Reasons for Strategic Alliances of International Pharmaceutical Companies in Foreign East Asian Markets Exemplified by Sanofi and MSD in China and Japan

International pharmaceutical companies are characterized by heavy dependence on innovation that allows them to introduce new products to the market and provide solutions for existing therapeutic needs. It has been evident that innovation in the pharmaceutical industry is unobtainable without cooperation between pharmaceutical companies, biotechnological firms, universities and other actors. Simultaneously, pharmaceutical R&D resources tend to shift as more East Asian countries (such as China, Japan, South Korea) acquire unique findings and technologies. In this environment, strategic alliances as one of the most widespread forms of collaboration between Western and Eastern pharmaceutical companies becomes even more important. This paper focuses on the reasons for strategic alliances of international pharmaceutical companies in East Asian markets. In order to identify the reasons, both qualitative and quantitative methods are used in this research: quantitative content analysis, literature analysis, financial statement analysis, as well as case study of Sanofi and MSD in China and Japan. This research can be used by international pharmaceutical companies that are willing to form strategic alliances in East Asian markets (recommendations for those companies are provided in the paper).