Mengdi sells China business for $1 billion?

In March 2021, Bristol-Myers Squibb stopped selling 12 drugs

In March 2021, the State Food and Drug Administration issued an announcement to cancel the registration certificates of 226 drugs, of which China-US Shanghai Bristol-Myers Squibb Pharmaceuticals Co.
, Ltd.
voluntarily applied for the cancellation of 12 products: including acetaminophen oral solution, acetaminophen chewable tablets, and multidimensional elements sheet, captopril tablets, capsules and the like cephradine
.

Among the drugs cancelled this time, captopril tablets were extremely fierce in the third batch of national procurement bids.
It is reported that there are currently more than 100 domestic companies producing and selling cefradine capsules
.

In March 2021, Roche layoffs Rochefin antibiotic team

In March 2021, it was reported that Rochefen (Ceftriaxone) team was notified of the layoffs because Rochefen's sales representatives did not meet sales expectations, and due to the impact of the epidemic, pediatric patients were significantly reduced and the use of antibiotics The amount has also fallen sharply
.

Data show that Rochefen is a long-acting, broad-spectrum third-generation cephalosporin antibiotic.
After the expiration of the Rochefen patent in 1996, a large number of generic drugs emerged on the Chinese market
.
Now, under the influence of a series of policies such as centralized procurement, it seems understandable that Roche abolished the product sales team
.

In addition, some analysts said that Roche's layoffs may mean that it will sell the distribution rights of Rochephene products.
As early as March 2018, Roche transferred its recombinant human erythropoietin product (trade name: Rocoman?) The right to promote and distribute within mainland China has been officially granted to Eton Pharmaceuticals
.

In addition, it is worth mentioning that in March this year, Roche announced that its two major oncology drug products Xeloda (capecitabine tablets) and Tarceva (erlotinib hydrochloride tablets) will be marketed in mainland China.
The promotion right was granted to Baiyang Pharmaceutical
.

In early 2021, Daiichi Sankyo merged its anti-infection and respiratory analgesia product lines and laid off employees

In March 2021, news broke that Daiichi Sankyo is layoffs.
This layoff involves anti-infection and respiratory analgesia product lines
.
In addition, Daiichi Sankyo plans to merge cardiovascular, anti-infection, and respiratory analgesia lines.
One of the main reasons is that the company's respiratory analgesia line Le Song tablets and anti-infective product lines Kolabitu tablets entered the fourth batch of countries.
Collectively
.

Daiichi Sankyo stated that in the future, while optimizing its business, it will concentrate more of the company's resources in the field of oncology
.

At the end of 2020, Takeda divested part of its prescription business in mainland China

On December 21, 2020, Takeda Pharmaceuticals announced that it will divest part of its prescription drug business in Mainland China to Hysen Biosciences.
After the completion (expected on June 30, 2021), Takeda will receive a total transaction amount of US$322 million
.

It is reported that the non-core business of Takeda’s divestiture is the product portfolio in the cardiovascular and metabolic fields, including products such as Bilos, Yanindine, and Ecoto.
Among them, Bilos has entered the volume procurement, and the market share of other products is not very large.
High
.

Although Takeda Pharmaceutical has repeatedly claimed that the sale of non-core businesses is to focus on the company's strategy, it is generally believed that after the completion of the US$62 billion acquisition of Shire Pharmaceuticals in January 2019, Takeda Pharmaceuticals has nearly 40 billion US dollars in front of it.
For the debt, Takeda had to abandon part of its traditional business and concentrate on advancing into new areas such as rare disease treatment
.

It is worth mentioning that since the Shire acquisition, Takeda has conducted multiple divestitures around the world in the past year or two:

 In September 2019, Novartis announced the sale of its Suzhou plant for 790 million yuan

In September 2019, Novartis announced that it intends to transfer 100% of the equity of Suzhou Novartis Pharmaceutical Technology Co.
, Ltd.
, which has divested its technology and drug development assets, to Jiuzhou Pharmaceutical for 790 million yuan
.

It is worth noting that the lift-off technique and drug development assets held by Novartis - means not including Novartis technology and drug development assets, mainly factories, production lines, process equipment and so on
.
It is reported that after the transfer, Jiuzhou Pharmaceuticals will supply Novartis Group's three APIs or intermediates for anti-heart failure treatment, breast cancer treatment and leukemia treatment to Novartis Ireland through Suzhou Novartis
.

It is worth noting that in recent years, Novartis has continuously divested its non-core businesses around the world to adjust its business focus:

Previously, Novartis announced that it agreed to sell its subsidiary Sandoz's skin disease business and oral generic solid preparations business in the United States to Arabindo (United States) Pharmaceuticals for $1 billion
.

In addition, Novartis also announced the sale of a 36.
5% stake in its consumer medical joint venture to GlaxoSmithKline for $13 billion, and it will split Alcon's eye care business into an independent company
.

   
In July 2019, GSK transferred its Suzhou factory and chronic hepatitis B drugs

In July 2019, GSK China announced the transfer of its Suzhou plant and its hepatitis B drug lamivudine tablets (Hepudin) to Fosun Pharma at a price of 250 million yuan
.

Hepudin was approved to be marketed in China and the United States in 1998 for the treatment of chronic hepatitis B.
It was once the best choice for patients with hepatitis B treatment.
The sales volume reached one billion in just a few years after the listing, and GSK also spent a special amount on this.
The US$1.
2 billion Suzhou factory was built, which was once one of GSK's largest factories in the world with total investment
.

However, with the expiration of Hepudin's global patents in September 2006, and the continuous approval of similar generic drugs and original research drugs for listing and entry into China, Hepudin's core competitiveness has gradually declined
.
Especially after the country's centralized procurement, GSK He Puding suffered a heavy blow, the market space was sharply compressed, and the economic benefits were not as good as before.
Therefore, GSK seemed to have to let go
.

.
.
.

It can be seen that under the pressure of patent expiration, with the advancement of a series of China's medical reform policies such as consistency evaluation and mass procurement, focusing on core business, spin-off micro-business, and abolishing teams have become the key to multinational giants According to the words, some experts believe that this is not only a trend of accelerating the substitution of Chinese generic drugs, but also a trend that drives global pharmaceutical companies to be more pragmatic and innovative
.

Reference materials:

1.
Pharmaceutical Cooperative Investment and Financing Alliance: "Heavy! Mundi Pharmaceuticals plans to sell its China business for more than US$1 billion? 》

2.
Sina Medicine:

"Lilly O'Tangjing's business model adjustment, a large number of multinational pharmaceutical companies "patent cliff" is coming? 》

"Cancellation of 1 subsidiary, suspension of sales of 12 drugs Bristol-Myers Squibb's assets in China "slim"

"burst! Roche, Daiichi Sankyo layoffs, involving blockbuster antibiotics"