Pfizer Cuts Costs by Outsourcing Drug Distribution in China
NovaMed will sell and promote six anti-tumor drugs in China for Pfizer China, a subsidiary of big pharma company Pfizer Inc. (NYSE: PFE). The contract began in June 2008. Pfizer China projects that the out-sourcing will increase its coverage ratio in China hospitals for the products by 30% to 40%. NovaMed will be responsible for distribution and promotion of Pfizer China's adriamycin, dauniblastina, leucoyorin, methotrexate, estracyt, and farkutal. The marketing out-sourcing contract is a first for Pfizer China. Worldwide, its Pfizer parent company is determined to cut costs by increasing its use of out-sourcing, though this was expected to occur mainly in the manufacturing sector. Pfizer will close or sell 45 pharmaceutical factories, and to increase its total outsourcing from 10% currently to 30% in two years.