Under the multiple pressures of centralized procurement and foreign investment, where is the way out for local pharmaceutical companies?

The biomedical industry is a strategic emerging industry of great significance in China
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In recent years, with the intensification of aging, the continuous upgrading of consumption, and the reform and improvement of a series of national medicine-related policies, the research and development environment for innovative drugs has become better and better, the R&D investment level of local innovative drug companies has continued to increase, and the innovation strength of China's biomedical industry Continuous upgrading, the industry development space is very broad
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However, local pharmaceutical companies are still facing multiple pressures
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On the one hand, under the background of normalization of centralized procurement, drug price reduction has become a trend, the industry is facing innovation and transformation, a group of small and medium-sized enterprises will face the situation of elimination, and the overall market competition will become more fierce; on the other hand, since China joined ICH in 2017, Mutual recognition of data has enabled local pharmaceutical companies to enjoy ICH dividends.
At the same time, foreign original research companies are rapidly entering the domestic market, intensifying market competition
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So, under the multiple pressures of centralized procurement and foreign investment, where is the way out for local pharmaceutical companies? Regarding the fierce competition brought about by centralized procurement, the industry believes that this policy change is actually modifying the competition pattern and game rules of the pharmaceutical industry.
With the sharp price reduction of drugs, the profits of companies that prefer generic drugs are Will be affected to a certain extent, and for companies with certain R&D capabilities and cost control capabilities, they are still expected to enjoy policy dividends such as accelerated review and approval, accelerated centralized procurement, and increased volume of innovative products
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The purpose of national centralized procurement is to compress the intermediate links of medicines and benefit the people.
Therefore, under the background of accelerated centralized procurement, what pharmaceutical companies need to do is to actively transform and develop high-end generic drugs or innovative drugs.
This is also in line with the country's encouragement in the pharmaceutical field.
Innovative concept
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In addition, in the face of the impact of foreign-funded enterprises, the industry emphasizes that the principles of ICH should be followed, two-legged two-wheel drive, and the combination of internal and external markets can survive and develop
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It believes that local pharmaceutical companies should look to the world and go out of the way of internationalization, rather than being limited to the domestic market
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In fact, in the context of the deepening of the internationalization trend of China's pharmaceutical industry, "differentiated competition" is becoming more and more important for the development of local pharmaceutical companies
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In recent years, more and more local innovative drug companies have continued to rise, and domestic products are speeding up overseas
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More representative ones, such as Zebutinib developed by BeiGene and Fruquintinib developed by Hutchison Whampoa, were quickly approved in the United States
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Looking back in 2020, local pharmaceutical companies such as Biotech, Henlius and Cinda Biotech also have cases of overseas authorization of the commercialization rights of biosimilar drugs
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In addition, there are many domestic pharmaceutical companies whose PDL-1 products are lining up to apply for approval for listing in the United States
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In addition to independent market development, many local pharmaceutical companies are actively seeking cooperation opportunities
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In recent years, authorization cooperation (License) has become a common way of cooperation in the domestic pharmaceutical field.
This way of cooperation means that the product introducer pays a certain down payment to the product licensor, and agrees on subsequent milestone payments and future sales commissions.
, So as to obtain the commercialization rights for R&D, production and sales in certain specific countries and regions
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License can be divided into two types: License-in and License-out.
The former is that the introducer pays to purchase the license from the authorizing party, and the latter is that the authorizing party grants the license to the introducer for a fee
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It is understood that entering 2021, the License in mode and License-out mode of Chinese innovative drug companies will continue to heat up, including BeiGene, Huadong Pharmaceutical, and China Biopharmaceuticals who are expanding their product lines through licenses
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The industry believes that through license cooperation, local pharmaceutical companies will help accelerate the outbound of domestically-made innovative drugs and benefit more patients overseas
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