The Butterfly Effect Shows That The Price Of Drugs Has Dropped Significantly, The Sales Team Has Been Dissolved, And The Industrial Structure Has Been Remodeled.

Map / Song Wenhui photo

The impact of drug 4+7 purchasing is still spreading.

It is a fact that the sales team with the volume of purchase is disbanded and the successful bidder is disbanded. In October 20th, in an industry conference, a long-term concern for the pharmaceutical industry investors said that the industry is undergoing tremendous changes. The past drug price system and sales mode have been broken.

The successful bidder mentioned by the above-mentioned investors is Senofi, a multinational pharmaceutical company that has won the bid in the second volume purchase. In October 21st, Sanofi responded to the twenty-first Century economic report reporter that the disbanded information of the group was not true; a Jialin pharmaceutical insider admitted that it was not convenient to comment on the matter of the agent.

However, there are reports that the Plavix medical team has made adjustments. A senior member of the pharmaceutical industry told the twenty-first Century economic news reporter that after the landing of the quantity purchase, both the foreign company and the local enterprise, whether it was the marking or winning the bid, the sales team had adjusted.

Purchasing with quantity has triggered the butterfly effect of the pharmaceutical industry. Wyman Wong, a senior pharmaceutical marketing expert, pointed out to the twenty-first Century economic news reporter that with the landing of the quantity purchase mode and the sharp reduction in the price of drugs, the above sales / medical representative team and sales marketing mode have also changed.

This industry reform, after the pharmaceutical industry policy closed door, Beijing Jialin Pharmaceutical General Manager Liu Wei said, the reason why the industry will be brought about by the volume purchase shock, because "the development of the pharmaceutical market is the fundamental of the national medical policy, many pharmaceutical companies have in the pharmaceutical market development and national policy adjustment, adapt to and adjust the attitude of the policy".

Team dissolution?

Recently, the news about the disbanding of Sanofi provia's product team has been bubbling with excitement, which has caused great waves in the industry. As a star product, the company has received great attention. It has long occupied the main share of the global antithrombotic drug market. Sales in China's public hospitals also occupy nearly 60% of the market share. After the patent term, the market share is still rising.

In September this year, the second wheel quantity procurement to the national expansion of the bid, Senofi won the price of 2.54 yuan / piece, the local generic pharmaceutical company Xin Li Tai was squeezed out of the Bureau.

It is against this background that news about the dissolution of the group of products has been heard. Although the price of drugs has been reduced, the mode of price changing has guaranteed the quantity of products, so the reliance on Medical Representatives has been reduced directly.

Shi Lichen, founder of Beijing Ding Chen medical management center, pointed out to the twenty-first Century economic report reporter that based on this point, no matter local enterprises or transnational pharmaceutical enterprises no longer need so many salesmen, the abolition of medical representatives and the reduction of sales expenses are also inevitable.

However, Sanofi responded to the twenty-first Century economic report reporter that the news of the disbanded team is not true. With the changing market environment and the recent new health care initiatives, the business model will be carefully evaluated to better meet China's market demand and continue to maintain a successful position in the market.

Coincidentally, Jialin pharmaceutical company, a local generic drug company, has also heard the news of dismissing the sales team. Unlike Sanofi, the reason for its dissolution is that it failed to win the bid in the volume purchase bid. The above senior personage explained to the twenty-first Century economic report reporter that the disbanded company was not the sales team of Jialin pharmaceutical itself, but the sales team of the Aaron agent who had not won the bid. Multiple information sources also corroborated the message.

In fact, the sales situation of ah Le is not too optimistic. Alley exclusive bid winning the first tire quantity, Jialin pharmaceutical industry paid 83% price cut before the success, the expected sales growth did not appear, Jialin pharmaceutical industry after the performance of the promise fell sharply, and even triggered the Shenzhen Stock Exchange inquiry.

"In recent months, the industry has been circulating whether it is foreign investment or the mature drug team in the internal enterprises to abolish the promotion staff rumors Oota Mi." The above senior personage pointed out.

It is also reported that the headquarters of new products and specialist drugs of Hsin Li Tai are also ready to adjust the structure. The industry analysis said that the main product of the company was in September. In addition, there have been reports of adjustment of sales departments by many enterprises. For example, at the beginning of this year, many well-known pharmaceutical companies such as Huasen pharmaceutical, Erhua pharmaceutical and Heng Rui pharmaceutical had already made adjustments to the sales department, or even explicitly reduced investment in the sales link.

"Under the impact of" 4+7 ", the multinational pharmaceutical companies have the following innovative medicine to supplement, and the team is also easy to shift jobs. There are hundreds of varieties of domestic pharmaceutical companies sharing risks, and the east side does not brighten the West. The senior official said.

Butterfly Effect

Whether winning the bid or losing the bid, the news came out of layoffs and disbanded the sales team. This embarrassing situation is only a part of the butterfly effect of the pharmaceutical industry.

