Multinational pharmaceutical companies have turned to the Chinese market China gradually to the global new drug market center close.

In recent years, China's pharmaceutical market continues to grow rapidly, and has become the world's second largest pharmaceutical market after the United States.
and since China officially joined ICH in June 2017, CFDA has greatly shortened the time of import of new drugs in China by accepting overseas clinical data and establishing a list of new drugs in urgent need of clinical use.
and thanks to China's accelerated access to innovative drugs, multinational pharmaceutical companies in the Chinese market performance achieved strong growth.
, according to the third quarter 2019 report released by multinational pharmaceutical companies, the Q3 performance in Mersadon China jumped 90 percent, driven by keytruda and the nine-price HPV vaccine, while Roche and AstraZeneca's China performance increased by 53 percent and 37 percent, respectively. Good growth momentum has further strengthened the confidence of multinational pharmaceutical companies in the Chinese market, more and more multinational pharmaceutical companies even positioned the Chinese market as "a key pillar of future growth."
China is gradually moving closer to the center of the global new drug market.
Chart 1: 2018 multinational pharmaceutical companies in China (or including China) performance Source: multinational pharmaceutical companies financial report, China Kang Industrial Capital Research Center, however, by the consistency evaluation, health insurance control fees, "4 plus 7" volume procurement, pharmaceutical catalog negotiations and other domestic policy measures, multinational pharmaceutical companies, some high-priced original research drugs difficult to enter the hospital channel this key market, coupled with rapid, large proportion of the market share of the original drug.
in this case, multinational drug companies have had to adjust their strategies in China.
especially this year, in order to stabilize and even further accelerate its layout in China, Novartis, Pfizer, Sanofi, GSK, BMS and other multinational pharmaceutical companies frequent action.
Chart: 2: 2019 Some multinational pharmaceutical companies in China Trends Source: Public information, China Kang Industrial Capital Research Center can be seen from the table above, in 2019, multinational pharmaceutical companies in China have made these major adjustments: 1, layout of innovative drug research and development on the one hand, multinational pharmaceutical companies in China to establish a global new drug research and development center, or china's existing research and development centers to carry out operational strategies, such as Roche, Bayer has a new research and development center in Shanghai, and Novartis has a focus on the development of a new clinical research and development center.
on the other hand, multinational pharmaceutical companies expand their product lines through cooperation with local pharmaceutical companies, while relying on local forces to speed up the process of approval and listing of new drugs.
at this year's event, AstraZeneca has established partnerships with several local innovative pharmaceutical companies, including Deqi Pharmaceuticals, Shanghai and Yubio.
it's worth noting that AstraZeneca and these local Chinese innovative pharmaceutical companies are not a simple License-out innovative drug pipeline model, but a partnership to jointly promote the research and development of these small molecule innovative drugs in China and around the world.
this cooperation not only jointly develop innovative drugs, but also share the risks and costs of research and development, and share the commercial benefits after the market, of course, in the future multinational pharmaceutical companies and local enterprises may also produce a richer form of cooperation.
and by setting up research and development centers in China and working with local pharmaceutical companies, multinational drug companies in China will further shorten the time to market new drugs, and even with the global new drug market.
at present, many multinational pharmaceutical companies have disclosed their plans for new drug market in China, in the next 5-10 years, more than five multinational pharmaceutical companies are expected to submit 10-60 new drug applications in China.
Chart 3: Future New Drug Listing Plans for Multinational Pharmaceutical Companies in China Source: Public Information, China Kang Industrial Capital Research Center 2, Personnel Adjustment Review 2019, a number of multinational pharmaceutical companies have adjusted their helm in the Chinese market, BMS, Sanofi, GSK, Novartis and other multinational pharmaceutical companies are included.
and these enterprises in China's senior personnel adjustment, can be said to be multinational pharmaceutical companies after re-examining the survival law of the Chinese market after the reaction.
such as Pfizer's "marriage" with Mylan is arguably one of the most hotly debated events in the pharmaceutical industry this year, and the two companies' cooperation is in fact a policy-driven hug.
and this incident has also led to a series of personnel changes, in order to adapt to the changing environment in the Chinese market, Pfizer China General Manager Wu Feng left, and then five business general managers resigned en masse.
last month, Another Pfizer veteran in China, Wu Wei, also bid farewell to a 24-year career at Pfizer.
Chart 4: 2019 some multinational pharmaceutical companies in China executive changes Source: public information, China Kang Industrial Capital Research Center 3, divestiture of non-core business by the "4 plus 7" band procurement policy continued to promote the impact of multinational pharmaceutical companies in order to reduce the impact of the original research drugs, do not let some products affect performance, will usually take a "slim" approach, divest ingenuity non-core business, so that they are more focused on the core business.
for example, this year Novartis plans to transfer 100% of Suzhou Novartis Pharmaceutical Technology Co., Ltd. after the transfer of divestiture technology and drug development assets to Kyushu Pharmaceuticals, GSK to sell its Suzhou plant and hepatitis B drug Heupin to Fosun Pharmaceuticals.
in fact, the multinational pharmaceutical companies operating in China have never stopped exploring the local research and development model, especially in the current period of china's pharmaceutical industry upgrading and reconstruction, the strategic adjustment of multinational pharmaceutical companies has become the norm.
multinational pharmaceutical companies can better survive in the Chinese market if they change in the trend, of course, the need to "change" is not only the research and development model, but also marketing and market entry.
, the industry generally believes that innovative products will be the driving force for future performance growth of multinational pharmaceutical companies, and with the rapid pace of drug approval in China, multinational pharmaceutical companies and local pharmaceutical companies will inevitably have to compete fiercely.
and who can break out of this battle, it depends on its existing product layout, sales capacity and so on.
original title: Pfizer, Novartis, Roche... Multinational drug companies are doing all three things in China in 2019.