This month, in terms of local pharmaceutical companies, China National Pharmaceutical Group under the General Technology Group, Luye Pharma, and RichSmart Healthcare; multinational pharmaceutical companies such as Pfizer, Eli Lilly, Roche, Sanofi, and UCB all had significant personnel adjustments.
Writing | Slowly
Editor | Dunhe
When the industry believed that the biggest personnel change in May this year was the consecutive "changing of the guard" at GSK and Novartis China, close to the end of the month, two incidents shifted the industry's focus from multinational pharmaceutical companies to domestic large pharmaceutical factories.
First, on May 28,CSPC Announces New Board Members, with Cai Xin's Name Appearing on the Board List for the First Time.Cai Xin, 33, is the son of Cai Dongchen, Chairman of the Board of CSPC. He joined CSPC in 2022 and currently serves as the Executive President of CSPC and President of the Marketing Decision Center, mainly responsible for sales operations. The announcement shows that before joining CSPC, Cai Xin worked as an investment analyst at CDH Investments, a globally renowned investment institution.As is known to all, the succession of the new generation in local pharmaceutical enterprises has always been a topic of concern in the industry. In fact, it is also a major issue that all private enterprises in China need to face and resolve at this stage. Hengrui, Qilu, CSPC, and China Biologic Products are the "four generals" of China's local pharmaceutical enterprises. Qilu and China Biologic Products have already completed the handover to the new generation, which has made the industry pay special attention to the progress of Hengrui and CSPC in this aspect.Previously, Cai Dongchen's other son, Cai Lei, had officially announced his entry into the company's management. Now, with Cai Xin appearing for the first time on the board of directors list of CSPC, it signifies that CSPC has brought its new generation of successors to the forefront.Another incident occurred at Yunnan Baiyao.On May 26, Chen Fashu, once the richest man in Fujian and a prominent figure in the business world for many years, along with his son Chen Yanhui, announced their resignation from the board of directors of Yunnan Baiyao, reigniting public attention on Yunnan Baiyao.As early as the beginning of this month, Yunnan Baiyao had attracted significant attention due to internal issues. According to media reports, at the start of this year, former chairman Wang Minghui and four other former senior executives were taken away for investigation by the Commission for Discipline Inspection and Supervisory authorities over the same matter. This situation remains unresolved, and as the month neared its end, further changes occurred at Yunnan Baiyao, causing both the industrial and investment communities to worry about the future of this century-old brand.Besides, this month, in terms of local pharmaceutical companies, China National Pharmaceutical Group under the General Technology Group, Luye Pharma, and RichSmart Pharma; multinational pharmaceutical companies such as Pfizer, Eli Lilly, Roche, Sanofi, and UCB all had significant personnel adjustments."Insane" Adjustments in China's Local Pharmaceutical Companies
This month,China Pharmaceutical Officially Announced: Due to Work Adjustments, Chairman Li Yadong and Vice Chairman Wang Xiao of China Pharmaceutical Have ResignedAnd will no longer hold any position in the company, a move that has drawn widespread attention in the industry.
During Li Yadong's tenure as chairman, although China Pharma's revenue grew, the net profit growth rate fluctuated significantly, especially showing weakness in recent years.Specifically, from 2021 to 2023, the revenue of China Pharmaceutical was 36.234 billion yuan, 37.593 billion yuan, and 38.824 billion yuan respectively, with year-on-year growth rates of -7.83%, 3.75%, and 3.28%. In terms of net profit, although the absolute value increased year by year, reaching 647 million yuan, 735 million yuan, and 1.048 billion yuan respectively, the year-on-year growth rate showed significant fluctuations, at -50.63%, 13.68%, and 42.47% respectively.More critically, the Q1 2024 report shows that the company's revenue fell 29.97% year-on-year to 8.775 billion yuan, with net profit also plummeting 45.83% to 146 million yuan.Against the backdrop of such performance, frequent changes in senior management seem to have become one of the means for companies to try to reverse the situation and seek new growth points. In fact, not counting the frequent changes in positions such as general manager, deputy general manager, and supervisor, there have been multiple chairmen of pharmaceutical companies in China who left their posts after serving less than a year or just over a year, such as Jiang Xin and Tan Xinghui.From Glory to Gloom:睿智医药 (Richwise Medicine) Back in Pharma Circle "Hot Search" Due to Another Leadership Change. On May 6, Richwise Medicine announced the dismissal of Vice President 许吕 (Lü Xu), a decision made just half a month after the release of the company’s annual report. What makes this personnel change unusual is that the pharmacodynamics and pharmacokinetics business led by Lü Xu was the only segment of Richwise Medicine that saw growth in 2023.Due to various long-standing issues, over the past year, RW Pharm has experienced