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Home > News > Pharma News > The pharmaceutical industry will undergo four major changes

The pharmaceutical industry will undergo four major changes

ECHEMI 2020-07-29

In recent years, with the continuous expansion of volume procurement, it has also brought a major reshuffle to the pharmaceutical industry. In this process, pharmaceutical companies have increasingly realized that if they want to maintain market share, they must follow the trend of small profits and maintain a lower price level. However, it is worth noting that this will also lead to the era of meager profits. Industry insiders believe that in the era of meager profits, the pharmaceutical industry will undergo four major changes.

 
Innovative drugs will become the industry's golden track
 
In the past, domestic pharmaceutical companies relied on generic drugs to live well, resulting in far more generic drugs than innovative drugs. In addition, there are differences in the efficacy of various generic drugs. Which drugs are used in the terminal hospital channels mainly depends on the hospital, and a huge gray chain of benefits has gradually emerged. Over a long period of time, good life-saving low-priced medicines have almost disappeared, and pharmaceutical companies "do not look at the efficacy but look at marketing" and "research and development and focus on sales" have become a common practice.
 
However, with the continuous implementation of centralized pharmaceutical procurement, the consistency evaluation eliminated a large number of companies with poor quality, and the bidding quotation eliminated a group of companies with weak competitiveness, thus realizing the survival of the fittest and a virtuous circle of pharmaceutical companies. At present, with the country's resolute attitude to encourage innovation and the rapid development of the global innovative drug industry, the industry predicts that the investment and financing of domestic innovative drugs in 2020 will still increase compared to 2019, and it is expected that the investment and financing for the whole year of 2020 will be 20-21 billion. RMB. In general, the field of innovative drugs will return to the conventional development path and become a segmented field that operates stably.



Digital marketing becomes the general trend
 
In the past, for pharmaceutical companies that used gold sales as their main marketing method, rebates were equal to the source of all sales, so there was no need to establish a marketing system. However, with the heavy pressure of the two-invoice system with business reforms, volume purchases, the state's crackdown on commercial bribery, and financial review and supervision, sales with gold have high risks and high costs, and can no longer be the main marketing model of enterprises. There is an urgent need for a lower-cost compliant academic marketing model. Therefore, the focus of the digital marketing industry. In addition, with the detonation of the epidemic, companies were forced to adopt a "no-face" marketing approach in the first half of this year, and continued and greatly promoted the company's attempts and construction of digital marketing and multi-channel marketing systems.
 
Under the superposition of dual factors, transformational digital marketing has become a rigid need for corporate transformation. Insiders said that the use of digital marketing can not only meet the marketing needs of pharmaceutical companies, but also reduce the costs of pharmaceutical companies by at least 70%. In this context, only by starting to build a low-cost and high-efficiency compliant academic marketing system as soon as possible can each pharmaceutical company be prepared for a rainy day and be prepared to resist industry risks.



Medical equipment may usher in national procurement

Medical devices and drugs are listed as the two pillar industries of the industry. Following the pace of mass procurement of drugs, mass procurement of medical devices has also begun to sound the clarion call. At present, the first focus of medical equipment procurement is the high-value consumables that are in the forefront of investment, such as heart stents and artificial joints. The industry believes that these products are characterized by high technical level, high profit margin, broad market, and more room for centralized procurement and price reduction. According to the data, up to now, the procurement plans for high-value consumables in Anhui, Jiangsu, Shanxi, Shandong, Liaoning, Gansu, Hunan, Yunnan, Chongqing, Hainan and other provinces and cities have been implemented. Not only that, as the governance of high-value consumables continues to deepen, provincial alliances and cross-regional alliances are also continuing to advance.
 
It is worth noting that some time ago, there was a speech document made by the leaders of the National Medical Insurance Administration on the deepening of the medical security system reform training class, which clearly stated that the country will introduce reform opinions on the recruitment of high-value medical consumables in due course this year. Start specific recruitment work. This means that the medical device industry will also undergo a major reshuffle like the pharmaceutical industry.

 
Increased personnel flow in pharmaceutical companies

In fact, since 2020, the flow of personnel among major pharmaceutical companies has really been one after another. A large number of well-known pharmaceutical companies including Hengrui Pharmaceuticals, Fosun Pharmaceuticals, Modern Pharmaceuticals, Qianjin Pharmaceuticals, Sunward Pharmaceuticals, and Jingjing Pharmaceuticals have announced the resignation or replacement of senior executives.
 
Industry analysts believe that this has a lot to do with the development of the industry and changes in the market environment. At present, with the upgrading of the pharmaceutical industry, changes in the pharmaceutical landscape are inevitable. Not only the Chinese market, but the global pharmaceutical industry is currently undergoing reconstruction. In the great changes, the traditional business model of pharmaceutical companies can no longer adapt to the new industry ecology, and in order to develop, their marketing methods and management models may need to be adjusted, and the flow of talents is inevitable.
 
In fact, industry experts predicted earlier that personnel changes in 2020 will appear more frequently in the marketing field. Therefore, the resignation of a large number of well-known pharmaceutical company executives and marketing personnel is just the beginning, the flow of industry talents will continue, and the challenges faced by pharmaceutical companies in the future will become more and more severe.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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  • Life Sciences Industry Overview

    The coverage spans the global life sciences industry across pharmaceuticals and food & nutrition, tracking the shift from lowest-cost sourcing to supply continuity, quality, and risk management, along with product trends and the growing edge of differentiated, globally capable players.
    Published in: June.2026

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