Mnc2014 second quarter performance review: Pfizer is the first, GSK is the bottom

Source: E drug Facebook 2014-11-20 if the growth of multinational pharmaceutical companies in China was slow in the first quarter of this year, some enterprises accelerated the growth rate in the second quarter, while some enterprises were slowing down AstraZeneca and Lilly took the lead in the first quarter, with sales in China up 22% and 21% respectively In particular, AstraZeneca has surpassed its competitors in China In 2013, AstraZeneca's annual sales revenue increased by 19% Under the influence of strong headwinds in the pharmaceutical industry and nationwide anti-corruption actions, the British company still achieved impressive results However, AstraZeneca was overtaken by Pfizer in the second quarter The New York based company grew 25% in the second quarter, about 2% higher than AstraZeneca Another outstanding company is Sanofi The French company grew 13% in the second quarter, up just 10% in the first quarter In addition, Merck also got rid of the shadow of two quarters of negative growth in 2013, with an increase of 4% in the second quarter of this year Surprisingly, Novartis, which grew by 23% in 2013 with its comprehensive product portfolio, is growing slowly this year Novartis' growth rate fell to 17% in the first quarter of this year, and further fell to 13% in the second quarter Novartis' product portfolio covers cardiovascular, oncology, ophthalmology and generics in great demand The long tail effect, based on the financial report data, investor information and conference call published by various enterprises, shows that there is a winning strategy that is very clear: pay attention to mature products Mature products continue to promote the growth of multinational pharmaceutical enterprises in China The so-called "long tail" effect is mainly attributed to the appeal of mature brands, market channels and prescription habits In China, strong sales of some mature varieties, such as Pfizer's Lipitor (atorvastatin) and loxorubicin (amlodipine), AstraZeneca's codeine (rosuvastatin), Sanofi's Plavix (clopidogrel) and Bayer's aspirin, are good examples of this long tail effect In Pfizer's view, the continued success of such products, especially cardiovascular drugs, is in line with the Chinese government's goal of better management of chronic diseases "For the Chinese market, we attach great importance to promoting the continuous growth of our traditional products," said John young, President of Pfizer's global mature pharmaceutical business group Lipitor is a very outstanding product Given that the Chinese government really wants to better treat and manage patients with cardiovascular disease, Lipitor plus roxithromycin's product portfolio is very consistent with the government's goal " Pfizer said that due to market demand, sales of Lipitor in China increased by 55% compared with the previous quarter, and that of livejoy increased by 30% AstraZeneca's predictable performance was also good, becoming the main driver of the company's solid growth in the second quarter - an increase of 23% and China's revenue accounting for almost 40% of all its emerging market businesses Similarly, aspirin continues to be the main driver of Bayer's growth, with Bayer management saying: "market demand has increased significantly, especially in China." Sanofi's sales in China in the second quarter were about 401 million euros, mainly due to Plavix, Laishi (insulin glargine) and Kesai (enoxaparin) In spite of the generic competition from several local manufacturers in China, Plavix's sales increased by 16% to 124 million euros in the current quarter In addition to improving the product structure, the rapidly growing enterprises have greatly expanded their sales force in China under the background of weak economy, increasing labor cost and increasingly fierce competition Among them, Novo Nordisk said sales in China increased by 17% in the second quarter, mainly driven by modern insulin and human insulin The company increased its investment in marketing and sales, which also promoted its growth The Danish company focuses on China, the United States and several other international markets and plans to increase its staff by 12% "The number of sales representatives in China has increased significantly in the first half of this year," Pfizer said AstraZeneca also said it would continue to increase investment in emerging markets, especially in China Executives of multinational pharmaceutical companies have pointed out that the competition from local Chinese companies is also increasingly fierce Daniel O'Day, Roche's chief operating officer, said in a conference call on July 24: "trocaine (erlotinib) still performs well as a first-line drug, but it can't completely offset the competition when it comes to second-line drugs As I mentioned before, there is a similar competitive product in China, competing with us for the market of second-line drugs " Such competitors include Becquerel's Kemena, a selective epidermal growth factor receptor (EGFR) tyrosine kinase inhibitor According to Beida pharmaceutical, the market share of exetinib is continuing to expand due to its low price; the sales of the drug reached 474.8 million yuan (about 76.4 million US dollars) in 2013, compared with 60 million yuan when it was just launched in 2011 Analysts of new product driven growth warned that although the performance of original research drugs with expired patents is outstanding, so-called brand generic drugs will face considerable pricing pressure, and competition from local enterprises will become increasingly fierce In a January report, BCG predicted that "the main business foundation of most multinational enterprises is the original research drug whose patent expires But this kind of business will basically disappear in another 5-10 years " BCG pointed out in the report that multinational enterprises must attach importance to bringing real innovative products into the Chinese market For this reason, AstraZeneca and other enterprises have begun to focus on some new varieties, such as xinbico Pascal soriot, CEO of AstraZeneca, pointed out in the company's second quarter conference call: "the growth of xinbike (budesonide / formotero) is largely the result of our investment We expanded our sales force We began to reach hospitals in areas that were not previously covered We have greatly increased the number of sales representatives We have also carried out educational activities around the treatment of respiratory diseases "China has a huge population and a fast-growing economy Because of the serious air pollution and the large number of people who smoke, the problem of respiratory system is becoming more and more serious," soriot said As a result, the number of people with COPD and asthma should increase a lot " There are still challenges Although the growth prospects are good, the challenges are not small GlaxoSmithKline, for example, is still in the shadow of China's compliance investigation It's been a year since the UK company was involved in the compliance storm, but sales continued to decline in the second quarter, to 25%, lower than in the first quarter But Sir Andrew witty, CEO of GSK, said the company remained committed to developing the Chinese market "We remain committed to our business in the Chinese market, including consumer health products, pharmaceuticals and vaccines," he said in a July 23 financial conference call "We will certainly cooperate with the government in dealing with the problems that have occurred." He said he could not "comment at will" on the ongoing investigation.