The Three Quarterly Report Of Transnational Pharmaceutical Companies In 2019: A High Degree Of Consistency In China'S Achievements And Medical Policies.

From the end of October to the beginning of November, the major multinational pharmaceutical companies released the third quarter and the first nine months of 2019. According to incomplete statistics of the twenty-first Century economic report, enterprises in the first nine months of revenue grew more than two digits, including Roche, Novartis, Mercedes, GSK, BMS, AstraZeneca and so on. Only Pfizer and Amgen grew slightly. Pfizer, Roche, Novartis, Mercedes, GSK and Johnson have more than $30 billion in pharmaceutical revenues.

In the third quarter, Pfizer ranked first in revenue of US $12 billion 680 million, while AstraZeneca revenue grew by 22% over the same period last year, becoming the fastest growing multinational pharmaceutical company.

In terms of drugs, due to the impact of all kinds of bio similar drugs in the global market, the global sales of Miller Q3 decreased by 3.7% to 4 billion 936 million US dollars. More attention was paid to the new generation of star drugs "K drug" Keytruda, Q3, the PD-1 drug revenue grew by 62%, reaching 3 billion 100 million dollars, and the first nine months were 7 billion 973 million US dollars.

Most of the companies mentioned the high growth in the Chinese market in their earnings reports. For example, Novartis said sales in emerging markets increased by 10%, mainly driven by China's two digit growth.

But unlike in the past, because this year is the first year of "4+7" purchasing and landing, the results are beginning to show. At the same time, the national health insurance directory adjustment and negotiation have been carried out successively. The performance of multinational pharmaceutical companies in China is highly related to the policy performance, and it is directly fed back to the first three quarters of the financial industry. Many enterprises have pointed out the important impact of these policies directly in the earnings report.

Strong policy effect

The rapid growth of the Chinese market has made it impossible for multinational pharmaceutical companies to "refuse". From the second coming fair, we can see the "positive" of enterprises.

Medical equipment and medical care are the earliest "full Pavilion" exhibition area of this year's fair. Not only are there many new enterprises to enter, but also enterprises have booked fourth advance exhibition and exhibition areas ahead of schedule. In January 31st this year, the 7.1 pavilions completed investment promotion, and then opened half a pavilion in 7.2 pavilions. After the exhibition was completed in March, the exhibition area increased to 45 thousand square meters.

The exhibition area of AstraZeneca and Mercedes is as high as 800 square meters. It is the largest enterprise in the medical equipment and health care exhibition area.

At the same time, these two companies are also "most scenic" enterprises in the Chinese market in recent years. Their earnings reports have directly announced the revenue and growth of the Chinese market. The revenue of the general market in China belongs to the category of "emerging markets", which is not common among multinational pharmaceutical companies.

In the third quarter of 2019, Mercedes global sales amounted to US $12 billion 400 million, an increase of 15% over the previous year, and US $34 billion 972 million in the first nine months. Mercedes international sales account for 54% of the total sales of the quarter. The Chinese market is the best performing market in its international market, with Q3 revenue of US $898 million, an increase of 84% over the previous year, and US $2 billion 368 million in the first nine months. They are mainly driven by tetravalent and nine valence of HPV vaccine and tumor drugs. Excluding the adverse effects of foreign exchange, China's pharmaceutical sales increased by 90%.

Mercedes is one of the biggest beneficiaries of accelerated medical review and approval reform in recent years. The "rocket speed" of HPV vaccine has been approved as a typical industry. "The Chinese government has done a lot of work to speed up health care reform and promote scientific research and innovation. The best proof is a large number of new products that have been approved and listed in China in the past three years," said Mr. merwanli, President of Merck East China, on the opening ceremony of the 5 session of the fair.

AstraZeneca is another typical representative of policy benefits. In the first nine months of 2019, revenue was $17 billion 315 million, an increase of 17%, and third quarter revenue of $6 billion 132 million. Sales of new drugs increased by 62% to 2 billion 707 million US dollars, including 85% to 539 million US dollars in new drugs in emerging markets. Q3 sales in the Chinese market amounted to US $1 billion 283 million, and sales in the first nine months increased by 30% to US $3 billion 691 million.

Total sales in emerging markets increased by 25% to $2 billion 123 million, of which China's sales increased by 35% to 1 billion 283 million US dollars. Among them, the cancer drug, tare Sha Sha, increased by $2 billion 305 million, an increase of 86%, and its sales in emerging markets increased by 120% to $553 million, mainly driven by its entry into China's national health insurance directory and approved first-line treatment for lung cancer.

At the same time, AstraZeneca gefitinib (Iressa) continued to win the bid "4+7" with the volume of procurement, in the Teresa market penetration to improve the impact of Iressa, winning the bid means sales volume guarantee.

