GSK China is expected to cut staff significantly: freezing point of business after bribery

Source: Pharma Finance on January 16, 2015, a former employee of GSK exclusively disclosed to the reporter that GSK (GSK for short) will make a large number of layoffs in China The company has notified in a certain range through video conference on January 14, but the situation of the genre members is unknown A number of GSK related people also said they had heard the news But GlaxoSmithKline China replied to Nandu, "we have not reduced the size of the team In fact, we will hire more employees to meet the needs of the company's future business development " Several hundred former employees of GlaxoSmithKline, who resigned last year, told reporters that the company had notified within a certain range through video conference on January 14 It is worth noting that there have been several layoffs within GSK China from March to June last year, and hundreds of medical representatives have left At the end of May last year, some of the dismissed medical representatives also sued GSK China In addition, GSK plans to cut as many as 900 jobs in 2015, including 350 in the first quarter and 450 in the second quarter, according to a statement a month ago At that time, GSK announced that it had prepared new jobs for a total of 450 employees leaving the company In addition, GSK had worked with cro parexel when it finalized the agreement with Novartis Signed a restructuring plan to accommodate thousands of employees After synthesizing the reports of all parties, the reporter found that the main job cuts were for sales and market But the R & D business has not been spared When the company announced its $1.6 billion layoff plan in early 2014, it was the expiration of GSK's schulidier patent, a heavyweight product Although the inhalation equipment of the asthma drug is extremely difficult to replicate, and the development of competing products is slow, the verdict from the drug welfare management agency directly pushed Seretide to the brink of life and death: in 2014, the fast prescription of the largest PBM company in the United States directly kicked Seretide out of the reimbursement catalog, and said that in order to return to the catalog in 2015, GSK must sell the drug at a discount Combined with competitive pressures from similar products, GSK decided to reduce its strength in respiratory drug research and development: its R & D center in the North Carolina Triangle business park will be cut, while consolidating its strength in Philadelphia, the United States, and stevnich, the United Kingdom China's business is at the freezing point in China GSK's business has been at the freezing point since the bribery incident in mid-2013 In addition, the generic impact in China makes GSK even worse Shi Lichen, senior pharmaceutical partner of Beijing University Zongheng, told reporters: "after GSK bribery, its previous marketing model has been severely damaged and the cost is huge In the future, when the patent medicine expires, it will face more problems In time, the generic drugs produced by Chinese enterprises will have an impact on them at low prices " Previously, Lin Jianning, director of CFDA Southern Pharmaceutical Economics Research Institute, also said that the competition of generic drugs often makes these multinational pharmaceutical giants fall into the awkward position of easy to increase sales and difficult to increase profits At the time when the patent medicine is about to expire, GSK's new patent application is also delayed It is reported that GSK is facing another patent problem in China after giving up the patent for the new diabetes drug "rosiglitazone" composition on August 10 this year: the patent application for the new hepatitis B drug "adefovir dipivoxil", which was put forward four years ago, has not yet been approved, while there are 10 patents in China Several enterprises are stepping up the development of the drug, two of which have submitted patent applications to the State Intellectual Property Office, and some manufacturers have been approved to enter phase II clinical trials GSK is suffering from the influence of the Chinese market Its revenue in the first three quarters fell sharply, lower than the average expectation of market analysts Link: according to a notice one month ago, GSK plans to cut as many as 900 jobs in 2015, including 350 in the first quarter and 450 in the second quarter At that time, GSK announced that it had prepared new jobs for a total of 450 employees leaving the company In addition, GSK had worked with cro in finalizing the agreement with Novartis Parexel has signed a restructuring plan to accommodate thousands of employees.