"Under the background of" 4+7 "gathering, the price of drugs, the role of medical representatives, sales and marketing mode, and product structure of pharmaceutical enterprises are also undergoing profound changes. Wyman Wong pointed out. In fact, the goal of the centralized drug purchase and use pilot scheme is to achieve a marked reduction in the price of drugs and to reduce the burden of drug expenses, which also includes reducing the price of the original research drug that has passed the patent protection period.

In the past, many of the original research patents have not been substantially reduced after the patent expired. Hu Jiqiang, chairman of Kang Bei Bei, once told the twenty-first Century economic report reporter for example that after the patent period, the price plummeted in the foreign market, while the price in the Chinese market was still strong, and even maintained a good market growth rate.

From the perspective of purchasing policy with quantity, the situation is changing. In addition to local enterprises, after the first tire purchase, the strategy of multinational pharmaceutical companies also changed, and increased the price range in participating in the expansion.

In the second volume purchase, there were more than ten multinational pharmaceutical companies, including 7 Foreign breeds of 6 foreign companies. Compared with the minimum purchase price in 2018, the average price of the selected products decreased by 59%, compared with the average price level of 25% in the "4+7" pilot level.

The senior personage briefed reporters on twenty-first Century economic report. In the process of "active" participation in quantity purchasing by multinational pharmaceutical companies, many enterprises have integrated the expired original research patent drugs, which also directly led to changes in the marketing mode and promotion mode of enterprises, and local pharmaceutical companies also merged and collate their own varieties.

In October 22nd, a provincial-level agent told the twenty-first Century business reporter that such things as Jialin pharmaceutical agents disbanded the product team were normal or later. "A product of our agent, because of the coincidence of the selected drugs with the quantity purchased, the product team is facing the dissolution, and the medical representatives are transforming and promoting other products."

Earlier, Wu Xin, general manager of China region, told reporters in an interview with the economic news reporters in twenty-first Century that he had made great adjustments to China's business model than he did in China, including changing the position of medical representatives from sales promotion to medical information partners, and the assessment plan was also fundamentally adjusted.

After taking quantity purchases, some chronic drugs become cheaper. Especially in the case of "4+7" expansion, enterprises are more willing to choose to cooperate with agents in Outsourcing Sales than reducing costs and increasing profits. The form of outsourcing CSO will be more standardized.

Reshaping industrial pattern

Not only in the Chinese market, recently, the global market has also exposed the news of layoffs of multinational pharmaceutical companies. In January 2019 alone, 3 large multinational pharmaceutical companies announced layoffs, such as Pfizer's announcement of the closure of 2 India factories. Recently, it has been reported that Mercedes announced that it will abolish about 500 jobs in many states in the United States from January 3, 2020, mainly affecting sales staff and a small number of marketing personnel.

Shi Lichen analyzed the twenty-first Century economic report reporter. On the surface, multinational corporations cut their jobs in order to cut costs, focus on dominant businesses and adjust their strategic structure, but behind this is more dramatic changes in the industrial structure and the re shaping of the market structure, and the Chinese market will create a series of changes triggered by the policy of "4 +7" with quantity procurement, which will reshape the Chinese pharmaceutical industry.

The introduction and implementation of the "4+7" procurement policy announced the end of the era of high profits for domestic generic drugs. Shi Lichen believes that a large number of inferior generic drugs will be eliminated, the future will have a certain innovation and cost advantages of raw materials preparation integrated enterprises will seize the initiative.

Like many industries, the pharmaceutical industry is in the window of adjustment and transformation. Fundamental changes are at hand. For enterprises, the transformation of business operation mode, the adjustment of investment strategies and the building and upgrading of new capabilities are all imminent. Innovation driven and healthy China's strategy landing is a great opportunity for the development of the entire industry. At this year's Xi Pu conference, Su Caihua, vice president of China health information, pointed out to the twenty-first Century economic news reporter.

It is understood that local leading enterprises such as Heng Rui medicine, Zhengda Tian Qing, Shiyao group, and Coren pharmaceutical industry, although no direct mass layoffs have been reported, have turned to innovative drugs and high-end generic drugs.

For example, in the summer of 2018, Heng Rui pharmaceutical stopped the generic generic drug project. For this industry conference in October 9th, sun Yong Yang, chairman of Heng Rui medicine, said that to change the survival status of enterprises and have more competitive advantages, we must take the road of innovation.

Not long ago, for the topic of purchasing with quantity, Liu Wei, general manager of Jialin pharmaceutical company in Beijing, said that in the face of policy changes, enterprise innovation should not only stay on drug innovation, but marketing innovation is also an area that needs to be focused. "Jialin's strength is to make generic drugs. Enterprise strategy innovation, enterprise market mode and marketing mode innovation are the most fundamental way to solve their own development."