Globalization of Traditional Chinese Medicine (TCM) Presented at Chinese Bioscience Association

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Learn more about the globalization of traditional Chinese medicine from L.E.K. VP Helen Chen.

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Globalization of Traditional Chinese Medicine (TCM) Presented at Chinese Bioscience Association

  1. 1. Chinese Bioscience Association ^ìÅâä~åÇ _~åÖâçâ _ÉáàáåÖGlobalization of Traditional Chinese _çëíçå `ÜáÅ~ÖçMedicine (TCM) içåÇçå içë=^åÖÉäÉë jÉäÄçìêåÉ jáä~å jìãÄ~á jìåáÅÜ kÉï=aÉäÜáThe materials contained in this document are intended to supplement a kÉï=vçêâdiscussion. These perspectives are confidential and will only be meaningfulto those in attendance. m~êáë p~å=cê~åÅáëÅç pÜ~åÖÜ~á páåÖ~éçêÉ póÇåÉóiKbKhK=`çåëìäíáåÖ=iáãáíÉÇI=cäççê=PQI=`fqf`=pèì~êÉI=NNSU=k~åàáåÖ=oç~Ç=tÉëíI=pÜ~åÖÜ~á=OMMMQNI=`Üáå~== qçâóçqW=USKONKSNOOKPVMM===cW=USKONKSNOOKPVUU===ïïïKäÉâKÅçã têçÅä~ï
  2. 2. DRAFT Introduction to L.E.K. ConsultingL.E.K. Consulting is a leading global strategy firm with a strong focuson life sciencesGlobal Capability  20 offices worldwide, including 2 in China  Founded in 1983 in London  1000+ consulting professionals; 100+ partners  Advised 25% of largest 200 companies globally  Highly differentiated from peer consultancies in analytically driven decision-makingLife Sciences Experience & Expertise Leading advisor to life sciences companies around the world with over 2,800 engagements; advised 9 of the top-10 pharmas, 4 of the 5 top global biotechs and more than 150 biotechnology companies More than US$120bn in transactions in life sciences Awarded Healthcare Sector Adviser of the Year 2010 by Acquisitions Monthly and Consultant of the Year at the 2011 Health Investor Awards On the ground capabilities and experiences in China; over 50 projects each year in China life sciences and healthcare CONFIDENTIALTCM Market Overview. 1
  3. 3. DRAFT Globalizing Traditional Chinese MedicineTCM has evolved over thousands of years in China. Practitioners use herbs,acupuncture, and other methods to treat a wide range of conditions, whileformulated TCMs are also available today Sanqi 三七 Danshen dripping pills 丹参滴丸 Astragalus 黄芪 Danhong injection Sterculia 胖大海 丹红注射液 Bezoar tablet 牛黄解毒片 Bezoar 牛黄 Salvia Rubescens tablet 丹参 冬凌草片 6,000 different medicinal substances, TCM Over 13,000 formulated with 600 widely used time-honored practitioners TCM products therapeutic herbsSource: L.E.K. research and analysis CONFIDENTIALTCM Market Overview. 2
  4. 4. DRAFT Globalizing Traditional Chinese MedicineTCM is mainly used for the treatment of cardio-cerebral vascular, oncologyand respiratory ailmentsBreakdown of China TCM Rx drugs  Cardiovascular cerebral vascular treatments isby select therapeutic areas (2010) the single largest therapeutic area for TCM Percent 100 4 Others - TCM injections mainly benefits from its fast Dermatology efficacy with safety extracts from TCMs, and 2 3 ENT 4 better value for money compared to western 80 5 Neurology medicines 6 Urological 8 Gynecology - Oral drugs are typically used for long-term 60 Gastrointestinal treatment, such as prevention or post- 12 Musculoskeletal surgical therapies of hypertension, stroke, 16 Respiratory and disorders of microcirculation 40 Oncology  Oncology therapies are mostly in supportive care and typically enhances the patients’ quality of life 20 37 CCV  TCM Rx drugs for respiratory mainly target at 0 fever and infection treatment, cough relief, and throat medicationSource: Broker report, L.E.K. analysis CONFIDENTIALTCM Market Overview. 3
  5. 5. DRAFT Globalizing Traditional Chinese MedicineChina’s 12th Five Year Plan (2011-15) for TCM industry proposed establishingresources, standardizing technical practices, and improvinginternationalization  Wider coverage of TCM medical resources Establishing resources  Increased number of TCM practitioners  Improved patient acceptance of TCM treatment  Set up of nation wide and provincial TCM R&D institutes for infectious disease prevention and treatment  Set up TCM department in infectious disease specialized hospitals  Enhanced clinical research on specialized therapeutic areas  Continue to develop systematic research on TCM theory, diagnosis Technical technology and medical efficacy assessment standardization  Build TCM clinical research database and a nation wide platform for information sharing and management  Cooperation with foreign government and international organizations Inter- on TCM development nationalization  Better promoting TCM’s international recognition and adoption  Build international TCM research and development basesSource: 12th Five Year Plan of TCM Industry, L.E.K. analysis CONFIDENTIALTCM Market Overview. 4
