At the beginning of the year and the end of the year, entrepreneurs: the way for pharmaceutical enterprises to survive the winter

At the end of the year, a large number of pharmaceutical entrepreneurs were in anxiety This anxiety was not only about the "breaking six" of the economic downturn, but also about the promotion and expansion of 4 + 7 centralized procurement and even their own embarrassing situation since the medical insurance negotiation of innovative drugs on November 28 To make generic drugs, we need to pass the consistency evaluation under the already meager profit situation Making innovative drugs is not only a day's work, but also a day's work It is because the return cycle of new drugs is greatly prolonged and the uncertainty is increased To solve the anxiety of drug entrepreneurs, we should not only deepen the cognition of the pharmaceutical industry and adhere to the long-term principle to enhance the short-term confidence, but also excavate the value to support the long-term, healthy and sustainable development 1 Industrial differentiation is still continuing and accelerating: data from China Pharmaceutical Industry Information Center shows that the growth rate of added value of pharmaceutical industry in 2019 is significantly slower, but still ahead of the growth rate of national GDP and industrial added value (see the figure below) Data source: 2019 Blue Book of China's health industry produced by China Pharmaceutical Industry Information Center The main business income and total profit of the pharmaceutical industry increased steadily (see the figure below) Data source: 2019 Blue Book of China's health industry produced by China Pharmaceutical Industry Information Center The real value of these data continues to be subdivided and mined: This is the overall data of the national pharmaceutical industry If the data is disassembled and recombined, it will be found that there are pharmaceutical enterprises in different situations under the overall and beautiful data On the one hand, pharmaceutical enterprises in the rising period have completed or basically completed the transformation, and are active in the new products, innovative pharmaceutical healthcare negotiations, and national healthcare negotiations announced by CDE In the bidding list of domestic centralized purchase On the other hand, pharmaceutical enterprises are in a state of waiting for marriage Such pharmaceutical enterprises are lack of new product reserves, and their ability to adapt to the new environment has not been established Not only have they not completed the transformation, but they are less likely to survive Between them are struggling pharmaceutical enterprises, whose industrial environment and policy trends have taken shape The future of such pharmaceutical enterprises depends on their own strategies, measures and resource integration capabilities in the next three to five years The overall data is the "algebraic sum" of the rapid growth of pharmaceutical companies in the rising period, the shrinking of pharmaceutical companies to be married and the wandering of pharmaceutical companies in the middle layer (see the figure below) The survival and development strategies of pharmaceutical enterprises at different levels are very different, so it is necessary to accurately determine which development level the pharmaceutical enterprises are in 2 The differentiation and acceleration of the three subdivisions: biological medicine leads the whole year in terms of scale and total profit, followed by chemical medicine, which is in a relatively stable growth state, while traditional Chinese medicine is in an awkward situation On the one hand, national policies are actively improving and strongly supporting, on the other hand, new products, scale growth and even profitability are relatively reluctant Pharmaceutical companies that are laying out new product lines should pay attention to such a trend, and explore the future direction of sustainable development for pharmaceutical companies that are already in a certain field 3 The review and approval of innovative drugs were accelerated, and the growth trend of repeated application of generic drugs was curbed: drug review and approval was significantly accelerated, in which the clinical review and approval time of chemical drugs and biological innovative drugs was reduced by 80% in five years, that is to say, the average review and approval time in 2019 was only 20% in 2014 The number of repeat applications for generic drugs decreased from 51.4 in 2015 to 17.3 in 2019 (see the figure below) Data source: 2019 Blue Book of China's health industry produced by China Pharmaceutical Industry Information Center 4 Excellent performance of innovative drugs after being put on the market: both the single innovative drugs and the overall sales increase significantly, although the total amount is still relatively small, but the trend shown is very worthy of expectation Data source: 2019 Blue Book of China's health industry produced by China Pharmaceutical Industry Information Center 5 The external environment presents uncertainty What kind of policies will emerge in the pharmaceutical industry in 2020? How to further promote the negotiation of national centralized purchase and innovative medicine medical insurance? There are many uncertainties At the same time, it should be noted that the pharmaceutical industry is a "weak cycle" industry, new technology, new environment and new policies do not reduce diseases and patients, so in essence, the demand of the pharmaceutical industry is not decreasing but increasing, but the demand mode and method have changed On the surface, the operating costs and expenses of China's pharmaceutical industry are increasing, and the prices are falling precipitously, whether it is generic drugs or innovative drugs; the profit space of pharmaceutical enterprises is greatly compressed; and the industrial policies are constantly "crushing" the enterprises that lack accumulation of talents, products, technologies and management in the industry The real difficulties lie in the following two aspects: First, the operation management ability is insufficient The understanding of the sharp decline in drug prices is not enough, which essentially reflects that the overall operation and management efficiency of Chinese pharmaceutical enterprises needs to be improved A doctor introduced a case of effectively reducing the cost of new drugs through technological innovation at a meeting: a new product faces the risk of being "killed" due to its high cost after its process is opened, and the indications of this product are very needed, and the market value is very good The team reduced the synthesis link from 8 steps to 3 steps through technological innovation, while the yield was greatly improved High, successfully broke through the cost dilemma of new and good drugs, and technological progress made this new drug impossible to become possible Second, it's hard to be short of vision in