2023 Senior Management Personnel Changes of Multinational Pharmaceutical Companies in China, what's behind it? - IV

In the midst of vaccine-related challenges, Pfizer made significant changes to its Hospital Emergency Business Unit at the end of August. The unit was divided into two business lines: Basic Products and Innovative Products, leading to corresponding management adjustments. Previously, Pfizer's Hospital Emergency Business Unit operated on a regional basis with each region handling full product portfolios. With the split, the Basic Products business line focuses on mature products involved or expected to be involved in volume-based procurement, while the Innovative Products business line includes new products like Bosulif and Sutent.

Roche Pharmaceuticals also underwent a business division split on August 31. The existing Medical Science teams in the fields of Anti-infection, Neurology, and Rare Diseases were separated into two departments: Neurology and Rare Diseases, and Respiratory and Anti-infective Treatments, accompanied by changes in the management team.

An employee from a multinational pharmaceutical company believes that these redefined business lines aim to achieve greater precision and focus in specific areas.

AstraZeneca China stands out as the "restructuring champion" of the year, having undergone three major divisions and reorganizations. In August, AstraZeneca China announced the formal split of its Respiratory, Gastrointestinal, and Autoimmune Business Unit into two major units: Respiratory Inhalation and Biologics, and Respiratory Nebulization/Digestive/Vaccines and Immunotherapies/Autoimmune Business. Each unit was assigned a dedicated leader.

In 2022, AstraZeneca China's Respiratory, Gastrointestinal, and Autoimmune Business Unit resulted from a previous restructuring that merged the Respiratory and Autoimmune Business Units with the Digestive and Respiratory Nebulization Business Unit. On January 1, 2023, the Digestive Oral Team within this newly formed department, including the Marketing and Sales teams, was transferred to the AstraZeneca China Multi-Channel Business Unit to establish a Digestive Oral Product Line Business Team.

The adjustments did not stop there. According to E Pharma Manager's report, in December, AstraZeneca underwent another departmental reorganization. The Digestive Oral Business Department, which currently falls under the AstraZeneca China Multi-Channel Business Unit, including the Marketing and Sales teams, will be fully transferred back to the AstraZeneca China Respiratory Nebulization, Digestive, Vaccines and Immunotherapies, Autoimmune Business Unit. It will merge with the Digestive Injectable Team to form the Digestive Product Business Department.

Regarding these frequent divisions, AstraZeneca responded in August that "future plans will involve the entry of vaccines and autoimmune business segments into China, enriching the entire business unit."

Some market voices suggest that AstraZeneca's repeated division and reorganization in the respiratory and digestive sectors are due to the significance of these two businesses. The respiratory field, with products like Budesonide Inhalation Suspension as AstraZeneca's flagship product, generates annual sales close to 6 billion RMB. However, it failed to secure a contract in the fifth national drug procurement round. In the digestive field, Esomeprazole Sodium for Injection achieves annual sales exceeding 3 billion RMB. Yet, after being included in the centralized procurement, AstraZeneca's market share contracted.

The pressure to deliver results in the respiratory and digestive sectors, which are considered AstraZeneca's key strengths, led to frequent adjustments and changes in leadership positions.

Related reading: 

2023 Senior Management Personnel Changes of Multinational Pharmaceutical Companies in China, what's behind it? - I (echemi.com)

2023 Senior Management Personnel Changes of Multinational Pharmaceutical Companies in China, what's behind it? - II (echemi.com)

2023 Senior Management Personnel Changes of Multinational Pharmaceutical Companies in China, what's behind it? - III (echemi.com)

2023 Senior Management Personnel Changes of Multinational Pharmaceutical Companies in China, what's behind it? - V (echemi.com)

2023 Senior Management Personnel Changes of Multinational Pharmaceutical Companies in China, what's behind it? - VI (echemi.com)