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    Home > Chemial News > Pharma News > Sinopharm and Gilead announce cooperation

    Sinopharm and Gilead announce cooperation

    Echemi 2020-09-14

    The powerful combination of the two will promote the further coverage of drugs across the country and at the same time promote the control of the terminal by commercial enterprises.


    Sinopharm and Gilead announce cooperation

    On the evening of September 9, Sinopharm announced through official channels that it signed a strategic cooperation agreement with Gilead Sciences in Shanghai.

    It is understood that both parties will make full use of their respective advantages in pharmaceutical innovation, market development, channel and retail management to comprehensively improve the availability of innovative drugs for chronic hepatitis B among Chinese patients.

    Luo Yongqing, Global Vice President of Gilead Sciences and General Manager of China Region, said: Since starting its commercial operations in China in 2017, Gilead has rapidly introduced 8 global innovative drugs, and continued to promote drug development through medical insurance access and multi-party cooperation. Accessibility. With the help of Sinopharm's grassroots team and network coverage advantages, it can help more patients in need to improve their treatment.

    According to data, in 2018, Gilead Sciences’ new drug for chronic hepatitis B (TAF/Propofol tenofovir fumarate) was officially launched in China. This is the first domestic approved drug for chronic hepatitis B in five years. New oral antiviral drugs for hepatitis B. In 2019, Gilead Sciences’ TAF/Tenofovir fumarate tablets were included in the new version of the National Medical Insurance List through national medical insurance negotiations.

    According to the agreement, Sinopharm will rely on its comprehensive network layout, strong channel management capabilities, and professional marketing team and services to further increase the availability of Wellide’s medications in the broad areas of the primary market and help more chronic hepatitis B patients. Quality of life, return to normal life.

    High hopes for new products

    From the perspective of the international market, the global antiviral drug market in 2019 was about 56.4 billion U.S. dollars, with anti-hepatitis viral drugs and anti-HIV drugs accounting for 39% and 36%, respectively. In the domestic market, domestic antiviral drugs are mainly indicated for hepatitis B, and entecavir stands out. However, with the impact of price reduction policies such as volume purchases, tenofovir and propofol tenofovir are expected to succeed in growth. This may become a new profit growth point for Gilead in the future.

    Data from research institutions show that currently domestic anti-HBV NAs include entecavir (ETV), tenofovir disoproxil fumarate (TDF), propofol fumarate (TAF), and adefovir disoproxil (ADV). 6 drugs including Bivudine (LdT) and Lamivudine (LAM).

    Due to the impact of high-volume purchases, the anti-hepatitis B virus drug market has shown an overall downward trend, especially the sharp price reduction of Entecavir, which occupies an absolute position, and it is inevitable that the market will shrink. Market data shows that the sales of entecavir in 2018 fell by 8.56%, but its sales volume increased by 9.03%, which is enough to prove the market impact of the price cut on the total sales of entecavir.

    Tenofovir has also entered the national centralized procurement, and the market size of tenofovir has shrunk by about 30% after mass procurement.

    In addition to the impact of volume purchases, as the problem of lamivudine resistance has become increasingly prominent, although the resistance rate of adefovir dipivoxil is relatively low, its antiviral effect is weak. Telbivudine is effective in resistance and antiviral There is no obvious advantage in terms of function, and the performance of the interferon market is declining year by year.

    Therefore, the future increase in market size will depend on the increased volume of new varieties. Among them, Gilead China approved tenofovir (Viride), as an innovative, targeted, tenofovir prodrug, and tenofovir fumarate. Compared with Viread (Viread, TDF) 300mg, it only needs less than 1/10 of the dose to obtain similar antiviral effects. The drug has less impact on bone density and kidneys. Because of its safety and effectiveness, Viread has become the No. A new and updated variety that replaces Norfovir has been placed high expectations by the market, and at the same time it is considered by the industry to have the hope of succeeding Entecavir as the new hepatitis B drug king.

    It is understood that Gilead made its fortune by researching and developing commercial antiviral drugs. The company mainly focuses on antiviral drugs used to treat AIDS, hepatitis B, hepatitis C and influenza. In the past few decades, Gilead Sciences has successively marketed many anti-HIV and HCV drugs. Even the antiviral drug Tamiflu is also from Gilead. Since this year, Gilead has become famous for its star drug Remdesivir.

    However, due to the epidemic, Gilead’s revenue in the most recent quarter was still affected, and the net profit of ordinary shareholders fell by double digits. On July 30, Gilead Sciences announced its financial report. The announcement showed that the company’s 2020 fiscal year interim report attributable to common shareholders of the parent company’s net profit was USD 1.788 billion, a year-on-year decrease of 146.38%; operating income was USD 10.69 billion, a year-on-year decrease of 2.51%. . 

    Perhaps the strategic cooperation with the pharmaceutical commercial giant Sinopharm Holdings, with the help of Sinopharm’s nationwide sales terminals, can help propofol tenofovir (Wilide) quickly reach the sales terminals, promote it to the whole country, achieve high volume, and also obtain the epidemic Under the new performance growth point.

    Another strong alliance

    To a certain extent, this is another strong alliance between commercial companies and industrial companies. As the leading company of pharmaceutical commercial companies, Sinopharm Group has a large enough performance and volume.

    On March 29, Sinopharm Holdings Co., Ltd. (hereinafter referred to as "Sinopharm Holdings") announced its 2019 annual report.

    The annual report shows that during the reporting period, Sinopharm's revenue exceeded 420 billion yuan. This is mainly due to the growth of Sinopharm's pharmaceutical distribution business, pharmaceutical retail business and medical device business income, and the growth of Sinopharm's income has exceeded the average level of my country's pharmaceutical market development.

    In the past two years, regulatory policies such as centralized procurement and the two-invoice system have had a profound impact on the pharmaceutical branch school industry. Judging from the implementation results of the first round of centralized drug procurement, the group has obtained distribution rights in all 11 pilot cities, and each city has an exclusive distribution right for products. The advantages of the distribution network have been further reflected, promoting a significant increase in market share and distribution volume.

    In addition, the company further expanded its leading advantage in the pharmaceutical distribution network to enhance its core regional influence. Relying on the integrated pharmaceutical supply chain and advanced supply chain management model, we will further promote the sinking of the distribution network and strengthen the coverage and service capabilities of medical terminals such as secondary and tertiary hospitals, private hospitals, community medical care, and township health centers. .

    It can be seen that Sinopharm’s advantage lies in the coverage of channels and terminals. Under this fixed model, industrial enterprises provide varieties and commercial enterprises promote products. After all, the advantages of commercial enterprises are in the channels. They have a nationwide terminal network, as well as supporting transport vehicles and cold chain vehicles. Ultimately, the combination of the two will promote further product coverage across the country, and will also promote the control of the terminal by commercial enterprises.

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