Inventory of sales expenses of 15 multinational pharmaceutical companies in the first half of the year: the highest is more than 10 billion, and the proportion is declining year by year.

R&D and sales are the two core capabilities of pharmaceutical companies, and strong sales capabilities are an important guarantee for pharmaceutical companies' revenue, and sales expenses are an important support

We sorted out the sales expenses of 15 large multinational pharmaceutical companies in the following order:

Sales expenses of 15 multinational pharmaceutical companies in the first half of 2021

Data source: The company announced the exchange rate according to the latest

As shown in the figure above, among the 15 multinational pharmaceutical companies as a whole, most of the sales expenses account for more than 20% of their revenue

Johnson

Johnson & Johnson ranked first, with sales expenses of US$11.

Source: Johnson & Johnson announcement

The company stated that it increased brand marketing expenses in the first half of this year.

Statistics of Johnson & Johnson's sales expenditure, year-on-year growth rate, and revenue ratio in recent years show that although the values ​​have increased and decreased, the overall revenue ratio has shown a downward trend year by year.

Johnson & Johnson’s main business consists of three major sectors: pharmaceuticals, medical devices, and health.

Novartis

Novartis’s sales expenses in the first half of the year were US$7.

Among them, Entresto (ARNI) in the innovative drug sector grew rapidly, and Cosentyx (Kesanting, IL-17A) maintained the top sales list

Statistics on Novartis’s sales expenditure, year-on-year growth rate, and revenue ratio in recent years.

The company stated in the conference call that Novartis began its deployment in China a few years ago, investing the necessary infrastructure in the pharmaceutical and oncology fields, and establishing a sales force in order to achieve long-term growth

AstraZeneca

In the first half of this year, AstraZeneca’s sales expenses were US$6 billion and total revenue was US$15.

On February 28 this year, AstraZeneca China and Junshi Biotech (1877.

There is no doubt that although AstraZeneca’s overall sales expenditures accounted for the highest proportion of revenue among multinational pharmaceutical companies, data in recent years have clearly pointed out that its proportion has declined rapidly.

Junshi cooperated with AstraZeneca and formally took a fancy to AstraZeneca's sales ability

Roche's sales expenses for the first half of 2021 were US$4.

In terms of sales in the Chinese market, at the end of last year, Roche announced that it would change its traditional sales model and establish a "product line model", "regional model" and "ecosystem model" in 2021
.
In December last year, Roche set up two special areas in Guangdong Province and Sichuan and Chongqing to explore the "regional model"
.
These two areas will be fully responsible for the marketing, sales, medical, regional access and other related business functions of all Roche Pharmaceuticals products in China (except lymphoma and rare diseases)
.
The "regional model" and "ecosphere model" allow medical representatives to have more autonomy, from the previous complex multi-party customer interaction model to a simple and direct one-to-one model, and strive to transmit more accurate product knowledge to clinicians by front-line employees , Related functions of product marketing
.

Summarize

Sales expenses have always been an important expenditure for pharmaceutical companies, both at home and abroad.
Hengrui Pharmaceuticals recently disclosed sales expenses of 4.
665 billion yuan and revenue of 13.
3 billion yuan in the recent interim report, and sales expenses accounted for 35% of revenue
.
The sales cost of pharmaceutical companies is increasing year by year.
On the one hand, it may be due to the importance of major pharmaceutical companies on the sales sector.
On the other hand, it also indicates that a large number of new drugs have been launched in recent years, and there are also many aspects such as market development and team building.
With increasing expenditures, most multinational pharmaceutical companies are also actively adjusting their sales strategies in various countries
.

Just like the impact of the drug registration system implemented on December 1 last year, whether it is a multinational pharmaceutical company or a domestic pharmaceutical company, the relative revenue growth is consciously reducing sales expenditures, and more pharmaceutical companies are gradually abandoning the traditional belt.
The gold sales model shifted to professional academic promotion
.
The overall atmosphere is still showing a good positive trend, and it is expected that the focus of sales in the future will shift to more professional and academically meaningful new drugs
.