Through expansion in South Africa, the company will work on distribution and development of drugs in the region.
Johnson & Johnson, the U.S. based healthcare titan, has an expansion plan for its R&D presence and business in Africa. The company envisions that the African market is likely to strengthen company’s medications sales over time.
This week, on Wednesday, the drug company inaugurated a new office in Cape Town, South Africa, which became part of a new global public health unit. Although the step is taken with a vision to support drugs distribution and development in Africa for all kind of diseases, which has put the citizens of Africa in excessive distress, including the treatments of HIV/AIDS however, CEO Alex Gorsky honestly expressed with the Wall Street Journal that the initiative does have a strategic angle annexed to it too.
He opined, “Part of it is building those kinds of relationships, those kinds of capabilities that over the long term are going to result in a very significant market opportunity for us.”
Through this step, the health care giant will work with government organizations as well as with the NGOs in order to set up a coherent drug supply chain. For example, the health care behemoth will work on expanding the distribution of drug to healthcare practitioners and local clinics and then subsequently coach them the basics of medical testing and the storage of the medicines.
Additionally, the health care titan anticipates setting up more offices in the countries like Kenya and Ghana as it has created in South Africa.
In the year 2015, the company’s infectious disease unit garnered the humungous $3.5 billion in sales across the globe. Therefore, Johnson & Johnson is actively involved in creating few new medications, which includes an injectable drug for HIV that is being operated alongside the competitor, ViiV Healthcare –which is an AIDS therapy joint effort by the drug giants Pfizer and GlaxoSmithKline.
In other news, on Wednesday, the health care giant announced of a future investment of $50 million in Tesaro Inc. and subsequently authorizing a prostate cancer treatment from the pharmaceutical company.
The health care giant’s subsidiary Janssen Biotech Inc. will be responsible for the development and the later commercialization of Tesaro Niraparib for the prostate cancer treatment. The said drug is once-daily oral treatment that, for the time being, is in the late phase of clinical trials for testing its efficiency in breast and ovarian cancer.
Under the umbrella of the deal, the health care giant will be liable of paying an upfront fee of $35 million to Tesaro and is likely to end up in paying around $415 million if certain commercial, development, and regulatory milestones are achieved, according to the news release of the company.
Moreover, Janssen is likely to be funding all the activities relating to the commercialization and development for the consumption of Niraparib in prostate cancer. Additionally, Johnson & Johnson has also been reported to have made an equity investment of $50 million in Tesaro.
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