2003 – Biogen (a multiple sclerosis company) merges with IDEC (an oncology company) 2007 – Exploration into China market begins
- Sr. Leadership, with support of Executive Management, visits China, meets with similar companies and business consultants; starts tapping into network with China experience or connections to learn as much as possible about this vast, diverse country and the complex government regulations 2008 -Detailed P&L forecasting, including NPV analysis, is completed and presented to Board of Directors along with entry strategies for multiple products. Expansion into China market is approved Corporate “Rep Office” is established. Office lease is secured and fit-out is completed. First employee, a General Manager, is hired and relocates to Shanghai. He is a Taiwanese-national who speaks fluent Mandarin. Subsequent employees are hired over the next few months including secretary, office manager, Clinical Director and Regulatory Affairs Director. 2009 – China office officially opens
2010 – Current CEO, Jim Mullen, a big proponent of Asia expansion, steps down in January. New CEO, George Scangos, takes the helm in July 2010. China Clinical trial applications (CTAs) are submitted for oncology, multiple sclerosis and ALS products. Regulatory approval for these CTAs to start local trials (a requirement for market approval) is expected to take 12 months. 2011 – Scangos announces that oncology division will be deprioritized and sold off. Went on commericial 2012—CEO not in favor of Asian market
2013 – In January, announcement that ALS drug has failed and program is immediately terminated. In April, decision to close China office is made. Hurdles in China Market –
High Barriers to Entry (complicated operating environment)
Complex and very long regulatory pathway t for drug approvals Extremely competitive for good talent leads to high turnover Difficult political environment; bribes still commonplace
Big MNCs have the incumbents'...
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