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2016 foreign companies in China do? Layoffs, price...
 
Author:中國銘鉉 企劃部  Release Time:2017-1-9 9:45:01  Number Browse:1145
 

Medical network on January 9 - just the past 2016 years for foreign drug firms is not calm for a year. Pharmaceutical patent cliff, the wind of the medical corruption is the more fierce, combined with the new drug research and development is slow, and constantly promote the adjustment of the company, a lot of foreign drug companies chose cuts in this year, the lower part of the product price, and began to seek cooperation with Chinese drug companies. Patents expire, policy tightening, the bidding price, price negotiations under the problems we face at home and abroad, such as foreign drug companies need to seek a new mode of development and growth in China.

The sword holding layoffs

Well-known multinational drug companies, roche, Johnson from new job cuts. Reported that Johnson &johnson over-the-counter department round of job cuts at the end of December 2016, 32 representative and four regional managers face unemployment; Early next year will be the second round of layoffs, is expected to more than 170 people in the team will be down to more than 90 people, nearly half of workers will be laid off. At the same time, roche pegasys drug department will also carry out layoffs, according to sources, the existing employees were questioning, specific details temporarily unknown layoffs.

If opened the curtain of time, you can clearly see that job cuts in the past year for foreign drug firms is not strange. Early last year, Johnson & Johnson has announced that it will in the next two years for medical equipment department layoffs of some 3000 people, number occupies a global workforce by 4% to 6% of the department; Another foreign drug companies novartis closed schlieren biological preparation department is located in Shanghai, China, and Switzerland, among them, China's Shanghai biological preparation department cut involving 18 positions, the Swiss schlieren closure of the department of biological agents involving 73 jobs; Tropical diseases research center moved from Singapore to California involving 84 jobs will be lost. Novartis said to this, the decision is for spending cuts and strengthen r&d synergies. Holding the broadsword layoffs and bristol-myers squibb, sanofi, etc.

"Foreign drug firms adopt measures to cut the main aim is to cut costs and boost performance. The Chinese government control prices, such as cancel drugs addition policy, under the influence of foreign companies in China's development path there is still a high pressure, drug prices and shrinking market has become a common phenomenon. In this case, by cut down non-core department costs, focus on the development life cycle is longer than the patent medicine, research and development more difficult, has become a consistent orientation in the transformation of foreign drug companies." Medical experts YueFeng interpretation of the basic represents the personage inside course of study for foreign drug firms layoffs in China. After the layoffs, foreign drug companies also to effective resources to focus on core sectors.

Low price change,

In the business of thin body at the same time, reduce the price of some drugs to fight domestic generics bring the fierce market competition, has become the foreign drug companies seek common goals. In May 2016, the first batch of national drug price negotiation results revealed that five involved in cancer treatment and major disease treatment drugs as a negotiation, four of them are made by foreign companies in the production of the high prices of patented drugs, imported drugs. Through negotiations, the price drop of more than 50%.

With glaxosmithkline tenofovir ester, for example, after negotiation, cost monthly drugs in patients with reduced by about $1500 to about 490 yuan. Behind the price, this strategy in China on the one hand, accord with glaxo's stated strategy, on the other hand, also reflects the drug price negotiation is committed in the country, "with price change amount" has become the foreign drug companies in China and a number of strategic priorities. Novartis, eli lilly, astrazeneca is a faithful follower of price strategy.

From third parties, according to data from 2012-2016, the world as many as 631 patent medicine expires. The world's bestselling, and 18 of the top 20 drugs will patents expire, the 18 prescription for global sales of $142 billion a year. Pharmaceutical industry is generally believed that foreign "cliff" of patent medicine has arrived. Landed, at the same time, the generic consistency evaluation is driven by domestic drug firms production are consistent with the original medicine in terms of quality and efficacy of generic drugs, from substitute the original clinical medicine, to save health care costs. This trend also brought foreign drug companies greater pressure.

The industry believes that the future, subject to the sales growth is slowing, or there will be more foreign drug companies patent medicine into the price negotiation mechanism. Third-party medical service platform Shi Lichen MaiSiKang lai's founder, said on the pharmaceutical market in the future, the patent expired foreign medicine will and generic drugs directly compete on the same platform, is the trend of The Times. Now foreign drug companies involved in negotiations, the purpose is the price for access to health insurance directory. In recent years, foreign drug companies slowdown, against the background of entering the medical insurance directory for drug sales promotion has a great pushing effect.

Conspired to survive

In addition to focus on core business and to adjust the price of drugs, and local drug firms multi-faceted cooperation has become the foreign pharmaceutical enterprise grasp the choice of the Chinese market. Official WeChat recently, Pfizer announced that will explore the new thinking of innovative products introduced into China, as a try, Pfizer will select some from r&d product line is suitable for Chinese patients disease early and has a high medical need to research and development projects, through the intellectual property rights and market authorization form, such as the project and its attached proprietary technology and other resources, to authorize in the related field with research and development ability and the innovation potential of local companies, further to carry out the localization development.

In addition to the cooperative development of innovation model, in the past year, foreign drug companies and local drug firms there are generally two kinds of cooperation mode. One is direct for asset transfer. , for instance, in May 2016, the local drug firms in nt medical statement announced that has struck a deal with novartis, to buy orthopedic brand dense cover interest related intellectual property rights, licenses and other assets, the total transaction amount is $145 million.

At the same time, there is also a foreign drug companies began to sell China rights to local companies, in order to control the cost, also can avoid the bidding policy issues such as the management of significant impact. In March 2016, astrazeneca's fist product antihypertensive drug "plendil treatment and cardiovascular medicine" according to mu "exclusive rights, for the price of $310 million and $190 million respectively, and transferred to Kang Zhe pharmaceutical company and its holding company, the Tibetan medicine in China. But from another perspective, the two ways are to some extent, realize the win-win situation with local drug firms. YueFeng believes that over the next two years, this kind of a win-win pattern will continue, foreign drug companies try to through all sorts of innovation cooperation mode to promote the localization will become one of the core strategy in China.

 
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