Eli Lilly’s business model adjustment for multinational pharmaceutical companies has a large number of drugs "patent cliff" here?

Yesterday, an internal email from Eli Lilly China came to light.

In response to the business adjustment of multiple product lines of Eli Lilly, we wrote to verify the company as soon as possible, and the response from Eli Lilly confirmed that the news was true.

Eli Lilly's heavy-duty hypoglycemic drug sales team adjusted to focus on core mature markets

According to data, Enpagliflozin (Chinese trade name: Ou Tangjing) is a SGLT-2 inhibitor jointly developed by Boehringer Ingelheim and Eli Lilly.

The reason for the adjustment of Ou Tangjing’s team this time, Eli Lilly stated that it was because Ou Tangjing was not included in the fourth batch of national centralized procurement catalogs.

In October 2020, the Patent Reexamination Board of the State Intellectual Property Office decided that the compound patents of Boehringer Ingelheim/Lilly’s blockbuster "Engliflozin" were all invalidated in China.

In February of this year, four batches of national sources bid for the highest effective declaration price of riengliflozin 10mg at 4.

This means that due to the impact of volume purchases, Eli Lilly will abandon the maintenance and development of Ou Tangjing’s non-core markets, and focus on Ou Tangjing’s existing mature markets in the future.

The CCO mixed line team is cancelled, what will happen to the patent expired drugs?

In addition, in the email, Eli Lilly also stated, “During the business transformation and adjustment at the end of last year, based on the uncertain factors of the three products (Xinbaida, Cialy, and Futai), in order to smooth the business transition and explore uncertainties.

According to this internal email, it can be clearly seen that Eli Lilly will cancel the CCO mixed line team, but for the original product line and related sales team, I do not know how Eli Lilly will handle it.

However, we have also seen "clues" from some earlier reports.

Going forward, at the end of 2018, Eli Lilly was accused of considering selling expired patent drug business in China to raise funds to promote the research and development and listing of other products with faster growth.

With the cancellation of the CCO mixed-line sales team, Eli Lilly said that the business transformation will not affect patients and the company will continue to ensure the commercial supply of these products.

In response to the impact of this adjustment, it is understood that Eli Lilly will prioritize all vacant posts within the company to the affected employees.

Not long ago, news in the industry pointed out that Eli Lilly China, 3SBio and its subsidiaries have officially stopped cooperating to promote humerin products and humerin pre-filled products.

Recently, Eli Lilly has intensively adjusted a number of product lines, as well as the future handling of expired patent drugs, we also asked Eli Lilly.

Multinational pharmaceutical companies accelerate the divestiture of mature products

For a long time in the past, our country has been wearing the label of a "generic drug power".

With the development of national drug purchases and the implementation of medical policies such as consistency evaluation, more and more expired original research drugs are no longer entitled to "super national treatment", and the "patent cliff" of expired original research drugs is also oncoming .

Affected by a series of influences, the drug sales strategies of multinational pharmaceutical companies are also changing frequently.
Since 2018, many pharmaceutical companies have accelerated the divestiture of mature product businesses, or optimized teams, layoffs, and so on.

For example, in May 2018, AstraZeneca sold the expired antipsychotic drug Seroquel to Luye Pharma.
In December 2020, AstraZeneca sold the rights of its old product Crestor (rosuvastatin, rosuvastatin) and related drugs in more than 30 European countries except the United Kingdom and Spain to Grünenthal.

In March 2018, Roche announced that its recombinant human erythropoietin product, Rocoman, has been officially granted the promotion and distribution rights in mainland China to Eton Pharmaceuticals.
In 2017, Rocoman was included in the National Medical Insurance Catalog; in March 2021, Roche laid off the Rochefin antibiotic team.
The reason is that the sales representatives of Rochefin did not meet the sales expectations, and due to the impact of the epidemic, the number of pediatric patients has been drastically reduced, and the use of antibiotics has also fallen drastically.

In April 2019, Eli Lilly announced that it had signed an agreement with China Etten Pharmaceuticals to sell its antibiotic products Xikerao and Wentong's rights in mainland China, as well as the Xikerao production plant in Suzhou.
This transaction means that Eli Lilly will divest its mature antibiotic product line.

In July 2019, Pfizer announced that it would merge its patent expiring brand and generic drug business units-Putron and Mylan to create a new global pharmaceutical company.
According to this merger, Pfizer will inject its brand drugs Lipitor, Celebrex and Viagra into the new company.

In March 2021, Daiichi Sankyo laid off its anti-infective and respiratory analgesic product lines, and plans to merge cardiovascular, anti-infective, and respiratory analgesic lines.
One of the main reasons is that the company's respiratory analgesic line Lesong tablets and anti- The infection product line Kolabitu tablets entered the fourth batch of national centralized procurement.

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Faced with changes in the pharmaceutical environment and a fiercely competitive market, multinational pharmaceutical companies are speeding up the divestiture of mature products on the one hand, and on the other hand they are also concentrating resources on key areas.
At the same time, MNC also attaches great importance to the Chinese pharmaceutical market, such as increasing the research and development of new drugs, investing heavily in unsatisfied treatment fields, and accelerating coverage of the domestic primary market.