Drug firms bank on cutting-edge tech for long-term success in nation

One important lesson domestic and foreign pharmaceutical firms in China learned from the nation's fight with the COVID-19 outbreak was that cutting-edge technologies and business models are the key to success, and they are still bullish about market prospects in the country, a recent survey said.

New York-based business advisory firm Deloitte collected and analyzed a total of 104 responses to a survey from China-based pharmaceutical and healthcare sector operators and investors. Nearly two fifths were wholly foreign-owned enterprises, the other two-fifths were domestic private enterprises, and the rest consisted of State-owned enterprises and joint ventures.

Some 76 percent of the pharmaceutical enterprises said that during the epidemic prevention and control period, the biggest challenge they encountered was that market and sales activities could not resume due to several restrictions.

Engagements by healthcare providers (HCPs), medical and drug presentation events as well as simple physical access to hospitals were nearly impossible. The HCPs were less interested in non crisis-related activities.

Andrew Yu, one of the survey's authors and consulting leader with Deloitte China Life Science and Health Care, said many drug firms quickly adjusted their strategies during the period because normal business activities were affected.

To mitigate the short-term impact on business, the highest priority for those surveyed was strengthening collaboration with local governments and hospitals.

Soenke Zornig, vice-president and head of Product Supply China of Bayer Pharmaceuticals, said "to support China in the fight against the virus, ever since Chinese Lunar New Year, Bayer employees－specifically those working at the pharmaceuticals production sites－have been closely working together with all respective partners to ensure the supply of our medicines."

In early February, the company's subsidiary in Pakistan relocated and provided 300,000 pieces of Resochin or chloroquine phosphate, an anti-malarial drug with broad antiviral qualities, to Guangdong province free-of-charge.

Among the 300,000 pieces, the first batch was approved within 24 hours. Inventory accounting and logistics preparation were completed rapidly and the drug arrived in Guangdong as a medical reserve for epidemic prevention and control.

On Feb 19, the National Health Commission issued the sixth edition of the epidemic treatment plan. Chloroquine was referred as a recommended treatment medicine for COVID-19.

State-owned enterprises also stepped up their efforts. Sinopharm, China's largest State-owned healthcare company, beefed up efforts among its over 1,400 subsidiaries by taking advantage of various resources to address urgent issues in a short period of time.

To actively offer assistance in epidemic prevention and control, the company relocated and integrated all resources within its system to guarantee medical supply circulation, drug research and development, drug production and medical treatments.

Sinopharm said employees from its subsidiaries in the local medical systems, especially the 4,200 medical professionals in the six hospitals in Hubei, served people in the frontline throughout the outbreak.

Adopting internet-based technologies proved to be the second most favored choice for pharmaceutical companies in China. Deloitte said 38 percent of respondents said implementing new technologies to sustain client services was a clear focus during this period.

The survey demonstrated that despite the epidemic, pharmaceutical companies were basically optimistic about their business revenue this year and their market prospects.

Up to 20 percent said sales would catch up later to meet the target they set in 2020, while 6 percent indicated their sales should go up given rising medical demand.

"As long as we strengthen our confidence and work hard, it is completely possible to achieve the goals and tasks of this year's production and operations. We will continue to make steady progress in the direction of high-quality development. The epidemic won't change the trend of the company toward growth and expansion," said Sinopharm Chairman Liu Jingzhen.