Innovative drug commercialization, how to grab the stock, seek incremental? 2024CHDC-Conference Glimpse

At present, the supply of innovative drugs in China is becoming more and more abundant, the competition is becoming more and more fierce, the product life cycle is shortened, and the battle of channels has become the "decisive game" for the commercialization of innovative drugs ". On the one hand, "difficulty in entering the hospital" has become a commonplace problem. On the other hand, the rapid growth of retail pharmacy channels outside the hospital has brought a way to break the situation for the commercialization of innovative drugs.
Challenges and opportunities coexist, pharmaceutical companies are in it, how to seize the opportunity of the hospital market? And how to build a new growth point in the market outside the hospital?
In response to these problems, at the "2024 · CHDC China Medical Decision-makers Summit and the 4th Medical Rubik's Cube Open Day" hosted by Medical Rubik's Cube from September 24 to 25, more than ten guestsChange: new cycle of industry transformation, new path of commercial development"The sub-venues expressed their opinions and launched wonderful exchanges and discussions on the new characteristics, new directions, and new strategies of the current pharmaceutical industry.
Chen Jun, Chief Commercial Officer of Weisheng Pharmaceutical, first gave an opening report on "Commercialization of Innovative Drugs from Phenomenal Success Cases. chen jun said,The formula for the success of the commercialization of innovative drugs is "talent (large market potential, strong pricing ability, good products) and hard work (proper promotion)".

Chen Jun | Chief Commercial Officer of Weisheng Pharmaceutical

Chen Jun analyzed the reasons why sildenafil citrate, semaglutide, HPV vaccine and solfosbuvir can become "explosive drugs". The dismantling is as follows: 1) strong product strength can detonate demand; 2) Solving the payment problem can effectively release demand; 3) Good price determines the final sales scale; 4) The dissemination of consumer products can greatly change the speed of product release.
Dong Hao, Deputy General Manager of China Resources Pharmaceutical Business Group, analyzed the actual meaning of the "new cycle of commercialization" and the marketing strategies from the perspective of the head pharmaceutical distribution enterprises.

Dong Hao | Deputy General Manager of China Resources Pharmaceutical Business Group

Dong Hao proposed that China's pharmaceutical industry has experienced a product shortage dividend period, marketing dividend period, medical reform policy dividend period, the current entry into a new cycle of product innovation as the core. This has given rise to new formats: on the one hand, "patient-centered" and "meeting unmet clinical needs" have become the core strategic objectives of the head companies, and on the other hand,The shortening of product life cycle makes "simultaneous listing", "omni-channel all-ecological marketing" and "expansion and sinking" become the inevitable strategic choice of enterprises.To deal with today's innovative drug market, it is necessary to "grab share in the stock and seek growth in the increment". To do this, it is necessary to change the original thinking mode of taking acquisition of resources as the core and pursuing scale growth, and take the end as the beginning, "optimize the supply chain, open up the value chain, and create an ecological chain".
In a roundtable discussion hosted by Mi Fang, China Research Director of RTW Funds, the guests shared their observations and feelings on the front line of commercialization of innovative drugs with the theme of "How to improve commercialization efficiency after the launch of innovative drugs. The guests agreed that the basis for the successful commercialization of an innovative drug is to meet unmet clinical needs. On this basis, the Chief Commercial Officer of Fuhong Hanlin believes that the smooth and efficient cross-departmental collaboration of the internal team of the enterprise can promote the commercialization of innovative drugs to a successful direction. Yan Mingming, chief operating officer of Tongyi Pharmaceuticals, focused on the decisive impact of channels and access on the commercialization of innovative drugs. This leads to a key question:Is the out-of-hospital market an incremental market or a stock market?