the departure of two CEOs and the chairman.While outsiders lament, the industry is more concerned about whether Wisedom (Ruizhi) can be saved. What exactly will its future development strategy be? In response to this change, how Wisedom Pharmaceutical stabilizes its management team and ensures continuous business growth are also key issues that need to be addressed moving forward.In addition to the above-mentioned personnel changes, Liang Yi, who left Zai Lab at the end of April, finally announced his new position in mid-May, serving as the Chief Operating Officer of Luye Pharma. He will oversee group strategy development, product line management, market planning, and new product launch strategies, while also supporting the development of market sales operations in China and internationally.In addition, Feng Honggang, who retired as president of Simcere Pharmaceutical, returned to the industry after being out of the public eye for four or five years. In the announcement of five senior executive appointments by CBC Group on May 11, Feng Honggang was appointed as Managing Director of the Post-Investment Operations Management Team at CBC Group.Other notable personnel changes this month include: High Chance Bio appoints Meng Xiaofeng as co-president, who will be fully responsible for the company's production, quality, registration, sales and other operational management tasks; Guo Ting, vice president of China Resources Sanjiu, resigned due to work changes, and two vice general managers of Unnamed Medicine also resigned.There is no doubt that behind the increasingly rapid changes in management, the core competitiveness of the industry is undergoing significant changes.In response to the current complex situation, the industry's requirements for talent capabilities have become more comprehensive than before, with greater emphasis on the alignment between personnel capabilities and the stage of the enterprise.Multinational pharmaceutical companies in China accelerate transformation
A careful observation of the dynamics and frequency of changes in multinational pharmaceutical companies reveals that they are undergoing unprecedented transformations. These changes have even directly affected adjustments in senior management, including the heads of their China operations.
This month, two major personnel changes at Novartis have given the industry quite a "shock."Amidst a chorus of astonishment,Novartis China Officially Announces Leadership Change,Former China head Zhang Ying has been promoted to Chief Commercial Officer (CCO) of Novartis International Business, leading the Novartis Commercial Launch Strategy (CLS) team and based in Basel. Current Novartis Japan President Leo Lee has been appointed as the China head, while Keizo Miyazawa will serve as the interim Japan head during the transition period, overseeing Japan operations.This change has indeed surprised many people in the industry, with some even exclaiming, "Two weeks ago, no one would have expected it."Since joining Novartis in 2011, Zhang Ying has held several key positions, including Chief Operating Officer of Novartis Pharmaceuticals (China), Head and President of Novartis Pharmaceuticals Poland. Since 2017, Zhang Ying has been leading Novartis’ pharmaceutical business in China. Against the backdrop of Novartis' global restructuring, she was appointed as President and Managing Director of Innovative Medicines China on June 1, 2022. In September 2023, following the departure of Novartis Group China President Bertrand Bodson, Zhang Ying once again assumed this critical role. With Zhang Ying’s promotion, another global executive from a multinational pharmaceutical company nurtured in the Chinese market has emerged.Another noteworthy change on the Novartis side is,It was mentioned for the first time that a new team for radioligand therapy will begin to be formed on June 1, 2024.Wang Ziwen, currently the head of China New Product Planning in the International Business Department, will be appointed as the head of the China Radioligand Therapy Team in the International Business Department.In fact, Novartis has been continuously expanding its presence in the field of nuclear medicine for many years and has achieved a leading position. Since 2016, among the multiple radioligand conjugates (RDCs) approved by the FDA, two therapeutic RDCs have been developed by Novartis.In addition, Novartis' expansion strategy in the field of nuclear medicine has also been quite eye-catching, with a series of acquisitions continuously being made. According to incomplete statistics by E Pharma Manager, in the past five years, Novartis' transaction layout in the nuclear medicine sector has approached nearly 10 billion US dollars. For example, in 2017, Novartis spent 3.9 billion US dollars to acquire Advanced Accelerator Applications; then in 2018, it acquired Endocyte for 2.1 billion US dollars, thereby obtaining important product rights including Pluvicto; later, it also acquired Maria; and just this month, it acquired Mariana Oncology for approximately 1.8 billion US dollars...At the same time, Novartis is also accelerating the introduction of innovative radiopharmaceutical therapies into China. In December 2023, Novartis announced plans to invest in the establishment of a brand-new radiopharmaceutical production base in China, with a total investment expected to exceed 