Another one mentioned in particular that Sanofi is shopping with quantity. In the first nine months of 2019, Sanofi's revenue grew by 2.2%. Q3, an emerging market, including China, has 1 billion 890 million euros in revenue, up 10% over the previous year, and 5 billion 739 million euros in the first nine months, an increase of 9.1% over the same period last year.

Senofi, a big breed, did not take part in the first round of "4+7". Despite that, sales in China increased by 3.5% to 209 million euros. Second wheel quantity purchase Sanofi "lower blood" win the bid, give clopidogrel 2.55 yuan / slice price. In the final bid list, Abono and Sanofi hopes to implement the volume purchase plan nationwide in December. But due to the net price adjustment in the channel, the two successful products are expected to drop sharply in the fourth quarter of 2019. Sanofi predicts that by 2020, sales of China and Abono will drop by about 50%.

Innovation is still the key.

Pfizer still held the first place in the third quarter's revenue of 12 billion 700 million dollars and the first nine months of its revenue 39 billion 62 million dollars, but the growth rate declined. Its biopharmaceutical revenue increased by 9%, mainly driven by Ibrance, Xeljanz, Eliquis, Vyndaqel and Inlyta, and 15% of emerging market growth.

But in the third quarter of the non patent brand and generic drug sector, Upjohn fell 26%, and 11% in the first nine months. Pfizer is also one of the most influential companies in volume purchasing. In its earnings report, it particularly stressed that Upjohn's business revenue in China increased by 2% in the third quarter of 2019, mainly due to the sales growth of Lipitor and lotion, which partly offset the negative impact from the failure to win the bid.

With innovative drugs Ocrevus, Hemlibra, Tecentriq and Perjeta listed and high demand, Roche Pharmaceuticals sales increased by 12%. In the international market, sales increased by 20%, mainly due to a large increase in the number of Chinese drug users. The effect of Herceptin on health insurance is still very significant. According to IQVIA's second quarter hospital market data, Hessaitin's growth rate was the highest, reaching 128.4%.

In Johnson's pharmaceutical business, the field of immunology and oncology grew rapidly, and its total sales reached 2 billion 168 million US dollars in the first three quarters of 2019, an increase of 50.4%. In July 2019, the drug was approved for sale in China.

Due to the continuing impact of the medical insurance negotiations and the acceleration of the implementation of drug centralized bidding, the domestic pharmaceutical market has a significant boost in the first half of the year. According to the IQVIA second quarter hospital market data, the sales volume of multinational enterprises in the second quarter of 2019 reached 59 billion 200 million yuan, up 17.5% compared with the same period last year. The sales volume of local enterprises in the second quarter was about 155 billion yuan, the growth rate was 11%, compared with the same period last year, the growth rate was significantly improved.

In terms of rolling annual data, Pfizer, AstraZeneca and Yangzi pharmaceutical ranked the top three companies. Benefiting from the negotiation of Herceptin into health insurance and continuous volume, Roche's growth rate is as high as 41.1%. From the quarterly sales of products, Jia Luo Ning of Yangzi pharmaceutical company came first. Pfizer's Lipitor and AstraZeneca Pulmicort Shu ranked second and third respectively.

But to get higher market penetration outside the policy and slow down the growth of mature drugs, multinational pharmaceutical companies need to bring more innovative medicines into China.

"I have never seen any country promote health and health from the national level like China, and have made such rapid and huge development in the innovation ecosystem, including driving the development of rare disease products," Andrew Plump, global research and development director of Takeda pharmaceuticals, said in an interview with the twenty-first Century economic report.

As a result, Takeda also put forward new requirements and support for the innovation and development of the Chinese market. "Since 2017, China has become one of the four key areas of research and development in the world, and is tied to the United States, Japan and Europe." Wang Lin, director of the Asian Development Center, said that in any global project in the field, China must ensure that China and the United States, Japan and Europe will synchronously develop and submit new drug applications from the early development plan. "Wu Tian has set up special funds to support the development of new drugs in China for five consecutive years. At present, this part of the investment can bring 6 new drugs and 13 indications to China. After buying the shire in 2019, another special fund was set up to support 11 new drugs and 12 indications to accelerate development in China and catch up with the world.

In recent years, China has launched a series of positive policies that have enabled China to become a promoter from the global drug development participants. Wang Chao, for example, approved Enleri's multiple myeloma drug in China in 2018, only 2.5 years later than the United States. "The drug is the first drug approved by China's extensibility test: China will first be included in the global clinical trials, but since the time of global patient entry can not fully meet the requirements of Chinese patients, we have continued the entry time in China to meet the number of patients required for registration in China, and accelerated the approval of listing in China. The overall survival data in China also helped them get approval in the European Union.