Pharmaceuticals

Fri, 05/14/2010 - 17:28

Roche Diagnostics, the leading global in vitro diagnostics (IVD) firm, has grown rapidly in China over the past few years. The company's new chief operating officer (COO) Daniel O'Day talks with Interfax about growth drivers, strategic focus and challenges the company faces in China.

Daniel O'Day, COO of Roche Diagnostics

Shanghai. May 13. INTERFAX-CHINA - Roche Diagnostics expects its business in China to grow rapidly due to continued government investment into health care infrastructure, Roche Diagnostics' chief operating officer (COO) told Interfax in a recent interview in Shanghai.

"We hope China will become Roche Diagnostics' fifth largest market based on sales revenue over the next few years, up from eighth largest in 2009," Daniel O'Day said.

Roche Diagnostics first set up its subsidiary in China, Roche Diagnostics (Shanghai) Ltd., in August 2000 and the company has in recent years experienced sales growth of close to 50 percent year-on-year.

This growth is expected to continue as China begins investing heavily in health care infrastructure until 2012 under the national health care reform, O'Day said.

Roche Diagnostics is the biggest player in the in vitro diagnostics (IVD) market, both in China and globally. It currently has a 20 percent share of the global IVD market.

According to O'Day, a comprehensive portfolio of innovative products, technological know-how and strong automated laboratory analyzer sales have allowed the company to achieve its dominant position. Its clients range from medical institutions and laboratories to academic institutions and pharmaceutical companies.

Roche Diagnostics' presence extends to all major IVD product areas, including clinical chemistry, immunoassay, molecular diagnostics, diabetes care and tissue diagnostics as well as new technological applications like sequencing and cellular analysis. Immunoassays, or professional diagnostics, saw the fastest sales volume growth in China in 2009.

According to O'Day, China's health care reform and consequent efforts to improve health care infrastructure have facilitated this growth as all new hospitals are now required to be fitted with immunoassay laboratories.

"We also see tremendous growth potential in other areas like molecular diagnostics, particularly in blood screening and infectious disease monitoring for acquired immunodeficiency syndrome (AIDS) and human papillomavirus (HPV). Tissue diagnostics will likely see growth too as cancer care becomes more widely available in China," he said.

He cited the tissue diagnostic test for human epidermal growth factor receptor 2 (HER2) gene as an example. The test identifies patients suitable for Herceptin treatment, an antibody treatment for breast and stomach tumors which exhibit high HER2 levels, and provides doctors with information to help them prescribe appropriate medication, thereby improving treatment efficiency.

At present the company is in the process of registering the HER2 test with the State Food and Drug Administration (SFDA), Wong Fatt Heng, general manager of Roche Diagnostics Shanghai, told Interfax.

The company aims to improve testing and medical efficiencies as part of its strategy for China and the global market, O'Day added.

Automated systems which improve the efficiency of medical care by enabling a large number of samples to be analyzed in a short period will be critical to the development of China's health care infrastructure as its population increases, according to O'Day.

"As cardiovascular disease, diabetes and cancers become more common in China, we are also seeing an increase in the use of more medically efficient tests, for instance, Roche Diagnostics' NT-proBNP test for heart failure," he said.

The NT-proBNP test enables doctors to accurately diagnose heart failure, a condition that has often been misdiagnosed, according to a Roche Diagnostics' announcement on May 12. In addition, the test can help doctors determine if patients need to be hospitalized and when they are fit to be discharged, thus freeing up hospital resources.

A recent study conducted by the American Journal of Cardiology demonstrates that use of the NT-proBNP test can lead to a 58 percent drop in cardiac ultrasound tests and a 12 percent reduction in the duration of hospitalizations.

More than 80 percent of Roche Diagnostics' products are currently sold in the Chinese market and the company intends to introduce more.

"The biggest challenge for Roche Diagnostics in China is in retaining a talented and motivated workforce," O'Day said, adding that Roche Diagnostics Shanghai has seen a 25 percent increase in staff in recent years.

Roche Diagnostics Shanghai now has more than 700 employees, and plans to hire 100 more before the end of this year.