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    Merck to invest more in country, sharpen focus on R&D, local tie-ups

    By LIU ZHIHUA | China Daily | Updated: 2024-07-30 09:30
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    Peter Guenter, a member of the executive board and CEO of Healthcare at Merck. [Photo provided to chinadaily.com.cn]

    "We are very active in China, having been in China for more than 90 years. We are conducting our own R&D in China, and also look at all these local partners for collaborations. We have done a lot of local collaborations with Chinese biotech companies, and hopefully, we can do even more of that in the future," he said.

    China is the second-biggest pharmaceutical market in the world, but still has a large growth potential. Within Merck, the China business takes up a double-digit share of the global contribution and is of great strategic significance.

    There are three sectors where the company operates — life science, electronics and healthcare. In the past 10 years, Merck has invested around 6 billion yuan ($820 million) in China. Since last year, the company has closed two licensing deals with Chinese companies, one with Hengrui Pharmaceuticals and the other one with Abbisko Therapeutics, bringing Chinese innovations to the global stage and to benefit patients worldwide.

    The executive, however, said concentration of efforts on certain known targets in new drug R&D, which tends to cause unhealthy competition, is a challenge facing the Chinese pharmaceutical industry.

    He further said Merck is always ready to help China to build a multilayered reimbursement or insurance system, so as to expand insurance coverage for drugs and treatments, thereby providing more rewards for innovations.

    In light of the complexities and geopolitical tensions in the world, Guenter called for more collaboration among countries, and among industries.

    "Only through partnerships and working together will we be able to solve the big challenges of mankind. If you think about climate change or new treatments for patients, collaboration is the right recipe and the right answer," he said.

    China will improve the mechanisms for supporting the development of innovative drugs and medical equipment, according to the resolution on further deepening reform in a comprehensive fashion to advance Chinese modernization, which was adopted at the recently concluded third plenary session of the 20th Central Committee of the Communist Party of China.

    The country will also further reform medical insurance payment models and improve major disease insurance and medical assistance schemes, the resolution said.

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