1 billion yuan, the golden point for the future success of pharmaceutical companies

Markets and competitions are constantly being upgraded. In the next ten years, annual sales of 1 billion yuan will become the golden point for the success of pharmaceutical companies!

In 2007, in the pharmaceutical marketing industry, Fola came up with the "three battles: defeating the fate of pharmaceutical companies: a battle of billions of dollars, an expansion battle, and a capital battle." "Billion battles" means that the sales volume of a single product exceeds 100 million yuan annually. Today, a large number of companies have successfully achieved a single product billion, of course, at the same time very cruel, is that a considerable number of companies have been eliminated, the industry has been further concentrated, the scale of enterprises in the market has been overall improved. In other words, in the future market competition, companies will inevitably usher in a higher starting line, and the threshold for competition will increase significantly. This is the annual sales of 1 billion yuan.

Liu Yao, deputy general manager of Harbin Pharmaceutical Group Co., Ltd., said that the current common performance of the competition between enterprises and the market is: the entry threshold has been continuously improved, the scale of the company has continued to expand; the pace of enterprise renewal and adjustment is rapid, the development of large enterprises is relatively stable, and the R&D strength is constant. Enhanced, scientific research results have become increasingly significant; the management level has gradually increased, the brand effect has become increasingly obvious; the pace of internationalization has accelerated, and foreign trade export capacity has increased; corporate mergers and acquisitions have been frequent, industrial integration continues to advance; The role of the top 100 companies in transforming and upgrading traditional industries and improving the management level of small and medium-sized enterprises has continued to show, and its contribution to China’s economic development has become increasingly prominent.

In the final analysis, this is the law and phenomenon that I have described in the book “The Opportunity of the Boss and Chinese Enterprises,” which is “the advantages of enrichment, the stronger the stronger ones.” This law and phenomenon has become increasingly prominent in the pharmaceutical industry.

A company with a single product sales of over 100 million may not worry about your food and clothing, but the crisis is pressing you. Because market competition does not advance, you will retreat. If you are still intoxicated with past performances, it will not be long before you have fallen in front of a large number of billions of billions of opponents. Being a disadvantaged company will surely be marginalized or even bankrupted or merged by Others. Please forget the success of the past, speed up the pace, running to join the one billion club!

The market is highly fragmented and the enterprises are too small. The huge market for concentrated promotion is decentralized and concentrated and is the law of economic development. At present, China's pharmaceutical industry is large but not strong. There are more than 5,000 pharmaceutical companies in China, and none have entered the world's top 50 pharmaceutical companies. Some people may take the original patented drug to talk about it, but even in the generic drug market, Chinese companies have huge gaps from giant generics such as TEVA and Sandoz. Please see the contrast between domestic and foreign industries.

The first is that the industry is highly fragmented. According to data released by the global pharmaceutical news agency “Scrip” in 2011, the top 100 pharmaceutical companies in the world rankings show that the pharmaceutical companies that rank in the top 100 rank in the high-density area of ​​the industry’s income, including 18 companies’ sales. A total of 460 billion US dollars, equivalent to 71% of the top 100 pharmaceutical company sales. The sales revenue of the top 100 companies in China’s sales revenue accounted for only 47.3% of the total sales revenue of the pharmaceutical industry.

Then the size of the company is too small. The sales of more than 5,000 pharmaceutical companies in China add up to less than US$40 billion. While pharmaceutical sales worldwide are more than US$648 billion, sales of a Pfizer company exceed the total sales of all pharmaceutical companies in China. Therefore, the concentration of China's pharmaceutical market is too low, and it is precisely because of this that the space for concentrated promotion is very large.

The Chinese market is not only huge, but also in continuous escalation, providing enterprises with more opportunities for development and growth. In China, it is a huge market, but it is also a huge and incremental market. In the incremental market, China Pharmaceutical companies have more opportunities for development and growth.

China's 2012 is equivalent to the United States in the early 1970s. In the 46 years from 1960 to 2006, the United States’ spending on health care increased by a full 77 times, while the US’s GDP for the same period only increased by 25 times. China is replicating the era of American pharmaceutical gold.

China now has similar economic conditions to that of the United States: the per capita GDP breaks the $5,000 consumption upgrade; the demographic dividend and the arrival of an aging society; the implementation of the universal health insurance and "Healthy China 2020" strategy. The increase brought about by the government is huge. Among them, 240 million people are newly added to medical insurance for urban residents, which is an increase of nearly 10 billion yuan per capita of 40 yuan; and there are about 720 million new rural cooperatives. At an average of 50 yuan per capita (40 yuan for the government + 10 yuan for the individual worker), the increase in this area is about 36 billion yuan; the medical insurance for major workers in migrant workers is about 70 million people, which is based on 200 yuan per employee. It will bring in 14 billion increments, and the overall total new medical reform will bring at least 60 billion yuan, which is simply a gold mine.

According to IMS Health Inc., an internationally renowned medical and health consulting company, the global pharmaceutical market will grow by 5-7% in 2011 with a total size of 880 billion U.S. dollars, of which China is expected to achieve 25-27% growth, reaching US$50 billion, becoming the The third largest pharmaceutical market in the world after Japan.

With the orderly advancement of new medical reforms and the gradual formation of an aging society, the pharmaceutical market in China will maintain rapid growth in the next decade. It is expected that the total output value of China's pharmaceutical industry will exceed 4 trillion yuan in 2019, becoming the second largest pharmaceutical market in the world. .

Compared with the acceleration of the pharmaceutical market, has your company's operating scale increased synchronously with operating income? Are you worthy of this era?

Foreign-funded enterprises have aggressively entered the Chinese pharmaceutical market. Local companies should have more positive actions as a large population. The Chinese pharmaceutical market is developing rapidly and has great potential. It has witnessed foreign-funded enterprises and foreign investors, and foreign-funded enterprises have strong Innovative drugs, brand power, and powerful strength have made a big attack on the market for subscribing, while foreign investors have used mergers and acquisitions as the main method to gain market dominance and quickly entered the Chinese pharmaceutical market.

Is it active or passive? It is obviously more advantageous to choose the former. Chinese companies can't always stay on the blame for innovation, technology, financial strength, and brand marketing. Action is more important than anything else. First start with your own strengths and differences!

Long Yongtu believes that the breakthrough of the Chinese pharmaceutical industry should choose traditional Chinese medicine. “The output value of Chinese medicine in the world is currently about US$13 billion, Japan accounts for 80%, South Korea accounts for 10%, and China only accounts for 3%.” Long Yongtu said, “If we don’t even have a large share of traditional Chinese medicine, we will As a result of ancestors, modernization and internationalization of traditional Chinese medicine must be done at present.” In fact, real actions will have real gains. The modernization of Chinese medicine benchmarking company Tasly Group through a series of modern complex Danshen Dripping Pills The development of traditional Chinese medicine has made itself the first Chinese medicine company to enter the US market.

In this issue of “Impact,” we have explored how the pharmaceutical industry faces the future, crosses the golden points of success or failure, and joins 1 billion clubs, through over 1 billion companies, over 1 billion single products, and 1 billion over the category. Strategies and methods to communicate with colleagues in the pharmaceutical industry to jointly promote and promote the upgrading of China's pharmaceutical industry and the growth and development of Chinese pharmaceutical companies.