Intensive Changes Of Senior Executives In Pharmaceutical Enterprises

In the first half of 2020, there will be a sudden increase in the survival pressure of pharmaceutical enterprises in the deep water area.

According to incomplete statistics, in the first half of this year, in the first half of this year, the top management of 68 listed pharmaceutical enterprises with revenue of more than 100 million yuan in 2019 have been adjusted, involving many well-known pharmaceutical enterprises such as China pharmaceutical, Fosun Pharmaceutical, Renfu pharmaceutical, Haizheng pharmaceutical, Harbin Pharmaceutical Co., Ltd., China Resources Shuanghe, etc. Among them, 30 have applied for more than one year. For example, Huahai Pharmaceutical Co., Ltd. announced on July 3 that Zhang Jiaai, vice president of the company, applied for resignation due to personal reasons. According to the financial report of Huahai pharmaceutical in 2019, the pre tax salary of zhangjiaai is 1.8298 million yuan and does not hold shares of the company.

In the first half of this year, at the key point of the performance announcement, senior executives resigned intensively, which made the development of pharmaceutical enterprises become the focus of attention.

In response, Shi lichen, founder of Beijing Dingchen Management Consulting Co., Ltd., said in an interview with 21st century economic reporter that compared with the same period in previous years, pharmaceutical enterprises are under greater pressure due to the epidemic situation this year. "Professional managers tend to leave when their performance is not up to standard. At present, the reform of the pharmaceutical industry has entered a deep-water period. Enterprises need to have enough determination to adjust the organizational structure and talent structure of the company. Only by embracing change can they seize the development opportunities of the industry. "

Pressure on Performance

In the first half of this year, many pharmaceutical enterprises suffered from a drop in performance under the impact of market environment changes and epidemic situation.

A number of pharmaceutical enterprises reported a decline in revenue and profit in the first quarter of 2020. For example, the total business income of humanwell pharmaceutical decreased by 13.08% and the net profit decreased by 20.9%; the total business income of Fosun Pharmaceutical Co., Ltd. increased by - 12.62% and - 18.97% respectively; the main revenue of Hansen pharmaceutical company increased by - 18.48% and the net profit rate increased by - 8.15%.

It is worth noting that Hansen pharmaceutical's annual report in 2019 shows that its operating revenue is 887 million, with a year-on-year growth of - 3.74%, which is the first negative growth in five years. On May 27 this year, Hansen pharmaceutical's share price hit a seven-year low, and Liu Ling'an, a 22 year old director of the company, resigned.

Shi lichen pointed out that there was a direct relationship between the personnel changes and the achievement of the performance goals. "The management thinking mode of pharmaceutical enterprise managers is no longer suitable for the current competitive situation of pharmaceutical enterprises. In the changing period, the decision-making ability of executives and the cognitive ability of market and policy determine the survival of pharmaceutical enterprises to a certain extent. If the company's executives can not break through the original thinking pattern and bring new growth points to the company's performance, it will inevitably lead to their dismal departure. "

The implementation of policies directly affects the business performance of enterprises. In the negotiation of access to medical insurance in 2019, 70 new drugs were included in class B of medical insurance, with an average price drop of 60.7%. Another 27 drugs in the original negotiation were successfully renewed, with an average decrease of 26.4%. At present, the third batch of procurement with volume will start soon. Prior to that, Guangdong Province had completed the first round of centralized purchase of pharmacies. A total of 17 retail pharmacies participated in the first round of pilot projects, with the reported volume of more than 110 million yuan. Several manufacturers supplied pharmacies with 4 + 7 bid winning prices or even lower than the bid winning prices. The average drug price dropped by 61.2%.

With the normalization of centralized purchasing, pharmaceutical enterprises have to comply with the trend of small profits and maintain a low price level in order to maintain market share. In this process, the direct strategy is to reduce the sales cost and change the marketing tactics of medical representatives in the past, which is also easy to cause organizational structure adjustment.

As a matter of fact, with the increasing influence of purchasing with quantity, not only domestic pharmaceutical companies but also international giants are adjusting their structure. For example, Pfizer puqiang has recently taken off the position of chief operating officer, and Zhao Ping, who once worked in Bristol Myers Guibao and led the listing of "O" in China, has transferred to cornerstone pharmaceutical as the general manager of Greater China.

The future remains to be solved

According to the current regulatory policies and the development trend of the pharmaceutical industry, the structure of talent demand in the pharmaceutical industry may change greatly.

The pharmaceutical industry headhunting consultant of shangxianda headhunting company proposed that the demand for pharmaceutical R & D talents will increase significantly in the future. The R & D Contract of China's pharmaceutical companies will expand by 21% in 2020, which reflects the rapid development trend of these companies in R & D and R & D contracts. At the same time, the demand for compound senior management personnel will also increase. The selection of pharmaceutical enterprise personnel will change from focusing on enterprise experience and working experience to comprehensive consideration of industry policy observation and strategic vision. "

This change also reflects the development of the pharmaceutical industry to a more mature direction. According to the China entrepreneur value report (2020) released by Rongzheng consulting, as of May 20, the pharmaceutical and biological industry has become the second largest industry with market value second only to banks. In 2019, the average maximum annual salary of senior executives of A-share listed companies reached 1.4717 million yuan, up 12% compared with the previous year. Among them, Jiangxi surpasses Beijing, Shanghai, Guangzhou and Shenzhen to become the region with the highest average executive salary of listed companies. The top 10 TCM health care enterprises with the highest salary accounted for three places, namely Mindray medical, Tang Chen Beijian and Yaoming Kant.

"What's behind the high turnover is the internal demand of pharmaceutical companies in the current development context," Shi added. Pharmaceutical enterprises need to change the current talent application mode, professional managers should be transformed into professional partners. Its main characteristic is that the partners share the responsibility risk according to the partnership agreement. A professional partner is an individual who starts a business in partnership with an enterprise. The enterprise provides an entrepreneurial platform, resources and shares. The business of a partner is to create value and share interests. "

In the Internet enterprises, Alibaba has the inborn gene of partnership and entrepreneurship; in the retail industry, China Resources Wanjia, Suguo, Yonghui supermarkets and other enterprises also promote the full partnership mechanism among the front-line personnel; in the catering industry, Xibei, Haidilao, etc., they more or less apply the concept of partners to the creation of staff cultural atmosphere; in the logistics industry, such as Debang and Shunfeng, etc In addition, Haier, born in the traditional manufacturing industry, has also launched a small and micro ecosystem with the essence of partnership mechanism.

At present, the main incentive mechanisms of pharmaceutical enterprises include performance incentive and equity incentive, but the incentive object is not clear enough, and the definition of rights and responsibilities for incentive objects is relatively vague. The establishment of a back-to-back partnership is conducive to the formation of a win-win system between professional managers and their own teams.

In addition, the systematic problems existing in pharmaceutical enterprises can not be reversed by the power of professional managers alone. The problems of product structure and management mode must rely on policies for systematic reform.

In the view of Chen Yixin, a headhunter in Xingzhong, with the industry entering a period of deep adjustment, the changes of senior executives undoubtedly reflect that the industry is shifting from high-speed and savage growth to medium speed heavy-quality development. Both executives and decision-makers of pharmaceutical enterprises need to adjust their mentality and develop healthily and stably.

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