  6. 6. DRAFT Globalizing Traditional Chinese MedicineThere are already traditional Chinese medicine ingredients developed throughthe Western pharmaceutical pathway Company ExamplesCompanies Product / History ingredient  Qinghaosu, has been used to treat fever for over 2000 years  1972: Artemisinin extracted and purified from Qinghaosu (Artemisinin)  1991: Novartis and China Academy of Military Medical Sciences co-developed Coartem, a fixed dose artemisinin- based combination therapy for falciparum malaria treatment  1998-2009: Western country approvals  Paclitaxel is a mitotic inhibitor used in cancer chemotherapy. It was isolated from the bark of the Pacific yew tree and (Paclitaxel) discovered in a U.S. National Cancer Institute program at the Research Triangle Institute in 1967  Paclitaxel was developed commercially by Bristol-Myers Squibb (BMS) in 1993  Paclitaxel is now widely used as treatment for oncology, such as carcinoma of the ovary, breast cancer, non-small cell lung cancer, AIDS-related Kaposi’s sarcomaSource: Company Website, L.E.K. analysis CONFIDENTIALTCM Market Overview. 5
  7. 7. DRAFT Globalizing Traditional Chinese MedicineBoth Europe and the United States have outlined registration pathways toallow botanicals to be registered as Rx and OTC drugs  As of April 2011, medicinal products containing herbal Europe substances/preparations must fall within three categories - traditional medicinal use - well-established medicinal use - stand alone and mixed application  One TCM drug from China has received marketing authorization under the new regulations so far, with about ~10 drugs in application  FDA issued the Guidance for Industry Botanical Drug Products which United States sets out the framework for a new category of licensed drugs – botanical drugs – in June 2004 - waiver for preclinical pharmacology / toxicology studies - should provide its safety and efficacy through randomized, double blind, and placebo-controlled (or dose-response) studies  So far, no TCM drugs has successfully registered in FDA as botanic Rx drugs yet; though a number of companies are in process. Examples include Tasly, Hutchison MediPharm and LuyeSource: EU, US FDA, L.E.K. analysis CONFIDENTIALTCM Market Overview. 6
  8. 8. DRAFT Globalizing Traditional Chinese MedicineBesides Chinese companies, a number of multinational pharmas have begunto explore opportunities in botanicals and Chinese medicine Company Examples  GSK unveiled its plan to open a new Discovery Performance Unit (DPU) in China to look at traditional Chinese medicines in February 2012 “… Within our discovery organization in China we have created a DPU that will marry traditional Chinese medicine with modern drug discovery and clinical efficacy. With modern technology, we have the potential to yield new molecular entities with significant efficacy …” Chairman, R&D, GSK  In 2009, Novartis invested US$1bn in expanding its R&D center in Shanghai, which specializes in basic research and development of new drugs including small molecule and biological medicines to treat diseases that are highly prevalent in China - one of the objectives of the expansion is to allow Novartis to combine modern drug discovery approaches with those of traditional Chinese medicine that have been used to treat patients in China for thousands of yearsSource: Telegraph, Pharmaceutical Technology, L.E.K. analysis CONFIDENTIALTCM Market Overview. 7
  9. 9. DRAFT Globalizing Traditional Chinese MedicineQuestions and discussion about globalizing traditional Chinese medicine What is the role of Chinese medicine and botanicals in the global pharmaceutical market? What are the companies doing in advancing this field? Should Western pharmas invest in botanical R&D? How can pharmas ensure consistency and product quality? Will the US and Western physicians accept these as innovative drugs? What are the concerns? CONFIDENTIALTCM Market Overview. 8
  10. 10. DRAFTeÉäÉå=`ÜÉåiKbKhK=`çåëìäíáåÖÜKÅÜÉå]äÉâKÅçãEUSONF=SNOOPVMM EíFEUSONF=SNOOPVUU EÑFäÉâKÅçã CONFIDENTIALTCM Market Overview. 9 9

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