Reports: UK's GlaxoSmithKline to Enter Chinese Wholesale Market

According to Chinese state media, UK-based drug major GlaxoSmithKline has received a licence for a distribution network in China. The reports claim that the company is to enter the wholesale sector initially, following the country's liberalisation of its retail pharmacy market in December.

The apparent move indicates that Glaxo is seeking to bolster its local sales presence, as the country's drug sector remains comparatively undeveloped. Nevertheless, authorities are attempting to encourage sector development, and the OTC market is expected to more than double, increasing from US$2.8bn in 2002 to US$6.2bn by 2007, with the prescription market rising by over 30% over the same period.

Glaxo's local operations appear well placed to exploit this trend, as the company already has two large manufacturing plants in Tainjin and Suzhou and five local joint venture companies. Meanwhile, the reports suggest that only a few multinational drug companies have so far moved to develop their pharmacy market presence in China.