strategic choice Just like the hepatitis C DAA in the health care negotiation on November 28, it was included in the "competitive negotiation", obviously in terms of price, it could not "fight" with "the only" or unique new drugs The logic behind this phenomenon is strategic foresight, which actually determines the profitability of this product when choosing a project 1 We have always looked at the pharmaceutical industry in a static and fixed way, thinking that next year is a simple repetition of this year, lacking Due Foresight for future fluctuations and "cliff", and used to use "smart" and "wisdom" rather than strategy and foresight to operate, so they are all "small smart" 2 Accustomed to "easy" operation and making money, not prepared for "overwintering" in terms of ideology, technology and equipment Just like a bird, when winter comes, it wants to build nest next year When spring comes, it forgets to build nest As a result, when winter comes, it faces the same problem 3 Rationally speaking, the formulation of industrial policy is based on the development of the whole industry Pharmaceutical enterprises must be in the mainstream position of the industry and the strategic layout must conform to the law of industrial development 4 The efficiency of operation management is not high and there is no coordination 5 The understanding of technology and innovation is too one-sided, which restricts innovation to new products and replaces technological progress with equipment renewal In fact, technology and innovation cover almost every link of management and management of pharmaceutical enterprises, and there is room for improvement and optimization Furthermore, every technological progress has a model that adapts to it first, which requires almost all staff's coordination and cooperation, which requires the cooperation of strategy, vision and mission In fact, it is a test of the organization ability of pharmaceutical enterprises If we don't realize this, we will surely turn around in shallow places 6 In terms of motivating employees' enthusiasm and creativity, it is often against the original intention because it is lost in coarseness, lack of pertinence and role dislocation 7 The learning of "experience" in developed countries is partial to copying, lacking in-depth cognition Every kind of operation and management measures has its own conditions to adapt to the environment and play its role It's not worth the loss to "copy mechanically" without considering the development stage of the enterprise and the specific environment and conditions 1 Enhance cognition and deeply understand that the coming "cold winter" should be the most severe external environment The coming "cold winter" is the result of the reconstruction of the international economic order, the lack of originality in China for a long time, the Sino-U.S duel and the price reduction of drug centralized purchase We must make long-term plans and build a long-term development foundation during this round of "wintering" 2 Rebuild your own value proposition Reshape the strategy, explore the possibility of the future while mining the certainty, build the irreplaceable and explore the value of symbiosis, strengthen the core competence and explore the new value of the core competence, innovate the customer value and assume the social responsibility 3 Continuously improve and optimize cash flow According to the strategy, customer needs and possibilities, judge which business behaviors, teams and positions are worth retaining, increasing and strengthening, remove redundant business behaviors, teams and positions, and cut down projects and diversified investments with no long-term value Increase investment that can improve profitability, bring cash flow and future value 4 Focus on the main business, continue to increase investment and resources in the main channel, surpass competition and build a non zonality Actively "hibernate", optimize the strategy during the "winter" period, improve the governance foundation, make all-round technical progress in a down-to-earth manner, and make full preparations for the coming "spring" of the industry 5 Treat innovation dialectically In the new competition and industrial environment, differentiation, uniqueness and focus become the key elements If the pure new is "homogenized new" value is not big Up to now, the innovation in the industry is still limited to new drugs In fact, there is innovation space in almost all links of the product formation process, especially in the stage of new drug design All pay attention to "big" new drugs, so the new drugs "crash" occurs repeatedly, the author reminds us to pay more attention to the needs of rare diseases, small and medium-sized patients "New" should be reflected in differentiation, uniqueness, focus and focus, otherwise the "new" value will be discounted 6 The traditional way of reducing cost and improving efficiency has come to an end We must take fundamental measures in digital transformation, technological innovation and process reengineering As a strategic and key measure, we should attach importance to it for a long time and have sufficient resources to support it 7 The key to reduce the cost of new product R & D failure lies in the strategy and vision of the enterprise The first is to reduce failures, the second is to reduce the number of "crashes", the third is to speed up the pace of listing and shorten the time of research and development, all of which will improve the enterprise value 8 Digital transformation It and network technology will be integrated into all aspects of R & D, production, marketing, human resources, operation and other business management This step of digitalization is not the auxiliary function of other aspects and functions, but the strategic partner or even the core It can be predicted that once digitalization is integrated into all aspects and functions of pharmaceutical enterprise management, digitalization will become an indispensable part of the strategy, and the strategic vision, refined management level and cost control level of Chinese pharmaceutical enterprises will be on a new level 9 Enhance the vitality and cohesion of people in the enterprise All good strategies, decision-making, innovation, cost, digital market value can not be realized without the role of people As the most critical area for the survival and sustainable development of pharmaceutical enterprises in the era of great change, the leadership and human resource management of pharmaceutical enterprises need to have new, more effective and targeted vision, determination and methods 10 Business operators must improve their leadership and hone their perseverance The depression of the general environment, the price reduction of generic drugs and new drugs promoted by the state, and the fear and confusion of most pharmaceutical enterprises about innovation will increase the anxiety and helplessness of the managers of pharmaceutical enterprises The solution is still to return to fundamentals.