2018中国医药行业年终盘点英文版_103页_8mb

Summary of McKinsey&Company's China Healthcare Summit 2018

Core Content

The McKinsey&Company report on the China Healthcare Summit 2018 discusses the evolving landscape of the Chinese pharmaceutical industry, focusing on the concept of "Bridges to Innovation" and its implications for the market. The report outlines three potential scenarios for the industry's development: the Broad Bridge, the Narrow Bridge, and the Broken Bridge, each representing different levels of innovation and market dynamics.

Main Views and Key Information

1. The Three Bridges to Innovation

• Broad Bridge: Mature drugs continue to have staying power and growth beyond 2020, with China offering broad rewards for innovation.
• Narrow Bridge: Innovation is rewarded but in a more limited scope, closely aligned with disease priorities.
• Broken Bridge: The window for mature drugs is closing rapidly, with innovation facing strong constraints and the self-pay market becoming the main viable segment.

As of 2018, the report suggests that the industry is progressing on the "narrow bridge," with a shift towards more innovation-driven portfolios.

2. Regulatory and Market Changes

• NMPA Reform: The reform continues at a steady pace, with a focus on accelerating the drug approval process. The number of applications with priority review has increased, and the reform is seen as a positive development.
• GQCE and Reimbursement Reforms: These reforms are exerting pricing pressure on off-patent originator products and are expected to shift the market towards a more developed profile.
• 4+7 Policy: This new tendering policy is pushing MNCs out of the market, which could be detrimental to the Chinese pharmaceutical industry, but the government is expected to make further adjustments.

3. Access and Innovation

• Access Improvements: The number of western drugs added to the National Reimbursement Drug List (NRDL) has increased, with 128 drugs added through direct listing and 36 of 44 national negotiation drugs included.
• Innovation Momentum: The pace of innovation is increasing due to ongoing regulatory reforms. The report highlights the growing importance of innovative products in the market, although reimbursement negotiations may affect their value.

4. Talent and Market Dynamics

• Talent War: There is a growing competition for talent, with key MNC professionals moving to local biotech firms. This trend is expected to continue as the market expands and the innovation ecosystem grows.
• Local Innovation: Emerging local leaders are being developed, with a focus on senior management and on-the-ground sales talents.

5. Digital and Analytics Impact

• Digital Engagement: Digital touchpoints are becoming essential for customer engagement and commercial activities. The report suggests that digital interactions will play a significant role, especially with the use of platforms like WeChat.
• AI and Big Data: There is growing hope for the application of AI and big data, although the transformation is still in its early stages.

6. China Drug Innovation Index (CDII)

• CDII 2018: The third edition of the index provides a fresh assessment of the Chinese biopharma innovation ecosystem, comparing it to the 2015 results.
• Dimensions of Innovation: The index evaluates the innovation ecosystem along five dimensions: policy environment, funding, capability/infrastructure, local innovation output, and integration into global markets.
• Survey Insights: The survey of 109 industry experts shows that the majority are confident in the direction of regulatory reform over the next three years.

Key Questions to Explore

1. Macro Market Evolution: Understanding the long-term trends in the market.
2. Momentum of Innovation Drive: Assessing the pace and direction of innovation.
3. Speed of Market Access Improvement: Evaluating how quickly new drugs can gain access.
4. Impact of Digital and Analytics: Exploring the role of digital tools in the industry.

Outlook and Predictions

• The importance of the China market is expected to remain steady, driven by growing innovative business but offset by pressure on mature products.
• The talent war is expected to intensify as the market expands and the innovation ecosystem booms.
• Digital tools will become a crucial part of customer engagement and commercial activities.
• The regulatory reforms have had a transformative impact, with many positive changes in the drug review and approval process.

Overall, the report emphasizes the shift towards a more innovation-driven and digitalized healthcare market in China, while acknowledging the challenges posed by reimbursement negotiations and regulatory changes.