Liu Yang, CEO of Dingyang Pharmaceutical, pointed out that in the past five years, the main growth of China's pharmaceutical market has come from online pharmacy channels. He believes that in addition to the "dual channel" and other policies, it is more due to the rise of new media communication channels, which drives the to C channel outside the hospital. It is difficult to achieve a breakthrough in the to B channel inside the hospital. Yu Cheng held a different opinion, believing that prescriptions still came from the hospital, so the growth of the out-of-hospital market did not belong to the so-called "out-of-hospital channel", but only the overflow of the in-hospital market,The core work of commercializing innovative drugs still lies in hospitals,doctors, especially in serious medical fields such as oncology. Si Zhichao added that the decision-making power is in the hands of doctors or patients, deciding whether the corresponding drugs will grow in the in-hospital channel or in the out-of-hospital channel. If patients have more decision-making power, the products will have more consumption attributes, while the growth of the out-of-hospital market will still come from products with more consumption attributes.
Following the heated discussion on the channel issue by the guests, in the second half of the sub-forum, Jin Chunlin, director of the Shanghai Health and Health Development Research Center, first gave a report entitled "Reflections on the National Drug Landing Guarantee Policy. Jin Chunlin responded to the current industry for the "difficult to enter the hospital" discussion, he pointed out that the current situation of negotiating drugs into the hospital is indeed not ideal, and the differences between varieties, in terms of 2023 national talks on new drugs, the largest number of new drugs into the hospital is 3 new crown drugs, non-new crown drugs into the hospital are not more than 200. In order to solve the problem of "difficulty in entering the hospital", the state has introduced policies such as "dual channels", outpatient co-assistance, and the integration of retail pharmacies into outpatient co-ordination in recent years. However, it still needs the cooperation of government departments, medical institutions, social pharmacies and other subjects to form a long-term and stable operating mechanism to truly promote the implementation of national drug talks.

Jin Chunlin | Director, Shanghai Municipal Health and Health Development Research Center

Chen Hao, director of the drug policy and management research center of Tongji Medical College of Huazhong University of science and technology, shared his sharp thinking on "how to treat the channels outside the hospital. Chen Hao pointed out that the health insurance reform has brought historic opportunities for out-of-hospital pharmaceutical retail, and prescription circulation will promote the realization of the vision of pharmaceutical separation. But he also stressed that the current pharmaceutical stock market still relies on medical institutions under the health insurance system,The essence of the out-of-hospital market is "prescription circulation", and the core of the commercialization of innovative drugs still lies in prescriptions.As for the pharmacy, the main body of the out-of-hospital market, there are only two ways in the future, one is a professional pharmacy, which provides professional services and carries innovative drugs from the country, and the other is a large health convenience pharmacy, which is essentially the socialization of outpatient medication brought about by outpatient co-ordination and the cashing of residents' self-medication prescriptions.

Chen Hao | Director, Drug Policy and Management Research Center, Tongji Medical College, Huazhong University of Science and Technology

Finally, in the "Trends and Challenges of Prescription Drug Omni-Channel" roundtable hosted by Chen Qi, Vice President of Marketing of Ko Ling Medical Technology, four guests shared their actual medical experience. Wang Dong, general manager of Beijing Jianyibao Technology Co., Ltd., shared his understanding of "omni-channel marketing" and the major changes in the industry behind the rise of this concept from his more than 20 years of experience. Chen Siying, the founder of Yuade Health, compared the pharmaceutical markets in Taiwan and the mainland. She believes that in Taiwan, the proportion of patients buying drugs at their own expense in pharmacies is very high, and they rarely get medical insurance dividends in pharmacies. This will also be the future of the mainland. The development trend also means that mainland pharmaceutical companies need to make better omni-channel marketing in a shorter product life cycle. Zhao Hui, head of Hengrui Pharmaceutical's retail business, said that when various departments of an enterprise jointly implement omni-channel marketing strategies, it is inevitable that they will go their own way. In order to achieve coordinated development, the key lies in patient-centered and brand-centered. Targeted layout of corresponding strategies in different channels. Zhang Jingchuan, deputy general manager of Huahong Pharmaceutical, reminded everyone that the most common misunderstanding in omni-channel marketing is channel-led resource allocation and team design, which must be product-led, with the linkage of inside and outside the hospital, online and offline, media pharmacies, etc., to generate increments in various channels.

In the first half of 2024, 16 companies in the 18A and CRE have achieved profitability, 8 of which rely on product sales, demonstrating the valuable resilience of innovative drugs in the changing industry. Pharmaceutical Rubik's Cube will continue to pay attention to the commercialization trend of the pharmaceutical industry, and is committed to building a commercial exchange platform to jointly promote the commercialization of China's innovative drugs, and help China's pharmaceutical industry explore new paths and enter a new cycle.