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YUSHI Pharmaceutical
Large pharmaceutical company's emerging market business increased by 6.1% month-on-month
Time: 2021-08-18
[China Pharmaceutical Network Enterprise News] According to the Bernstein analysis report, in the second quarter of 2017, the emerging market business of large pharmaceutical companies increased by 6.1% from the previous month, reaching the fastest growth rate in the past two years. The growth between different companies was There are fast and slow points.
Companies with growth in the emerging pharmaceutical market mainly include AstraZeneca, GlaxoSmithKline, Eli Lilly, Merck, Novartis, Pfizer, Roche and Sanofi. Compared with their performance in emerging markets, the pharmaceutical sales revenue of these companies in the United States and other regions has only increased by 0.1%. Among the emerging markets, Pfizer performed best, achieving 7% revenue growth, mainly driven by the company's basic healthcare business.
Emerging pharmaceutical markets also have regional differences. In some developing countries, there are risk factors that pharmaceutical companies need to face, such as Venezuela’s currency depreciation, corporate mergers and acquisitions, price controls, and other unpredictable factors affecting growth.
Different from the rapid growth of Pfizer, the sales growth of GSK and Eli Lilly in emerging markets in the past four quarters was only 1.8%. Bernstein analysis shows that in the second quarter of this year's sales revenue, the two companies' new pharmaceutical market share accounted for 18% and 14%, respectively.
Coincidentally, both GSK and Eli Lilly plan to carry out major adjustments to their R&D business units, and their Shanghai R&D centers will be shut down.
Unfortunately, GSK seems to be still suffering from the severe impact of business bribery in 2013. The incident caused GSK to receive a fine of 489 million U.S. dollars and slowed down the company's business development in China. Last year, GSK's former CEO Andrew Witty stated that GSK's business in China has basically resumed growth, but according to Bernstein's calculations, in addition to the sharp recovery in the third quarter of 2014 and the slightly above-average performance in the third quarter of 2016, GSK The level of business in China has been slower than that of its peers.
Even though the company involved in Bernstein in the second quarter of this year experienced a growth rate of 12.4%, GSK Pharmaceuticals still has no good data. Bernstein said that GSK’s revenue in China has dropped to single digits, which includes the impact of the divestiture. GSK did not specifically disclose its market performance in China in its first quarter financial report.
AstraZeneca is a different situation. The company has a vast business in China. 44% of its revenue in emerging markets or 13% of its total revenue comes from China. The company’s CEO Pascal Soriot has repeatedly emphasized in the earnings conference call in the second quarter: China’s performance is growing rapidly, and pointed out that although the company’s performance in the first half of 2017 has increased by 8%, if the spin-off business is removed, it will increase. The rate will reach 17%. AstraZeneca is also expanding the production capacity of its respiratory disease plant in Australia to further meet the drug demand from Chinese patients.
Sanofi’s China business showed a 17.1% revenue growth in Bernstein’s quarterly report, which was mainly due to the company’s recovery in China’s vaccine business and sales growth of other mature products.
In the long run, the Chinese government is formulating or has already implemented several related policies aimed at accelerating the approval of drugs and the clinical application of innovative therapies, which will help multinational pharmaceutical companies to further expand their growth opportunities in China. The most recent of these policies is the announcement of the 2017 National Medical Insurance Catalogue.
Roche's best-selling drugs, Herceptin, Avastin, Rituxan, and Tarceva have been added to the latest version of China's National Medical Insurance Catalog after price reductions. Although it is not known how many more patients will use these drugs to offset the loss of drug discounts, previous cases can also provide a reference.
According to a Bernstein report in July, the sales of GSK's antiviral drug Viread increased by nearly 400% in less than a year after it entered the reimbursement list. GSK reduced the price of the drug by nearly two-thirds and successfully qualified for reimbursement in 2016, with sales revenue jumping 78% year-on-year. However, AstraZeneca’s Iressa’s sales in China increased by 89%, but sales fell by 5%. Bernstein analysts said these are just initial performances and are not suitable for reference for a comprehensive comparison of other drugs.
Although emerging pharmaceutical regions are still stimulating the growth of the pharmaceutical industry, Bernstein also reminded that generic drugs will face more pricing pressure in these regions. India is the most typical country for lowering drug prices. India’s National Drug Pricing Agency, in accordance with the Indian Drug Price Control Regulations, has taken several actions to tighten drug prices, aiming to put pressure on domestic and multinational pharmaceutical companies.
In some cases, the economic turbulence and political environment of emerging markets may also hinder the revenue growth of large pharmaceutical companies. A recent example is the national situation in Venezuela, which started in the fourth quarter of 2015 and still has an impact today. The economic crisis and political turmoil that have swept across South America have caused significant declines in the businesses of Sanofi, Pfizer and Novartis in these regions.
Regarding all these challenges, there is no doubt that Eli Lilly and GSK will not be the only two companies that are reducing expenditures in emerging markets. Exiting would be the wrong choice.
Bernstein analyst Tim Anderson said in the report: "Pharmaceutical companies should continue to increase investment to gain greater market share in the longer-term and inevitable transition from generic drugs to higher-value patented drugs." (Sina Medicine Compilation/David)
Original title: Big pharmaceutical company's emerging market business achieved the fastest growth rate in the past two years
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(Source: Sina Pharmaceutical News)
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