Part of Pfizer's three major businesses or buried pens for stripping generic drugs

Original title [Pfizer partially disassembles three major businesses or hides pens for stripping generic drugs] In the early days, the pharmaceutical giants, who were keen on M & A to develop diversified businesses, may be slowing down and setting off a wave of splitting Pfizer, a multinational pharmaceutical giant, announced on Monday that it plans to split its business into three business units, two of which will be global innovation and the other, called value, which will include both mature and emerging markets According to the information sent to reporters by Pfizer China yesterday (July 30), the global innovation department includes innovative product lines, which mainly sell brand drugs protected by patents, while the value business department mainly operates the sale of generic drugs and products about to expire patents In an interview with reporters, an insider from a foreign-funded pharmaceutical company said that from the perspective of the current internal split of Pfizer, it is likely to prepare for the formal split later The main reason for the company's business split is that the operation mode of brand drugs and generic drugs is different "The split obviously works in the European and American markets, but the emerging markets are different, so whether the split can be in It remains to be seen that emerging markets will work " Split into three business units According to Pfizer, one of the two divisions will be led by geno Germano, President of the innovative products group, which generally includes products that are expected to remain patented beyond 2015 across multiple therapeutic areas, mainly including anti-inflammatory and immune, cardiovascular / metabolic, neuroscience and pain, rare diseases and women's / men's health Drugs Another innovative business segment, vaccines, oncology and health drugs, will be led by Amy Schulman, President of the vaccines, oncology and health drugs group, each of which will operate independently around the world In addition, the value business unit will be led by John young, President of the value products group In addition to the products that have lost patent protection, this department also includes mature drugs and bio generics that still have patent protection but will lose patent protection in most markets by 2015, as well as cooperation in current and future mature products "In mature markets such as the European and American markets, the sales methods of patent drugs and generic drugs are totally different For example, drugs that have passed patent protection may be directly handed over to a third-party insurance (reassurance insurance) Company for purchase and sales The company will no longer promote them, and there is little investment " Said the foreign pharmaceutical companies In general, patent drugs bring huge profits to the company, while generic drugs bring strong cash flow to the company A pharmaceutical marketing expert told reporters that because there is no competition for patent drugs, the developed market is fully enjoyed by itself, and the profits for enterprises are high When the patent expires, there will be generic drugs participating in the competition of the original researchers, the price will fall, and the profits will become thinner "In terms of marketing, patent drugs are mainly promoted by academic, while non patent drugs are mainly promoted by low price There may also be means of academic promotion, but the proportion has declined In short, patent medicine is to cultivate a market, and generic medicine is to enter the competition for cake directly " Said the marketing experts Pfizer said it would provide financial transparency information for the three business units starting with its financial report for the first quarter of 2014 Or prepare for further splitting Pfizer said each of the three businesses would include mature and emerging markets This also means that the business of emerging markets, including China, will be divided into three departments for operation The reporter learned that Pfizer had put brand prescription drugs and generic drugs in different baskets in the United States and the European Union But in other countries, especially emerging markets such as China and Brazil, the business model is totally different Therefore, after this round of internal split and integration, what will happen to emerging markets including China? Will the relevant business operation mode change? Pfizer China did not make a statement "In fact, in mature markets such as Europe and the United States, it may be very effective to separate brand drugs and generic drugs, which is determined by the operation mode of drugs." However, emerging markets are slow to start Some drugs with expired patents have lagged behind in market performance due to their later time of listing in Europe and the United States, so there is still a lot of room for development even if the products pass the patent protection period, said the foreign enterprise personage He also said that in emerging markets, even if the product has passed the patent protection period, enterprises still need a lot of market investment to have a better market performance If the operation of the European and American markets is fully adopted, the products that would have a good performance may also stagnate In fact, Pfizer announced earlier this year that it would begin to examine the finance and marketing of branded drugs and generic drugs separately, which was interpreted by the industry as a prelude to the sale of its generic business The reporter understands that Pfizer has made great changes to the composition of its business in recent years Last year, the company sold its Wyeth nutrition unit to Nestle for $11.8 billion, and then split its animal health business into a separate listing According to foreign media, Pfizer CEO Ian read recently said that Pfizer may split into two parts, but it will not decide immediately in the near future "Not surprisingly, the company is now preparing for a formal split." "And it is very likely that the brand medicine and generic medicine will be separated into two companies to operate independently, I heard that the company has also started to discuss this issue with investors," said the foreign enterprise personage In fact, in recent years, many giants have divested their businesses and specialized in the main business In 2009, Bristol Myers Squibb separated and listed its Mead Johnson milk powder business Since January 2 this year, Abbott has been officially divided into two independent listed companies, one of which uses Abbott's name to operate diversified medical product businesses including medical equipment, diagnostic testing, generic drugs and nutrition products, and the other one, called aberway, is engaged in the original R & D drug manufacturing industry "From the perspective of the split method, Abbott's approach is similar to the internal split of Pfizer." Said the medical marketer Not only that, more than one pharmaceutical company has released a signal to divest its generic business At the end of April, Shaun Grady, vice president of AstraZeneca, was quoted as saying that the company officially decided to spin off the generic drug business "In recent years, many pharmaceutical enterprises have fallen into the dilemma of high investment and low return The expiration of patents, long period of R & D and the urgent demand for funds have forced cross-border pharmaceutical enterprises to shrink the front line and return to the main pharmaceutical industry from the diversified expansion path." "Separating mature products from proprietary products is likely to be the development trend of the pharmaceutical industry in the next few years," said the pharmaceutical marketer