The Nations of Isaac, Teva Pharmaceuticals headquarters.
CEO Schultz summoned the heads of major laboratories and gathered together for a meeting.
The secretary distributes a copy of the information to all participants.
Schultz's face was clouded, and he said in a deep voice: "Everyone, please take a look at the information in your hands. It is the news sent back by Teva's China branch. Sanqing, the leading pharmaceutical company in the East, has launched China's first Glatide. Ray’s generic.”
Everyone was in an uproar and started talking one after another.
"Sanqing? Is it the Sanqing that develops anti-cancer drugs and ad specific drugs? Is it also going to enter the field of generic drugs?"
"Glatiramer is our flagship product. The patent expired five years ago, which led to a joint campaign by two generic drug giants, Sandoz and Medline. This has caused the company's stock price to plummet and has a great impact on the market. , if another powerful pharmaceutical company from the East is added, it will cause significant damage to the company's sales."
"Damn it, Oriental generic drugs have always been known for being cheap, and they will have a huge impact on our original drugs."
"Why do Sanqing's generic drugs have the same efficacy and quality as our original drugs? This is unscientific."
"It seems that they have invested a lot of research and development efforts in this to achieve such results. This will definitely take away a lot of our market."
“Sanqing wants money and technology, and will be our biggest enemy in the field of generic drugs.”
Glatiramer is a first-line drug developed by Teva to treat multiple sclerosis. It ranks 17th among the best-selling drugs in the world. Its sales have exceeded US$4 billion for five consecutive years, ranking first among multiple sclerosis drugs. It is a blockbuster drug for rare diseases.
The global multiple sclerosis drug market is approximately US$20 billion. And Eagle Country is the largest market for this drug.
Multiple sclerosis is a chronic disease of the central nervous system (brain and spinal cord) that mostly occurs in young adults aged 20-40. The exact cause is unknown, and internationally it is believed to be related to autoimmunity. Clinical manifestations include numbness of the limbs, optic neuritis leading to vision loss or even blindness, and abnormal movement leading to difficulty walking or even paralysis. The malignancy of this disease is comparable to that of nerve tumors.
Schultz scanned the audience with a falcon-like gaze and slowly said: "The only good news is that due to the short time, this generic drug is mainly marketed in China and has not yet received FDA approval to enter the Eagle Country market."
"Everyone, you need to go all out to develop upgraded products. The only long-acting version of glatiramer we have to compete with cheap generic drugs is far from enough."
"There is no doubt that Sanqing's R&D strength is at the top level in the world. Their move into the field of generic drugs will surely cause a bloody storm."
"In the global generic drug market, one thing needs to be understood: the wolf is coming."
"We must make changes and take advantage of the drop in stock prices to conduct global layoffs. My plan is to first lay off 10,000 employees and reduce operating and management expenses. After the stock price increases, we will then acquire new companies with complementary businesses. This will enrich our product line to survive the cutthroat competition.”
The heads of the major laboratories looked serious and nodded one after another.
****
Tianzhu Country, Mengmai Market, Sun Pharmaceutical Headquarters.
Tianzhu is a magical country. The generic drug industry is extremely developed. It not only meets the domestic drug demand, but is also sold overseas, firmly occupying 40% of the generic drug market in Eagle Country.
The original price of medicines is several thousand yuan, but Tianzhu's generic medicines only cost a few hundred yuan. The original price of medicines is several hundred yuan, and Tianzhu's generic medicines can even be sold for a few yuan a piece.
The reason why it is so cheap is that the production cost is low, and the government supports it and ignores medical patents.
The government stands on the moral high ground and says that if medicines are too expensive and people cannot afford them, they will die. Therefore, in order to save people's lives, they allow imitation of foreign patented medicines.
As long as the production process of the generic drug is different from the original version, it will be fine. In other words, if the original version cooks rice and adds water, and it cooks rice and adds soup, it can bypass the production process patent.
Therefore, even if the patented drug is still within the protection period, Tianzhu Pharmaceutical Company can openly infringe and copy it, and Tianzhu Pharmaceutical Company always selects the latest and most effective drugs for imitation, which makes European Eagle Pharmaceutical Company, which invests a lot of research and development costs, hate it. Gritting teeth.
In addition to generic drugs, Tianzhu's medical level is also very high. Many wealthy people in developed countries will choose to go to Tianzhu for medical treatment, such as organ transplantation.
Even global pharmaceutical giants often set up branches in Tianzhu to conduct various clinical trials. After developing new drugs, they will license them to Tianzhu's generic drug companies at low prices as soon as possible.
