Johnson&Johnson takes on China

Published on Author degnank17

As stated in a previous article, biotech companies are beginning to flourish in China. With the new development in cancer drugs, China is becoming increasingly appealing to the medical industry. Johnson & Johnson, a leading company in world health care, collected approximately $74 billion in revenues during 2014. The CEO of the corporation, Alex Gorsky, announced that the company is looking to expand in China and Japan. Meanwhile, the company has already taken root in Shanghai.

Gorsky explains that medical inventions are known to be imported in China, when they should be originating there because of competitive manufacturing costs. China is home to approximately fifty percent of the lung disease patients in the world. These citizens are in desperate need of increased health care and would benefit greatly from escalated medical resources in China. Johnson & Johnson is looking to develop new medical technology for the Chinese market and world markets.

According to Gorsky, the company is planning on dedicating their resources to other research fields such as Alzheimer’s and cardiovascular disease. If Johnson & Johnson can use even a fourth of the funds they would use in the U.S. to study these diseases, they may be able to utilize the extra funds to discover cures. By relocating the biotech resources, the corporation is getting a head start in a possible health care revolution for China.

Source: http://www.wsj.com/articles/johnson-johnson-looks-to-expand-in-asia-1428096781?tesla=y

3 Responses to Johnson&Johnson takes on China

  1. Isn’t it a lot more profitable for companies to sell drugs in the United States than the rest of the world? What are the profit margins for selling a drug in China versus selling a drug in the United States?

  2. The fact that China is home to over 50 percent of lung disease patients suggests that there are air pollution problems and/or smoking problems in China. Instead of looking to develop drugs to help lung disease patients, China should implement policies that lead to cleaner air.

  3. What of the topic of Friday’s class? Under the status quo, where is the payment source that can support higher pharmaceutical sales?

    In what areas does China have comparative advantage with pharma? Is manufacturing one of them? There are areas that may surprise you!