InterfaxChinaPharmaceuticals&HealthTechnologiesWeekly©2010InterfaxChinaLtd.Suite1601,WilsonHouse,19-27WyndhamStreet,Central,HongKong,ChinaTel:+85225372262,facsimile:+85225372264e-mail:china@interfax.comhttp:–Oct.20,2010VolumeVI,Issue38CONTENTSSummaryofthisweek'sreport3TOPSTORIES4NSFC,USNIHsignmedicalresearchagreement4Biotechamong7strategicindustriestobedevelopedovernextdecade4Ningxiatopioneerintegratedurban,ruralmedicalinsurance5GENERALHEALTH6SFDA,MoHissuediabetesdrugwarning6Beijingtogive2mlnfreeflushotsin20106PHARMACEUTICAL7HebangGrouppharmaparkbreaksgroundinZiyangCity7China'sAPIexportscanweatherappreciationofrenminbiin2010-analyst7YilingPharmaplans$34mlnR&Dcenter8LerentangPharmastartsoperationsatShijiazhuangCitylogisticscenter8LotusPharmasubsidiarysecuresdiabetesdrugpatent8BIOTECH9LivzonPharmaplans$301mlninvestmentinnewbiofacilities9TCM10WohuaPharmapredicts$15mlnlossin201010SanjiuMedicaltosellstakeinCanadasubsidiary10ZhendongPharmaplansShenzhenGEMlisting11Beijingplans$18mlnsupportpackageforTCMprojects11MEDICALEQUIPMENT12Hemodialysisequipmenttradeworth$80mlnJan-Aug12–Oct.20,20102HOSPITAL13Chinatestselectronicmedicalrecordsystems13Beijinglaunchesdrivetoimprovepediatricservices13SURVEYI14Chinapharmafirmsanxiousaboutnewstandards14SURVEYII15China'sbioCMOindustryhasyettomature15EMERGINGCOMPANYPROFILE17ShanghaiXinxingMedicineCo.Ltd.17COMPANYPROFILE18ShandongXinhuaPharmaceuticalCo.Ltd.18EVENTS22InternationalSummitofChinaPharmaceuticalIndustry–Hangzhou201022WEEKLYMONITORS-CHINA23WEEKLYMONITORS-China23INDUSTRYREPORTS-CHINA24Industry-specificReports24RESEARCHSERVICES25CustomResearch25–Oct.20,20103Summaryofthisweek'sreportIntopstoriesthisweek,theStateCouncilhasdesignatedbiotechnologyasoneofsevenstrate-gicemergingindustrieswhichChinaaimstodevelopoverthenextdecade.Chinaalsointendstobuildthesectorintoakeynationalindustryoverthenexttenyears,withplanstopromotetheresearchanddevelopment(R&D)ofbiologicaldrugs,vaccines,testkits,chemicaldrugsandmoderntraditionalChinesemedicines(TCM)forthetreatmentofseverediseases.TheNationalNaturalScienceFoundationofChina(NSFC)andtheU.S.NationalInstituteofHealth(NIH)formedamedicalresearchpartnershipthisweek.NIHwillkick-offthecollabora-tionwitha$3millioninvestmenttosupportresearchinfieldsincludingcancer,allergiesandin-fectiousdiseases.TheNingxiaHuiAutonomousRegionhasbecomethefirstprovincial-leveladministrativere-gioninChinatopioneeranintegratedurban-ruralmedicalinsuranceprogram.Thesystemisexpectedtobeinplaceby2012.TheInterfaxcommentaryexaminesthedevelopmentinana-tionalcontext.GeneralhealthnewsandtheStateFoodandDrugAdministration(SFDA)andMinistryofHealth(MoH)haveissuedasafetywarningforrosiglitazone,adiabetesdrug,followingcon-cernsoveritseffectonthecardiovascularsystem.Anumberofmeasureshavebeenintroducedtocontroldistributionofthemedicine.Inthepharmasector,agroupofinvestorsincludingHebangGroupCo.Ltd.hasstartedcon-structionofaRMB3billion($450.3million)pharmaindustryparkinSichuanProvince'sZi-yangCity.Ascurrencyissueshotupintheinternationalarena,ZhouJian,ananalystfromHealthoo.com,toldInterfaxthisweekthatChina'sexportsofactivepharmaceuticalingredients(API)willbeabletoweatherrenminbiappreciationofabout3percentin2010.APIexportsformthebulkofChina'shealthcareproductexports,andexportsoflowvalue-addedAPIswillbethefirsttosuf-ferwhenitcomestothecrunch.Inbiotechnews,LivzonPharmaplanstoinvestRMB2billion($301million)overthenextfivetoeightyearsinarangeofnewbiotechfacilitiesinGuangdongProvince'sZhuhaiCity.TheIn-terfaxcommentaryanalyzeswhydomesticcompaniesareflockingtothebiotechsector.Selectedhospitalsaretakingpartinaprogramtotestelectronicmedicalrecord(EMR)systems,theMinistryofHealth(MoH)announcedOct.14.ThenewsmarksanimportantstepinChina'seffortstostandardizeandcomputerizemedicalrecords.Ourtwosurveysthisweekfocusontheinter-relatedtopicsofChina'snewGoodManufacturingPractice(GMP)regulationsanditsnascentbiotechnologycontractmanufacturingindustry.Ifyouhaveanyquestions,commentsorsuggestionsregardingChinaPharmaceuticalandHealthTechnologiesWeekly,pleasecontacttheeditor,OrlandoBowieatorlando.bowie@interfax.cn.–Oct.20,20104TOPSTORIESNSFC,USNIHsignmedicalresearchagreementTheNationalNaturalScienceFoundationofChina(NSFC)andtheU.S.NationalInstituteofHealth(NIH)havesignedamemorandumofunderstanding(MoU)tocooperateonmedicalre-search,anewspaperpublishedbytheMinistryofHealth(MoH)reportedOct.14.AccordingtoJiankangBao,thetwosideswillconductjointresearchandtrainingpro-grams,exchangestaffandinformation,andholdconferences.Thecooperationwillinvolveallthebasicmedicineandappliedbiomedicine-relateddepart