Because Tianzhu’s clinical costs are very low, requirements are low, and it is convenient to recruit people to test drugs. Even if the other party is damaged by the test drugs, the compensation is very low. In short, this low human rights advantage has made major pharmaceutical companies around the world appreciate Tianzhu’s cheap clinical environment. They all couldn't give up, so they acquiesced to this move, which was regarded as getting what they needed.
Tianzhu is also very sensible. Those generic drugs that infringe patents will not be sold in developed countries. The two parties have reached a tacit understanding with each other.
As a result, Tianzhu's generic drug industry has flourished, and many generic drug giants have emerged.
Sun Pharmaceutical is the leader in Tianzhu's generic drug industry. It is the fifth largest generic drug company in the world and the number one Tianzhu pharmaceutical company in the Eagle Country market, with total annual revenue of approximately US$4 billion.
Although the profits are not as high as those of top pharmaceutical companies such as Pfizer, Bayer, Roche, and Novartis, they can still guarantee a profit rate of 10%.
At this moment, Sanghavi, the president of Sun Pharmaceuticals, was sitting in the office of the headquarters, feeling very bad.
It was a sunny and sunny day outside the window, but a storm was brewing in his heart.
The latest sales reports were placed on the large desk. The more he looked at them, the more angry he became.
There was a knock on the door, and several company executives filed in. Looking at his gloomy face, they suddenly felt cold.
Sanghavi finally couldn't bear it any longer and threw the report in his hand at the people opposite him, roaring loudly.
"Why have the sales of these generic drugs fallen so sharply? I need an explanation!"
The sales director bit the bullet and said: "The main reason is that the sales of two generic drugs, Trelagliptin and Bosentan tablets, have declined seriously. As for the reason, it is because the Oriental pharmaceutical giant Sanqing started to make generic drugs, so we quickly lost to the Chinese market.”
The R&D director picked up the report and read it carefully for a while, his face serious.
"The patent for bosentan tablets has expired. There were no generic drugs in China before. They all bought our generic drugs because the original drug was expensive, 4,000 yuan per box, and we only paid more than 400 per box. But this Sanqing actually made it The price is as high as 300 yuan, which we really can’t compare to.”
"There is also Sakura Country Takeda Pharmaceutical's long-acting hypoglycemic drug troagliptin, which has not applied for a patent in China. This also gives Sanqing an opportunity to take advantage of it. Before, patients went to Sakura Country to purchase the original medicine. A box of 5,000 yuan, our generic drugs only cost 1,000 yuan, but this damn Sanqing actually lowered the price to 600 yuan, which is simply too much."
"There are no patent fees for these drugs, only production costs. It is really unexpected that Sanqing can reduce the price to such a low price. I can't figure out why it sells for such a low price." The R&D director looked confused and puzzled.
In their view, although the price of generic drugs is low, they still have costs and they have to make money. Basically, it is enough to be half cheaper than the original drug. There is really no need to drop it to such a low price. This is unreasonable.
"Moreover, Sanqing's generic drugs are more effective than ours, achieving 100% of the effects of the original drugs, with minimal side effects. The price is so cheap, it's simply outrageous. I can't imagine how they do it."
The more the R&D director watched, the more frightened he became, with a look of disbelief on his face.
Although Tianzhu's generic drug technology is very strong, it cannot 100% restore the efficacy of the original drug.
This technology gap is really big, and the price is not advantageous. He finally understands why he lost the Chinese market.
Bosentan tablets are one of the main drugs for the treatment of the rare disease pulmonary arterial hypertension. They can effectively improve the patient's exercise capacity and reduce clinical deterioration. Like trotagliptin for the treatment of type II diabetes, there are no patent issues. It is a product of Sun Pharmaceuticals The main products are generic drugs, which are also very popular in the Eagle Country market.
Sanghavi thought for a while and gave the order without expression.
"As an innovative pharmaceutical company, Sanqing must have strong R&D capabilities. It is not surprising that generic drugs have such performance, but I heard that they are now focusing on generic drugs for rare diseases and drugs that are not yet on the market in China, so the blow to us is not considered Too big, we have other opportunities.”
"We need to avoid direct confrontation and sell more drugs such as Jisandai, HIV three-in-one, etc. The patents of these drugs have not expired. According to Chinese laws, Sanqing cannot be copied, so it will not affect our sales. "
"As for drugs with expired patents, we will try our best to grab the first imitation, and then immediately promote the listing in Eagle Country. Do you understand?"
Everyone nodded, feeling heavy.
They know in their hearts that Sanqing will definitely not be satisfied with these two generic drugs and will continue to conquer the generic drug market.
In the field of generic drugs, a lone wolf has arrived.
This industry is already highly competitive and has meager profits. As a result, it is bound to experience a round of war and a reshuffle.
So, who will be the first unlucky guy to fall?
I hope it won’t be their Sun Pharmaceutical Company.
