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    Home > Active Ingredient News > Drugs Articles > What did foreign pharmaceutical companies do in China in 2016?

    What did foreign pharmaceutical companies do in China in 2016?

    • Last Update: 2017-01-12
    • Source: Internet
    • Author: User
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    Source: the past 2016 of Beijing Business Daily on January 12, 2017 has been a turbulent year for foreign pharmaceutical companies With the coming of pharmaceutical patent cliff, the wind of medical anti-corruption is blowing fiercer and fiercer In addition to the slow development of new drugs and the continuous promotion and adjustment of the company's business, many foreign pharmaceutical enterprises have chosen to cut staff and reduce the price of some products in this year, and have begun to seek cooperation with Chinese pharmaceutical enterprises Under the internal and external problems such as patent expiration, policy tightening, bidding and price reduction, and drug price negotiation, foreign pharmaceutical enterprises need to seek new development models and growth points in China The layoffs are highly praised by the famous multinational pharmaceutical companies Johnson & Johnson and Roche, and new layoffs are coming out It is understood that Johnson & Johnson's over-the-counter department carried out a round of layoffs at the end of December 2016, with 32 representatives and 4 regional managers facing unemployment; a second round of layoffs will be carried out at the beginning of next year, and it is expected that the team of more than 170 people will be reduced to more than 90, and nearly half of the staff will be eliminated At the same time, Roche's palosine drug department will also cut staff According to the source, there have been interviews with employees, and the details of the layoffs are unknown for the time being If we open the curtain of time, we can see clearly that layoffs in the past year are not new to foreign pharmaceutical companies At the beginning of last year, Johnson & Johnson announced that it would lay off about 3000 employees in the medical device sector in the next two years, accounting for 4% - 6% of the total number of employees in the sector globally; Novartis, another foreign pharmaceutical company, closed the schlellan biological agents sector in Shanghai, China and Switzerland, among which 18 were involved in the abolition of the biological agents sector in Shanghai, China There are 73 positions involved in the closure of schlellan's biological preparation department in Switzerland, and 84 positions involved in the relocation of the tropical diseases research center from Singapore to California in the United States will be abolished Novartis said the decision was made to cut costs and enhance R & D synergies There are also Bristol Myers Squibb, Sanofi and so on "The main purpose of downsizing measures taken by foreign pharmaceutical companies is to reduce costs and boost performance Under the influence of the Chinese government's strict control of drug prices and the cancellation of drug markup policies, the development path of foreign pharmaceutical enterprises in China is still under great pressure, and the decline of drug prices and market shrinkage have become a common phenomenon In this case, reducing the cost of non core departments through layoffs, focusing on the development of patented drugs with long life cycle and high R & D difficulty has become the same direction of transformation of foreign pharmaceutical enterprises " The interpretation of medical expert Yue Feng basically represents the industry's evaluation of the layoffs of foreign pharmaceutical enterprises in China After the wave of layoffs, foreign pharmaceutical companies can also focus effective resources on the core departments In order to reduce the weight of the business, reducing the price of some drugs to fight against the fierce market competition brought by domestic generic drugs has become the goal of foreign pharmaceutical companies In May 2016, the results of the first batch of national drug price negotiations revealed that five drugs related to cancer treatment and treatment of major diseases were used as pilot negotiations, four of which were expensive patent drugs and imported drugs produced by foreign pharmaceutical companies Through negotiation, the price of drugs has been reduced by more than 50% Taking tenofovir dipivoxil produced by GlaxoSmithKline as an example, after negotiation, the average monthly drug cost of patients will be reduced from about 1500 yuan to about 490 yuan Behind the price reduction, on the one hand, this strategy is in line with GlaxoSmithKline's established strategy On the other hand, it also reflects that under the general situation of national drug price negotiation, "price for quantity" has become the strategic focus of many foreign drug companies in China Novartis, Lilly and AstraZeneca are all loyal supporters of the price reduction strategy According to data from third parties, as many as 631 patent drugs expired in the world in 2012-2016 18 of the top 20 best-selling prescription drugs in the world are about to expire patents, and the annual global sales of these 18 prescription drugs are $142 billion It is generally believed in the pharmaceutical industry that the "cliff" of foreign patent drugs has arrived At the same time, the implementation of the consistency evaluation of generic drugs is driving domestic pharmaceutical companies to produce generic drugs that are consistent with the original research drugs in terms of quality and efficacy, to replace the original research drugs clinically and save medical costs This momentum also brings more pressure on foreign pharmaceutical companies to grow The industry believes that in the future, subject to the slowdown in sales growth, there may be more patented drugs from foreign pharmaceutical companies entering the price negotiation mechanism Mr Shi lichen, founder of the third-party medical service platform, said that in the future, foreign drugs with expired patents will compete directly with generic drugs on the same platform, which is the general trend Now foreign pharmaceutical companies are participating in the negotiations in exchange for access to the health insurance catalogue In recent years, the growth rate of foreign pharmaceutical enterprises has declined, and entering the medical insurance catalog has a great role in promoting the sales of drugs In addition to focusing on the core business and adjusting the drug price, the cooperation with local pharmaceutical companies has become the choice for foreign pharmaceutical companies to grasp the Chinese market Recently, Pfizer's official wechat announced that it will explore new ideas for introducing innovative products into China: as an attempt, Pfizer will select some early R & D projects that are suitable for the disease spectrum of Chinese patients and have high treatment needs from the R & D product line, and authorize the project and its accompanying proprietary technology and other resources to those who have Local enterprises with R & D strength and innovation potential will further develop localization In addition to this innovative mode of cooperative development, there are generally two modes of cooperation between foreign pharmaceutical enterprises and local pharmaceutical enterprises in the past year One is to transfer assets directly For example, in May 2016, tailing pharmaceutical, a local pharmaceutical company, announced that it had reached an agreement with Novartis to acquire intellectual property, licenses and other assets related to the secret interest of orthopedic brands, with a total transaction amount of US $145 million At the same time, some foreign pharmaceutical companies began to sell the Chinese sales right to local enterprises in order to control the cost and avoid the significant impact of policy issues such as bidding on the operation In March 2016, AstraZeneca transferred the exclusive sales rights of its blockbuster antihypertensive drug "boyding" and cardiovascular treatment drug "imdo" to kangzhe pharmaceutical, a Chinese company, and its holding company Tibet pharmaceutical, for us $310 million and US $190 million respectively But on the other hand, both of them have achieved a win-win situation with local pharmaceutical companies to some extent Yuefeng believes that in the next two years, this win-win model will continue, and foreign pharmaceutical enterprises will try to promote localization through various innovative cooperation models, which will become one of the core strategies in China.
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