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    Home > Active Ingredient News > Drugs Articles > Multinational pharmaceutical companies are facing four challenges in their "journey" in China. How to deal with them?

    Multinational pharmaceutical companies are facing four challenges in their "journey" in China. How to deal with them?

    • Last Update: 2019-04-26
    • Source: Internet
    • Author: User
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    [pharmaceutical Station industry trends] in 2015, China has become the second largest pharmaceutical country market in the world In 2018, the scale of China's drug market will reach about US $137 billion, accounting for 11.37% of the global market It is estimated that by 2023, the scale will reach US $140-170 billion The huge market scale has attracted many foreign pharmaceutical enterprises to invest and develop in China Although there are many market opportunities, there are still many challenges waiting for multinational pharmaceutical companies to face Under the background of China's pharmaceutical reform, the strategic response of transnational pharmaceutical enterprises pointed out that at present, transnational pharmaceutical enterprises are facing four major challenges The expired original drugs will enter the field of cost competition faster At present, 60 generic drugs have passed the consistency evaluation, and 80% or more of the sales volume of multinational drug enterprises in China (more than 90% of the multinational drug enterprises dominated by generic drugs) are facing the trend of substitution or price reduction Taking Pfizer as an example, although Lipitor, which was listed in China in 2000, is overdue, its sales volume in China in 2018 is still as high as 10 billion, more than a third of Pfizer's sales volume in China With the regulation of a series of national policies, the proportion of innovative drugs will gradually increase in the future, and the proportion of expired original drugs will show a downward trend Second, the innovative drug pipeline of multinational pharmaceutical companies can not keep up with the policy cycle As the R & D of multinational pharmaceutical companies are all in their headquarters, the R & D cycle is long, and the time plan cannot match the time when the relevant policies of the Chinese government are issued, so the dividend of innovative drug policies may be missed Third, the ability of professional promotion should be improved With the introduction of a series of government policies that are conducive to the listing of innovative drugs, the domestic pharmaceutical market will usher in the situation of multinational pharmaceutical companies' cluster listing of innovative drugs Therefore, multinational pharmaceutical companies need to quickly improve the relevant promotion ability or take external recruitment Fourth, marketing efficiency needs to be improved In the context of government control of fees, the bargaining space of pharmaceutical enterprises will also be compressed, and eventually they will adopt "price for market", which requires improving the marketing efficiency of the company and reducing the internal operating costs As for how to deal with these challenges, industry insiders suggest that we can deal with them from the following aspects Pharmaceutical enterprises should actively transform, either from R & D innovation, divestiture of mature drugs, marketing model transformation, or from "product centered" to "patient-centered" In addition, multinational pharmaceutical companies can also use the power of public relations to promote their work by relying on corporate social responsibility plans; they can also show the impact of policies on patients It is also a way to establish alliances with domestic pharmaceutical companies Pharmaceutical companies can also open up additional channels of appeal, expand their influence, or bring global leadership and decision-making experience to China Analysts pointed out that in 2018, various policies were accelerated and the trend of the industry has become increasingly clear In particular, the reform policy of the drug supply side will form the market trend of China's pharmaceutical industry in the future, forming a pharmaceutical ecological environment with innovative vitality and orderly companies, which also means that multinational pharmaceutical enterprises in China will face the transformation era of coexistence of challenges and opportunities For the Chinese pharmaceutical market in 2019, experts have also given ten major trends worthy of the attention of multinational pharmaceutical enterprises: orderly marketing is the principle of sustainable development of the market; second, strong capital enters, quietly changing the layout of the pharmaceutical retail industry; third, in the great reform of the pharmaceutical market, only a stable platform can win Fourth, the financial strength is testing the fate of medical practitioners; fifth, Ka channel is becoming a window to test the scale and sales strength of enterprises; sixth, industrial and commercial cooperation and customer relationship construction have become the ties of strategic cooperation Seventh, the gold single product is no longer the "OTC drugs"; Eighth, the out of hospital sales are becoming a new force in the pharmaceutical retail market; Ninth, the out of hospital sales model is becoming an effective supplement to the hospital drug sales; tenth, the volume purchase of prescription drugs is accelerating the transformation or transfer of medical representatives, and the OTC market competition is intensified.
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