600 million yuan. The project is scheduled to commence production by the end of 2026.Novartis officially kicks off radioligand commercialization by specially establishing a brand-new radioligand therapy team in China.GSK's "leadership change" in China was announced a few days earlier than Novartis. Qi Xin, GSK China's first locally-appointed General Manager, has been promoted to Vice President of GSK Greater China and Intercontinental Region (GCI) and Head of Vaccines Business. She will be succeeded by the current GSK Vice President and General Manager of Taiwan, Sherman Yu.Subsequently, due to the retirement of Xu Qing, GSK's Head of Market Excellence, Wang Dong from Sanofi took over this position and reports to Tang Ying, Head of China Commercial Excellence.From a management perspective, the significant personnel changes in multinational pharmaceutical companies' China operations are not isolated incidents.But it is an inevitable choice under the global geopolitical landscape, financial market volatility, and shared regional market strategies. The core of these adjustments lies in strengthening headquarters' control over the Chinese market to address evolving industry risks and uncertainties.In such a market with great potential and challenges, no multinational pharmaceutical company is willing to give up easily. Instead, they are all making adaptive decisions based on their own development strategies and risk tolerance.Global Pharmaceutical Industry Enters a New Cycle of Personnel Changes
First, Pfizer officially announced that Wall Street analyst Andrew Baum will join the company as its Chief Strategy and Innovation Officer. This move is considered by the industry to be part of Pfizer's "self-rescue strategy."
As is known to all, Pfizer's performance has been severely impacted by the decline in demand for COVID-19 products, with its net profit in 2023 dropping by more than 90%.Earlier, Pfizer announced a "cost adjustment plan" of up to $4 billion and laid off hundreds of employees accordingly. This month, Pfizer launched a new "sales cost reduction plan," aiming to save approximately $1.5 billion by the end of 2027, with plans to complete layoffs by 2025, further highlighting the difficulties and challenges it faces.It is reported that after Andrew Baum takes office, he will be responsible for advancing Pfizer's long-term corporate strategy planning to maximize value for patients and shareholders. He will also oversee business development (BD) efforts to strengthen Pfizer's partnerships with biotech companies, as well as evaluate the commercial value of the R&D pipeline.In addition, Andrew Baum will serve as the chairman of Pfizer's Portfolio Management Team, the company’s senior-most governing body responsible for pipeline portfolio management and capital deployment. This team ensures that Pfizer advances the vaccines and medicines most likely to address unmet patient needs while delivering strong commercial returns and increasing access to medicines.Also restructuring its leadership team is UCB. Its purpose is clear: to achieve growth and innovation for the next decade.The leadership team adjustments involve Fiona du Monceau joining the Executive Committee as Executive Vice President of Patient Evidence. She will be responsible for the late-stage clinical development of UCB's new molecules, brand positioning and strategy, medical affairs, as well as communication and engagement with key external stakeholders such as government regulatory agencies, patient organizations, or government officials.Emmanuel Caeymaex, current Executive Vice President and Head of Immunology and the U.S., will assume the role of Chief Commercial Officer, leading all commercial activities of the group; Executive Vice President and Chief Medical Officer Iris Loew-Friedrich will retire from UCB later in 2024; Chief Scientific Officer Dhavalkumar Patel will retire from UCB at the end of June 2024. Alistair Henry, current Head of Research for the UK, will take over as Chief Scientific Officer and join the Executive Committee.Recently, Sanofi also had a senior executive leave.As early as April, Sanofi announced that it would carry out a "full product line reprioritization project," involving staff reductions and the cancellation of multiple oncology research projects to focus resources on key pipelines.A month later, Sanofi's Chief Scientific Officer and Research Director Frank Nestle officially announced his departure from the company. This is considered the highest-level executive departure since Sanofi began its global R&D department restructuring last month. The internal adjustments are evident.Coincidentally, both Roche and Eli Lilly have executives retiring.First, after working for Roche for 14 years, James Sabry, Head of Roche Pharma Partnering, will retire, and Boris Zaïtra, current Head of Group Business Development, will be appointed as Head of Corporate Business Development.Secondly, Alonzo Weems, Executive Vice President of Corporate Risk Management and Chief Ethics & Compliance Officer of Eli Lilly, as well as a member of the Eli Lilly Executive Committee, will retire on December 31, 2024. During this period, Alonzo Weems will continue to be responsible for his current role; meanwhile, Eli Lilly will seek a successor from both internal and external candidates.Reply "V" for more information about the e-journal.
