Merck joins hands to lead the market with governmental relations

Recently, Merck announced its cooperation with Xiansheng Pharmaceutical Group and the two parties will establish a joint venture company. According to the cooperation agreement between the two companies, the two companies will provide joint ventures with selected brands and generic drugs in the cardiovascular disease field. At the same time, the two companies will also actively cooperate to jointly improve the accessibility of Siddliptin for diabetics in China. Sex. Guo Fanli, a research fellow in the pharmaceutical industry at China Investment Advisors, pointed out that Merck chose to establish a joint venture with Xiansheng Pharmaceutical on the one hand because of the agreement between the two parties and on the other because Xiyin Pharmaceutical has accumulated a lot of market channels and government relations. This is the most favored place for foreign-funded enterprises. With these relationships and channels, foreign pharmaceutical companies will be able to enter the domestic market more smoothly, and this cooperation can also use Merck’s brand effect to enhance performance for Synopsys Pharmaceuticals. .

Guo Fanli pointed out that in addition to the cooperation between Merck and Xiansheng Pharmaceutical, in recent years, more and more foreign-funded enterprises tend to establish joint ventures with domestic pharmaceutical companies. For example, in June this year, Pfizer and Hisun also signed a contract. The cooperation agreement established a joint venture company. The speed of cooperation between foreign pharmaceutical companies and domestic pharmaceutical companies has major impacts, among which the most important one is that foreign pharmaceutical companies have taken a fancy to the 850 billion yuan of new medical reforms in China.

In addition, there is another reason that foreign large-scale pharmaceutical manufacturing companies will enter the period of patent drug expiration in the next few years, such as Pfizer’s heavy drug Lipitor will expire in November this year, Novartis In 2012 and 2015, the patents for the best-selling anti-hypertensive drug Diovan and anti-cancer drug Gleevec will be lost. The expiry of proprietary drugs will require these pharmaceutical companies to acquire new companies to smooth performance.

On the other hand, foreign-funded enterprises will encounter some difficulties and obstacles on the way to enter the domestic market, such as difficulties in channels and policy difficulties, etc. The merger and acquisition of domestic drug companies and establishment of joint venture companies can maximally alleviate these difficulties. For example, in a joint venture project between Novartis and Zhejiang Tianyuan, Novartis quickly relied on Zhejiang Tianyuan’s long-established channels and its good relationship with the government to quickly enter the domestic pharmaceutical market.