GlaxoSmithKline will produce price-cutting anti-AIDS drugs in China

GlaxoSmithKline has signed an agreement to produce cheap anti-AIDS drugs in China, the Financial Times said, in a sign that the British company is rebuilding its influence in the wake of a corruption scandal that has damaged its reputation.
Under an agreement between ViiVHealthcare, GSK's AIDS drug division, and Shanghai-based DiSano Pharmaceuticals, the Chinese company will produce the active ingredient in GSK's anti-AIDS drug Dolutegravir to give more people in China and other developing countries access to the drug at "competitive" prices.
this partnership shows that GSK is beginning to move away from its "untouchable" status in China, and last year it was fined 297m pounds for bribing doctors to do drugs. The deal is in keeping with a public commitment made by GSK's chief executive, Sir David An, to continue investing in China to support the country's public health and economic growth.
GSK is working to take advantage of growing health spending opportunities in developing countries and reduce its dependence on mature markets in the U.S. and Europe, and China is critical to GSK's efforts. But analysts and industry executives say GSK's focus on restoring trust between the government and its customers in the country is likely to remain sluggish.
the first quarter of this year, GSK's drug and vaccine sales in China were 160m pounds, down nearly a fifth from two years ago. GSK's woes in China have added to the overall challenge facing the group, which is dealing with a decline in sales of its core respiratory drug in the United States.
strong growth in sales of anti-AIDS drugs has been a rare bright spot for GSK, which in May cancelled plans to partially spin off ViiV because of its strong performance. Analysts expect Tivicay's annual sales to peak at 1.8 billion pounds by 2020, and it is one of the latest generation of antiretroviral drugs to significantly extend the life of AIDS patients for those who have access to the drug.
ViiV is a joint venture between GSK and US pharmaceutical company Pfizer and Japan's Yanoyi, with GSK holding an 80 per cent stake. ViiV sells its drugs at lower prices in developing countries in response to past criticism from pharmaceutical companies that anti-AIDS drugs are too expensive for the poor to afford. (China Consulting Investment Network)