The WSJ reports that Sanofi expects to see "double-digit sales growth" in the next five years in China, and plans to expand its animal health and vaccine business in the country. The French pharmaceutical company currently has six plants in China, but the addition of four new plants will allow it to expand its production of pharmaceuticals, vaccines and consumer health-care and animal-care products, according to Sanofi's chief executive Christopher Viehbacher (see where he appears in the top 50 most influential people in vaccines).
China is often seen as an emerging market with a high growth potential. However, there are many obstacles to be faced when getting products to market in China as well as the other emerging markets (see Pharma going global needs to think local in emerging markets). The company faces pressure on pricing and obstacles to getting regulatory approval for clinical trials, as well as labour challenges when expanding into smaller cities.
What do you think are the main challenges faced by pharmaceutical companies when expanding into emerging markets?