What is the sales performance of multinational pharmaceutical companies after entering centralized procurement and medical insurance?

Since November, multinational pharmaceutical companies including Novartis, Merck, Sanofi, AstraZeneca and other multinational pharmaceutical companies have released their 2021 three-quarter reports, and their performance in China has also appeared, with mixed results
.
In the first nine months of this year, among the multinational pharmaceutical companies that performed well in China, for example, Novartis’s revenue in the Chinese market in the third quarter was US$839 million, a year-on-year increase of 19%; in the first nine months, the total revenue in the Chinese market was US$2.
2 billion , An increase of 15% year-on-year
.
Novartis said that most of the revenue in the Chinese market comes from the innovative drug business
.
Merck’s third-quarter revenue was $13.
1 billion, an increase of 20% year-on-year, second only to AbbVie
.
Regarding performance growth, Merck said it was mainly driven by strong demand in the Chinese market
.
The proportion of China's pharmaceutical sales revenue increased from 7.
4% in the first quarter of this year to 11.
1% in the third quarter.
In the third quarter, Merck’s China market revenue was US$1.
278 billion
.
In addition, Sanofi’s Chinese market sales data revealed that in the third quarter of this year, Sanofi’s revenue in the Chinese market was 782 million euros, a year-on-year increase of 12.
8%
.
It is worth mentioning that due to factors such as centralized procurement and medical insurance, the sales of some multinational pharmaceutical companies have experienced a decline, which has even brought resistance to the performance of China
.
For example, Roche's Pertuzumab entered China's medical insurance product through negotiations in 2019.
However, in the first three quarters of 2021, Roche's Chinese market growth rate was only 2%, while the Japanese market was 20%, the European market increased by 3%, and the US market It fell by 5%
.
In fact, affected by medical insurance negotiations, not only Pertuzumab, but Bevacizumab, Trastuzumab, and Rituximab also showed a decline, with a decline of more than 30%
.
AstraZeneca's performance in China in the third quarter was US$1.
49 billion, a decline compared with 20% in the first half of this year
.
Among them, the sales of osimertinib in China declined significantly, with a drop of 10%, mainly due to the impact of medical insurance negotiations
.
AstraZeneca stated in its quarterly report: Since the implementation of the new medical insurance catalogue in March this year, the number of patients covered by osimertinib has not offset the impact of medical insurance price cuts.

.
Judging from the actions of multinational pharmaceutical giants in recent years, in order to adapt to the changes in the Chinese pharmaceutical market environment in recent years, multinational pharmaceutical companies have become more active in participating in medical insurance negotiations and centralized procurement
.
For example, on the eve of the new round of medical insurance negotiations, many multinational pharmaceutical companies have actively reduced prices of related products, including Pfizer’s clofenac acid soft capsules on the local platform from 64,100 yuan per box to 24,650 yuan, a drop of more than 61%; The price of Jansenda Latuzumab 400mg/20ml was reduced from 19710 yuan to 8512 yuan, a decrease of 56.
8%
.
From the perspective of the industry, these foreign-funded pharmaceutical companies can significantly reduce prices before the negotiations begin, which shows that the sincerity of pharmaceutical companies to actively participate in the negotiations is directly reflected in the price of medicines
.
At present, the impact of centralized procurement and medical insurance negotiations on the pharmaceutical industry is reflected in the market structure and the capital market.
The industry believes that, on the whole, the general direction of encouraging drug innovation remains unchanged.
For pharmaceutical companies, products, especially innovative drugs After the product enters the centralized procurement and medical insurance, although the sales will decline in the short term due to price cuts, in the long run, it is expected to achieve market volume
.
According to data from the drug data platform Medicine Rubik's Cube, the sales of drugs included in the medical insurance catalog after medical insurance negotiations in 2017, 2018, and 2019 have achieved growth of 128%, 337%, and 39% respectively in 2020
.