Novartis Expands China Partnership with Shanghai Pharma to Boost Eye Drug Reach

Highlights

• Novartis and Shanghai Pharma signed a strategic deal to market mature ophthalmology drugs in China.
• The partnership expands to smaller Chinese territories not previously served by Novartis.
• A new cardiovascular health platform was launched to support chronic disease management.
• Novartis aims to become a top-three multinational pharma company in China by sales in 2025.
• In 2024, Novartis posted $3.9 billion in Chinese sales—a 21% year-over-year increase.
• Shanghai Pharma’s CSO business contributed $1.1 billion in revenue, up 177% year-over-year.
• Novartis continues to invest in local infrastructure, including a radioligand therapy facility set to open by 2026.
• Ongoing collaborations also include deals with Sinopharma, Pfizer, and Gilead Sciences.

Strategic Expansion Targets Ophthalmology Market

As part of its ongoing strategy to solidify its position in China, Novartis has expanded its partnership with Shanghai Pharmaceuticals Holding Co., Ltd. (Shanghai Pharma). The Swiss drugmaker has signed a strategic agreement to promote its mature ophthalmology products in the Chinese market. According to Shanghai Pharma, the collaboration aims to extend the reach of Novartis’ drugs for ocular infections and glaucoma, particularly in underserved areas not currently targeted by the company.

Novartis plans to "leverage Shanghai Pharma’s omni-channel integrated marketing services and broad market coverage capabilities" to boost accessibility for these products. Although specific ophthalmic drugs included in the partnership were not disclosed, this move marks a significant step into a therapeutic area that is not traditionally a core focus for Novartis. The company’s primary areas of concentration remain cardiovascular-renal-metabolic, immunology, neuroscience, and oncology.

Strengthening an Established Relationship

This latest deal builds on a longstanding relationship between the two companies. On the same day the eye drug agreement was announced, Novartis and Shanghai Pharma also launched a new cardiovascular health management platform. The platform is designed to provide continuous patient support across the treatment timeline, including medication guidance, lab result tracking, and follow-up services.

Described as part of a “specialty pharmacy,” the initiative will now encompass treatments for skin diseases, breast cancer, high cholesterol, and high blood pressure. The companies noted that this digital platform represents a broader commitment to patient-centric care and chronic disease management in China.

Momentum from Recent Infrastructure and Regulatory Milestones

Novartis’ latest moves come in the wake of other strategic developments in China. In November 2024, the company partnered with Shanghai Pharma and C.Q. Pharmaceutical to construct a supply chain for radioligand therapies. This followed the groundbreaking of a 600 million Chinese yuan (approximately $83 million) manufacturing facility in Zhejiang province, which is expected to be operational by the end of 2026.

CEO Vas Narasimhan has emphasized China as one of Novartis’ top-priority geographies alongside the U.S., Germany, and Japan. He recently stated that the company may achieve its target of becoming one of the top three multinational pharmaceutical companies in China by the end of this year. Progress toward that goal includes the recent Chinese regulatory approvals for Kisqali as an adjuvant treatment for early-stage HR-positive, HER2-negative breast cancer and for Scemblix in newly diagnosed Philadelphia chromosome-positive chronic myeloid leukemia.

In 2024, Novartis generated $3.9 billion in sales from China, representing a 21% increase year-over-year at constant exchange rates.

Leveraging Local Partnerships for Long-Term Growth

While Novartis continues to expand its footprint in China, much of its success depends on strong local partnerships. Shanghai Pharma plays a pivotal role in this strategy. The company is one of China’s largest pharmaceutical distributors and contract sales organizations (CSO). Its CSO division managed 65 drugs in 2024, generating 8 billion Chinese yuan (approximately $1.1 billion) in revenue—a year-over-year increase of 177%, according to its annual report.

In addition to Novartis, Shanghai Pharma has signed recent commercialization deals with global pharmaceutical giants, including Pfizer (on vaccines) and Gilead Sciences (on long-acting HIV therapy). Furthermore, Novartis maintains a strategic partnership with Sinopharma, another key player in the Chinese healthcare landscape. Since 2023, Sinopharma has marketed Novartis’ Gleevec (also known as Glivec) in China, and in January, the two parties signed a new agreement to focus on future oncology drug initiatives.