News | July 1, 2008

NovaMed Appointed By Pfizer China And Baxter China As Their Exclusive Strategic Partner For Selected Oncology Products In China

NovaMed Pharmaceuticals Inc., a leading China-based pharmaceutical company which provides outsourced drug development and commercialization services for global multinational pharmaceutical and biotechnology companies and Pfizer China recently announced an exclusive strategic partnership in the oncology area. The agreement indicates that NovaMed will serve as Pfizer China's sole distributional and promotional partner for six of its oncology products throughout mainland China starting June, 2008. It is the first alliance of its kind for Pfizer China's oncology portfolio.

The partnership creates a window of opportunity in China's health care environment in which multinationals can strategically outsource established drugs to companies with wide and well-established distribution networks across the country. With cancer ranked the leading cause of mortality in China, an annual increase of 1.6-1.7 million cancer patients is expected in addition to the approximately 4.5 million existing oncology patients. The unique outsourcing model significantly increases the number of patients benefiting from clinically proven and effective therapies. NovaMed expects a 30-40% increase in hospital coverage of these six Pfizer China oncology drugs across China.

NovaMed has continued to strengthen its position in China's oncology market since its first oncology deal with Baxter China for three of its long-standing oncology products. With a total market value of RMB 40 billion, the oncology therapeutic area is the second largest in China, after the antibiotic market. Its current oncology portfolio offers a wide range of therapies across key disease areas including medical oncology, hematology and urology. NovaMed will also continue to pursue the licensing of oncology products from international companies– these include both products that have been launched in international markets (but are not yet available in China) and products which are currently still in the development cycle.

Mark Lotter, CEO and co-founder of NovaMed, commented, "NovaMed is committed to partnering with global pharmaceutical companies to help international drug brands achieve their full potential in an emerging market such as China and to allow a wider population of patients in China to gain access to best-in-class drugs. NovaMed has established a solid foundation for building an oncology portfolio which positions the company well in terms of its immediate, medium and long term presence in the oncology market in China."

Oncology is a rapidly growing therapeutic area internationally with the sales of cancer drugs expected to double at the rate of the global pharmaceutical market and reach USD 80 billion by 2012 according to a recent IMS report. "Pfizer China is delighted to have the opportunity to partner with NovaMed. NovaMed's oncology team excels in terms of its abundant distribution and marketing experience and expertise, as well as its solid relationships with key oncology centers and thought leaders across the nation. All of these factors will greatly aid the promotion of oncology products, help bring more treatment options to the market and ultimately benefit a larger proportion of oncology patients," said Xiaoyu Sun, Associate Director of the Commercial and Retail Business Department at Pfizer China.

According to Thomas Zan, Director of Critical Care Business Unit at Baxter China, "NovaMed's in-depth knowledge and understanding of China's oncology environment is the key to its success. We have been very impressed with NovaMed's strong and dedicated management team and the uniquely sustainable business model it offers to China's oncology market. Since signing the deal for three of our oncology products in September 2007, NovaMed has demonstrated its solid execution capability through building extensive alliances with oncology distributors and partners across the country and facilitating hospital listing, tendering and pricing."

NovaMed's exclusive distributional and promotional agreement with Pfizer China allows access to six of Pfizer's oncology products within China: Adriamycin, Daunoblastina, Leucovorin, Methotrexate, Estracyt and Farlutal. The three oncology products from Baxter China are Holoxan, Mesna and Endoxan.

These key partnerships have effectively catapulted NovaMed into becoming a highly competitive force in China's oncology market. Together with its leading commercial team, it continues to be an attractive target as a partner for global companies who wish to maximize their presence in China.

About NovaMed
NovaMed Pharmaceuticals was founded in August 2005 to provide one-stop-shop service for global pharmaceutical companies and brand owners looking to leverage cost advantage and achieve optimal market potential in China. Through a directly managed sales organization of 300 people strong and growing and an exclusive network of best-in-class research, development, regulatory and distribution partners, NovaMed has built viable commercialization models for products at different stages of their life cycle. These include products already commercially available in China, internationally approved products not yet registered in China, and in-license late stage development compounds. For more information, visit www.novamed.com.cn.

SOURCE: NovaMed Pharmaceuticals Inc.