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Glaxosmithkline Formed an Alliance with Alibaba to Capture China HPV Vaccine Market

GlaxoSmithKline’s Cervarix vaccine is losing the United States market and Europe market to Merck’s Gardasil vaccine, but it desires to acquire some tons from China market. To achieve that, they have established a partnership with Alibaba, China’s e-commerce giant.

The new alliance reinforced on Ali Health platform of Alibaba, which is accessible on the mobile app named Taobao. This enables consumers to approach online cervical cancer and HPV consultation services or education information from either smart bots or professional healthcare providers.

GlaxoSmithKline mentioned in a press release that this mobile app also permits patients to fix an appointment for Cervarix vaccination at area healthcare centers. The platform is anticipated to comprehend 1,500 such healthcare centers in around 100 predominately populated metropolises like Guangzhou, Shanghai, and Beijing by the end of this year.

The bivalent vaccine couldn’t do very well till now. Its sales were slumped by 26 percent to USD 151 million in the year 2014, and in the year 2016 sales were just USD 95 million, besides its backdown from the United States market last year owing to very low market demand. China market could be a rescuer for Cervarix vaccine, which was barely established after being permitted as the first ever HPV vaccine for the china in July, last year.

Cervarix vaccine was first to commercialize, but its competitor, Merck’s Gardasil, is merely a couple of months behind, having apprehended a sanction from China Food and Drug Administration (CFDA) in May. Sales of Gardasil9 and Gardasil have been progressively rising, from USD 1.74 billion in the year 2014 to USD 2.17 billion in the year 2016.

For China market, under an elite distribution contract with veteran local vaccine company named as, ZhiFei Biological Products, Merck anticipates to sell Gardasil vaccines worth USD 166 million for the initial year after its authorized launch, succeeded by USD 216 million in the second year and USD 268 million in third.

Cervarix vaccine defends against two kinds of HPV contamination, while Gardasil vaccine hinders four kinds, although the further two types direct to genital verrucas, not cervical cancer. Currently, both Cervarix and Gardasil vaccines are permitted by the China Food and Drug Administration (CFDA).

However, there is some advantage for GlaxoSmithKline. According to the dictated price GlaxoSmithKline has contacted with several local authorities, the price of Cervarix vaccine is 580 Chinese yuan per shot, entailing the three- shot treatment costs to 1,740 Chinese yuan which is approximately USD 260. Patients will be paying marginally extra following additional charge. Though Gardasil vaccine is yet to be launched in the China market, has attained the value of 798 Chinese yuan a shot, or around 38 percent elevated than that of Cervarix vaccine, with few local authorities.

Currently, Cervarix is permitted for vaccination of younger citizensIn China (women ages 9 to 25) whilst Gardasil vaccine is for women with age between 20 to 45 years. The majority of health authorities, involving the World Health Organization and the Centers for Disease Control and Prevention (CDC), suggest early HPV vaccination for young adults and teenagers.

At the present, with the assistance of Alibaba, an e-business platform with a massive existence in China, GlaxoSmithKline wish to win big. Cervical cancer vaccination and prevention is just the primary step of the collaboration between these two giants. GlaxoSmithKline China has revealed that they will maintain to cooperate in broader adult vaccination and pediatric services in the coming years.

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