GSK China's pharmaceutical business license cancellation high-value business spin-off MNC "slimming" tide is coming?

Following Bristol-Myers Squibb, GlaxoSmithKline (GSK) also announced the cancellation of the drug business license of its subsidiary in China

01 GSK China suspends import drug agency and bidding? !

On June 28, 2021, the Shanxi Provincial Pharmaceutical Equipment Centralized Bidding and Procurement Center issued a notice on the cancellation of the bidder of GlaxoSmithKline (China) Investment Co.

According to the data, GlaxoSmithKline (China) Investment Co.

The scope of business includes investment and financing in China, the establishment of R&D centers, and the sale of products produced by the company's invested enterprises in the domestic and foreign markets through agents or distribution methods, and the provision of after-sales services

Source: Enterprise Check

The actual controller of GlaxoSmithKline (China) Investment Co.

As for why GSK China chose to cancel its drug business license at this time, and whether it will affect the sales and bidding of its own products

Coincidentally, on March 15th, the Jiangsu Provincial Food and Drug Administration issued an announcement stating that in accordance with the "Administrative Licensing Law", "Drug Administration Law", "Drug Distribution License Management Measures" and other relevant regulations, Bristol-Myers Squibb (China ) pharmaceutical Co.

Earlier, industry insiders told Sina Pharmaceuticals (sinayiyao) that it is common for multinational pharmaceutical companies to set up some distribution companies in China, mainly because they can sell/agent more drugs, including their own products, after obtaining GSP certificates

02 Spin-off of GSK, a consumer healthcare business, soon

On March 31, 2017, GSK appointed Emma Walmsley, the former CEO of Consumer Healthcare Products, as its global CEO

In 2018, GSK and Pfizer announced the merger of their consumer healthcare businesses into a global consumer healthcare company with a strong iconic brand

The joint venture operates under the name GSK Consumer Healthcare

On June 23, 2021, the combined business has made new progress

GlaxoSmithKline’s 2020 performance shows that its annual revenue was 34.

After the divestiture, GSK expects product sales to reach 33 billion pounds ($46 billion) in 2031

It is understood that after the divestiture of the consumer healthcare business, the new GSK will focus on vaccines and specialty drugs

Even GSK revealed that it has made significant progress in clinical development, including more than 20 assets that have entered the later stage of clinical trials

03 multinational pharmaceutical companies assets and adjustments "downsizing" continues

According to the official website of GlaxoSmithKline China, the main consumer health products in China are Comfort Da, Polygon for oral health, and Fenbid, Britton, and Voltaren for pain management
.

It is worth noting that in 1987, GSK, a large domestic pharmaceutical company Tianjin Zhongxin Pharmaceutical Co.
, Ltd.
and Tianjin Pharmaceutical Group Co.
, Ltd.
jointly invested and established a consumer health products company-Sino-US Tianjin Shike Pharmaceutical Co.
, Ltd.
, and its consumer health products Mainly by the Sino-US Tianjin SmithKline Pharmaceutical Co.
, Ltd.
in charge
.
After the spin-off, I don’t know if the related businesses and teams of China-US SmithKline will be affected
.
We will continue to pay attention
.

Like GSK, Bristol-Myers Squibb, which canceled the drug business license of its subsidiary in China, this year, another subsidiary also voluntarily applied for cancellation this year, including acetaminophen chewable tablets, multi-element tablets, and captopril.
12 kinds of products including Lipian and Cefradine Capsules
.
Affected by the changes in China's pharmaceutical business environment, only this year, MNC, including Eli Lilly and Roche, have accelerated the divestiture of their mature products
.

In this month, AstraZeneca China also announced the adjustment of its organizational structure, formally merged the existing digestion and respiratory nebulization business, established the digestion and respiratory nebulization business department, appointed Chen Pengquan as the general manager, under the jurisdiction of marketing, sales, new product planning and Strategic marketing team
.

In order to better divest non-core assets, multinational pharmaceutical companies have also established new companies, such as Pfizer
.
In July 2019, Mylan and Pfizer announced that they would merge Mylan with Pfizer's patent expiring brand and generic drug business unit-Puqiang
.
After "slimming", Pfizer focused on the biopharmaceutical business
.

This time, it has split up a consumer health care business with annual revenue of 10 billion pounds and is still growing.
GSK's move has also received a lot of controversy
.
Foreign media analysts believe that the core purpose of GSK is to broaden financing channels, demand higher valuations and improve operational efficiency
.
GSK plans to spin off GSK Consumer Healthcare from the company within three years and list it on the UK stock market
.