has focused its capabilities and ideas on creating scientifically-based products for the benefit of consumers," Umeno explained. One of the best-known of Otsuka's brands, Pocari Sweat aims to replenish many of the electrolytes, which are lost through sweating during strenuous physical activity. Market presence Otsuka has two bases in China for its Pocari Sweat business: Tianjin Otsuka Beverage Co Ltd, and Otsuka Sims (Guangdong) Beverage Co Ltd. Recently, Otsuka developed a number of new products, including "SOYJOY," which was launched under a shared brand name in Japan, the US and China. It is now distributed in a total of seven different countries. SOYJOY is a baked fruit bar made from whole soybean powder. Promoted as a tasty and healthy food in bar form, its self-contained format allows it to be eaten anytime and anywhere. Soybeans are sometimes called "field meat" in Japan because of their high-quality and easily available protein. In the US, the Food and Drug Administration claims that consumption of at least 25 grams (6.25 grams/meal) of soy protein per day may reduce the risk of heart disease. Otsuka's SOYJOY partner in China is VV Food & Beverage Co Ltd, which produces some of the top-selling soy milk powders in the country and has been keen to develop its relationship with the Japanese pharmaceutical giant. "China has been always our main business focus in Asia," says Umeno, addressing the reasons behind the 1981 launch of China Otsuka. Following its initial introduction of plastic IV solution bags into the country, it has continued to consolidate its business in China. The group now has 17 separate companies in China - including market leaders in IV solutions, pharmaceutical products, medical equipment, foods and beverages. The group continues to place tremendous emphasis on research and development and set up Otsuka (Shanghai) Food Safety Research & Development as a pioneer in the food regulatory business. The group has also established Otsuka (China) Investment Co Ltd to support and monitor each company and centralize business acumen across the board in China. Commenting on the company's approach to China, Umeno said: "In line with our corporate philosophy of 'Otsuka's people creating new products for better health worldwide' - our aim has been to contribute to the people of China by bringing into the domestic market our new technology and products. "Our consumer products business responds rapidly to changes in the social environment, including health consciousness, distribution systems and globalization. We promote product development and marketing activities that are scientifically-based and incorporate a global perspective. Overall, we work to contribute to the health of consumers as a leading wellness company." Otsuka has consistently acted in the interest of global wellness, while working in partnership with local communities and in harmony with the environment. Charity efforts After the May 2008 earthquake in Sichuan province, Otsuka responded rapidly by helping in the relief effort and donating intravenous solutions, following a practice it has maintained in disaster situations across the world. For the past 10 years, it has also been operating the Otsuka Welfare Clinic in Peshawar in Pakistan, providing free healthcare to refugees. www.otsuka-global.com
(China Daily 03/23/2009 page8) |
