Over 80 Chinese Listed Pharmaceutical Companies Lay Off More Than 10% of Employees in 2023

In 2023, more than 80 listed pharmaceutical companies in China reduced their workforce by over 10%. Among them, the medical device sector, particularly the Microtech group, exhibited the most significant performance, with multiple listed subsidiaries implementing layoff measures. Specifically, Microtech Neuroscience laid off 495 employees, accounting for an 85% reduction in its workforce. Similarly, Microtech Robotics experienced a substantial downsizing, with its employee count dropping from around 1,200 in 2022 to 646 in 2023, nearly halving its staff.

In the innovative drug sector, companies such as Jihe Biotech, Coherent Biopharma, and Dekeyi Pharma also underwent large-scale personnel adjustments, with layoff ratios reaching 61%, 52%, and 49%, respectively. These layoff measures were primarily attributed to slower-than-expected research and development progress and tight cash flow.

On the other hand, despite benefiting from the pandemic windfall, IVD (in vitro diagnostics) companies also faced the challenge of declining performance. For instance, Da An Gene and Yiruibio reduced their workforce by 1,612 and 246 employees, respectively.

However, it is worth noting that some new drug development companies have achieved growth amidst the adversity. Enterprises like Luye Pharma, Codifei, and Yahong Pharma have experienced growth, primarily driven by the launch or pending launch of new products. Additionally, companies such as Aibomedical and Haijia Medical are in a phase of rapid expansion.

Overall, the pharmaceutical industry in 2023 has shown a trend of struggling to seek a way out. Looking ahead, pharmaceutical companies will likely focus more on operational efficiency and financial balance to navigate market volatility and achieve steady development.