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    3. Foreign generics giants split Jiangsu pharmaceutical enterprises to follow up and test water
      2022-11-29
      In 2014, the foreign generics giants could not help but stir. On January 1, the commercial business of Pfizer, a global pharmaceutical giant, was officially separated and operated independently. At the same time, Paul Bissaro, CEO of Atvis, the world's third largest generic drug manufacturer, announced that the company would completely withdraw from the Chinese market.

      This series of news was interpreted by the industry as the global generic drug market will face major adjustment, and the domestic market share of Chinese generic drug enterprises is expected to increase. Among them, port city enterprises represented by Hengrui will face significant development opportunities.

      Faced with the prediction of the industry, pharmaceutical enterprises in Hong Kong City have said that the "retreat for survival" policy of foreign generic pharmaceutical enterprises is expected to free up the market for their own development, but the key to seize the opportunity is to rely on their own strength.

      Intensified competition urges domestic generic drug enterprises to take the road of diversified development

      In 2013, Zhengda Tianqing announced that it had obtained the certificate and production approval of the first generic new drug of chronic myeloid leukemia drug imatinib capsule (trade name: Granico), which marked that Zhengda Tianqing had added another flagship product of anti-tumor generic drugs.

      Experts said that Zhengda Tianqing is an important R&D enterprise of liver disease drugs in China. For a long time, the enterprise has been committed to the R&D of liver disease drugs. However, with the intensification of competition in the pharmaceutical industry and the increase of market risk, Zhengda Tianqing has adjusted its development strategy, abandoned the single product line development strategy with greater risk, and moved towards the era of diversified product line development.

      In China, the number of generic drug enterprises that follow the diversified development path like Zhengda Tianqing is increasing. With the business expansion of Chinese generic drug enterprises, it is difficult for foreign generic drugs with high prices to achieve good performance. For example, Sandoz, a generics giant under Novartis, as the leader of foreign generics in the world, although the performance growth of Sandoz in the last two years is relatively fast, there is still a big gap from its goal of 10 billion sales.

      Industry insiders said that with the promotion of medical reform, drug price reduction has become the focus of reform. Foreign generic drugs may enter the era of the same quality and price as domestic generic drugs in the future. In this context, domestic enterprises will take the initiative in the market by virtue of their "local combat" advantages. In order to survive, foreign-funded enterprises have to retreat to survive and develop in a new way, which leaves new market space for port city generic pharmaceutical enterprises including Hengrui.

      New market gaps need to be filled by powerful enterprises

      The relevant person in charge of the Municipal Science and Technology Bureau said that although the international generic drug enterprises appeared to leave China, the market space left by these enterprises needed to be filled by competent enterprises.

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