As China vigorously promotes the development of pharmaceutical innovation, multinational pharmaceutical companies are accelerating reforms

Recently, the head of Novartis Oncology AMACO's regional marketing announced that Ji Bicheng will resign from Novartis Oncology (China) as general manager and be transferred to Novartis's AAA platform as the head of North America, effective from January 1, 2022
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It is worth noting that before Novartis, Chen Pengquan, general manager of AstraZeneca China's digestion and respiratory nebulization business (GNR), also announced to employees that He Yimin, assistant vice president of GNR, would resign
.
It is understood that He Yimin is the third executive to resign from AstraZeneca's digestion and respiratory nebulization department since August this year, following Dong Lijun and Zhang Anwei
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Regarding the recent frequent personnel changes of multinational pharmaceutical companies, the industry believes that this may be because China’s huge medical market in recent years is attracting the attention of more and more multinational pharmaceutical companies; but at the same time, a series of medical reform documents have been issued, especially Volume purchases are also bringing more changes to the domestic pharmaceutical and medical markets
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In fact, in recent years, in order to adapt to market development, it has become the norm for multinational pharmaceutical companies to accelerate their domestic strategic layout and personnel adjustments
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It is reported that since this year alone, many multinational pharmaceutical companies including Pfizer, Roche, Merck and others have adjusted their organizational structures in China and implemented a number of operations including business line divestitures and mergers, replacement of senior candidates, and focus on innovative drugs.
Initiative
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Among them, at the beginning of September this year, Roche Pharmaceuticals China also specially added a Chinese product pipeline strategy team
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At the same time, Ms.
Chen Xingrong, the head of the company's transformation and innovation office, will concurrently serve as the head of the China product pipeline strategy team
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According to Roche Pharmaceuticals, the establishment of the China Product Pipeline Strategy Team this time is mainly to strengthen China's overall strategic layout, and to work closely with headquarters and all parties in the industry chain to benefit more Chinese patients
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Based on the above, the industry believes that behind the drastic reforms of multinational pharmaceutical companies, in addition to being affected by the implementation of China's pharmaceutical industry policies in recent years, more importantly, the trend of the Chinese market environment is gradually shifting from generic drugs to innovation
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Under the background of shrinking profits of domestic generic drugs and vigorously promoting the development of innovative drugs, accelerating the adjustment of business and strategy in the Chinese market has become a normal operation for multinational pharmaceutical companies to maintain their competitive advantages.

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For example, through the divestiture of mature businesses and team adjustments, multinational pharmaceutical companies can accelerate the closing of the funding gap and at the same time realize the reshaping of the value of the parent company in the capital market
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At the same time, the divestiture of non-core mature drug business can also increase the positive synergy of internal cooperation and improve the efficiency of resource allocation
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In this context, the industry expects that in the future, more multinational pharmaceutical companies will accelerate the "transformation and upgrade" and seize the domestic market share by actively adjusting their domestic strategic layout
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In general, for most multinational pharmaceutical companies, the main purpose of structural adjustment is to divest non-core businesses and save costs to add to the field of innovative drugs
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From the perspective of the adjustment path, it can also reflect the future expectations of multinational pharmaceutical companies for the Chinese market
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However, research and development is not an easy task, and strategic adjustments will not be implemented in a short period of time.
Whether it can withstand the advancement of many Chinese policies remains to be seen.
Therefore, the effectiveness of strategic adjustments depends on their future performance
.