With the intensification of changes in China's pharmaceutical market, the investment layout mode of multinational pharmaceutical companies is changing

【Pharmaceutical Network Market Analysis】The Chinese market is an important market
in the global strategy of multinational pharmaceutical companies.
Data show that as of 2018, the world's top 50 multinational pharmaceutical companies have set up branches in China, and the market focus of some multinational pharmaceutical companies has also begun to shift
to China.
As of 2020, multinational pharmaceutical companies have set up 47 factories and 25 R&D centers in Chinese mainland, with an annual R&D investment of more than 12 billion yuan and more than 130,000 employees in Chinese mainland
.
The industry generally believes that China's pharmaceutical market has great potential and is ushering in a critical period
of rapid growth and high-quality development.
In this context, it is not only an important source of capital and talents, but also an important source
of power for the growth of many multinational pharmaceutical companies.
On April 28 this year, Sanofi announced its 2022Q1 results, achieving revenue of 9.
674 billion euros, a year-on-year increase of 8.
6%.

Among them, in the Chinese market, Sanofi's revenue increased by 13.
4% (901 million euros)
year-on-year.
In addition, Novartis' sales revenue in China in 2021 also increased by 18% year-on-year to US$3.
052 billion, accounting for 6% of Novartis' total global revenue.
It is reported that Novartis noted in the financial report that medical insurance has become the main driving force
.
It is worth noting that in recent years, with the introduction of reform policies such as centralized drug procurement and consistency evaluation, the Chinese pharmaceutical market has undergone earth-shaking changes, and the era of high gross profit is gone
.
In this context, multinational pharmaceutical companies are also looking for new partners to deploy the domestic market
under the new policy situation.
It is reported that during the recent Expo, a large number of multinational pharmaceutical companies are laying out
in China from improving the supply chain system, to serving users' chronic disease management, to the research and development and landing of innovative drugs.
For example, AstraZeneca's respiratory business line signed an agreement with JD Health on the omni-channel agency of Boliconil tablets to jointly promote the accessibility and convenience of
drugs online and offline.
It is understood that Boliconi tablets are classic drugs for the respiratory system, but due to the double squeeze of the market and policies, the in-hospital market growth of the original manufacturer AstraZeneca has slowed down
.
This cooperation between the two parties can enhance the accessibility of drugs in the retail channel of Boliconi tablets and reduce the circulation link
.
At the Expo, Novo Nordisk announced that it will invest 400 million yuan to establish Novo Nordisk (Shanghai) Investment Co.
, Ltd.
to control its business engines in Chinese mainland production, trade, research and development, so as to integrate and optimize Novo Nordisk's business resources in China and jointly promote the upgrading of the layout of the entire industry chain
.
In addition, Johnson & Johnson also announced that it will continue to increase its investment in R&D and innovation in China, build an open medical innovation ecosystem, and establish a comprehensive partnership with Hangzhou Duoxi Biotechnology Co.
, Ltd.
to jointly develop new ADC drugs
.
In general, from investing in factories and establishing representative offices in the past, to gradually starting to establish global R&D China centers and establishing international life science innovation parks and industrial parks in recent years, it has fully demonstrated that the investment strategies of multinational pharmaceutical companies in China have undergone tremendous changes
.
The industry expects that with the improvement of China's independent innovation capabilities, scientific and technological breakthroughs, and the invention and creation of talents, China will gradually transform from the original marketing market and manufacturing base to the source of innovation; At the same time, multinational pharmaceutical companies will also look for more new partners to build a stronger "ecosystem"
under the new policy situation.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.