Johnson & Johnson, Bayer, and Other MNCs Accelerate Strategic Restructuring: Yunnan Baiyao, AbbVie, Biogen Announce Leadership Changes in February

Mar 01, 2024 20:38 CST Updated 20:38

Johnson & Johnson

Medical Device R&D and Manufacturer

Recently, foreign media reported that Johnson & Johnson is closing its facility located in Brisbane, California, USA, which has approximately20R&D Base at Ten Thousand Feet (SFBC), and the closure of this park came less than18Months.

Although the spokesperson for this closure did not respond to how many employees were affected, when the campus officially opened in September 2022, Johnson & Johnson's R&D scale in the U.S. Bay Area more than doubled, with data indicating a planned workforce of approximately 400 employees. The campus is a research base focused on emerging gene and RNA therapies, as well as retinal and infectious disease studies.

It is reported that Dr. James Merson, the former head of Johnson & Johnson's Infectious Diseases Department, was SFBC's initial corporate leader but left the company in the first half of 2023 after the department merged with the vaccine team.

It is reported that, Johnson & Johnson has started since 2014, its innovation center located in California has been promoting investment and cooperation with academic and industry partners in the Bay Area and Greater California ecosystem to accelerate early-stage healthcare innovation. This base closely connects Janssen R&D, Johnson & Johnson Innovation, and Johnson & Johnson MedTech through product development.

Johnson & Johnson Spokesperson Confirms Plant Closure in Statement Sent to Foreign Media on Sunday Evening, Says Pharmaceutical and Medical Technology Divisions "Will Continue to Play a Significant Role in California"; Company to Establish "New California Innovation Center."

A relevant spokesperson stated: "As the world's largest and most diversified healthcare products company, we continuously evaluate our operations, invest for the future, and strive to make the greatest impact on patients."

Notably, this is identical to the statement released by a Johnson & Johnson spokesperson to *The Business Times* in March 2023, when the company underwent a major reorganization and shut down its medical device and surgical robotics facilities in Redwood City and Santa Clara. The same statement was also issued by Johnson & Johnson a month before the layoffs at its Brisbane plant.

According to recent financial reports, among Johnson & Johnson's three major global businesses, the consumer health segment has been decreasing year by year, accounting for approximately 15.75% (US$14.95 billion) of total sales in 2022; the medical device revenue accounted for 28.9% (US$27.4 billion), and the pharmaceutical business revenue accounted for 55% (US$52.56 billion).

The financial data for 2023 recently released shows that the revenue from the innovative pharmaceuticals business has reached $54.759 billion, a year-on-year increase of 4.2%, while the sales of medical devices amounted to $30.4 billion, marking a year-on-year growth of 10.8%. Following the restructuring of the former Janssen company, its consumer health business no longer exists, and Johnson & Johnson’s "three main businesses" have now been streamlined into two core operations.

In addition, Wang Wei, the former head of Novartis' hematology division, has officially joined Johnson & Johnson Innovative Pharmaceuticals (formerly Janssen) China Oncology Business Unit as the head of the Solid Tumor Business Unit. She will be fully responsible for the business decisions and management of Johnson & Johnson Innovative Pharmaceuticals’ China Solid Tumor Business Unit, lead the sales and marketing teams, and drive business development and growth. Johnson & Johnson Innovative Pharmaceuticals announced this news internally last Friday (February 23). After joining Johnson & Johnson Innovative Pharmaceuticals, Wang Wei will be based in Beijing. Liu Ao, the head of the solid tumor market team, and the managers of the five major regions of the sales team will report directly to Wang Wei.

Professional analysis points out that, with Johnson & Johnson's adjustments across various business segments, the company will further focus on medical devices and pharmaceuticals on a global scale.

In fact, it is not uncommon for large pharmaceutical companies to adjust their pipelines. Since 2024, within a span of two months, several top global pharmaceutical companies, including Roche, Sandoz, Bayer, Lonza, and Pfizer, have successively announced layoffs.

Among them, Bayer proposed in January to accelerate its restructuring and layoffs, hoping to completely reorganize its organizational structure on a global scale. The project, internally called "Dynamic Shared Ownership" (DSO), aims to bring greater speed and better results to the group. It is reported that the newly formed flexible teams will facilitate independent decision-making, with the focus of layoffs being on middle management personnel within the group. In the United States alone, the group has cut 40% of managerial positions in the pharmaceutical division, affecting hundreds of employees.

Recently, regarding the relevant layoff plans, Bayer has announced new developments. The group specified the amount of severance pay in the "AHV 56-" plan. Employees under the age of 56 are entitled to receive a severance package equivalent to 1.2 times their total monthly salary multiplied by years of service. An employee who has worked at Bayer for ten years with a monthly income of 7,000 euros will receive 84,000 euros. Married employees with children will also receive social benefits. The company even introduced incentives such as a "sprint bonus" and a "Future Skills Academy" to provide retraining programs for affected employees, accelerating the layoff process, which demonstrates the company’s determination and actions regarding layoffs.

Industry insiders said that 2024 is a year full of challenges and changes for the pharmaceuticals industry. The global economy is filled with uncertainties, and many biopharmaceutical companies are facing market challenges. Asset sales and layoffs are all proactive measures to actively respond to market changes.

Multinational pharmaceutical companies

AbbVie Replaces CEO

On February 20, AbbVie's official website announced that Robert A. Michael, the current COO, will succeed Richard A. Gonzalez as the company's new CEO.

The company's board of directors has unanimously selected Robert A. Michael, the current president and chief operating officer, to succeed Richard A. Gonzalez as the company's chief executive officer (CEO). Mr. Gonzalez, who has served as CEO since the company's inception, will retire from the CEO position on July 1, 2024, and will assume the role of executive chairman of the board. Additionally, the board has appointed Mr. Michael as a member of the board, effective July 1, 2024.

According to the introduction, Robert is the President and Chief Operating Officer (COO) of AbbVie. As a member of AbbVie's executive leadership team, Robert oversees global commercial operations, finance, corporate human resources, global operations, business development, and corporate strategy. He previously served as Vice Chairman and President, holding leadership roles across multiple business areas, including pharmaceuticals, aesthetics, diagnostics, diabetes care, and nutrition, with 31 years of professional experience.

Previously worked at Abbott. After AbbVie split from Abbott in 2013, he established and led the company's first financial planning organization, serving as Vice President of Financial Planning and Analysis at AbbVie. Subsequently, he held a series of leadership positions with increasing responsibilities, including Vice President, Director of Commercial Operations; Vice President, Treasurer; and Vice President, Corporate Controller. He was appointed Chief Financial Officer in 2018, Vice Chairman of Finance and Commercial Operations in 2021, Vice Chairman and President in 2022, and President and Chief Operating Officer in 2023.

Former GSK Executive Joins Astellas

On February 23, according to public reports, Claus Zieler, Chief Commercial Officer of Astellas, appointed Michael Petroutsas as the head of U.S. commercial operations. Petroutsas will replace Mark Reisenauer, who is set to leave at the end of March, and will be responsible for Astellas' commercial operations in the United States.

It is reported that before joining Astellas, Michael Petroutsas served as the Senior Vice President of GSK's U.S. Specialty and Oncology business, successfully launching the U.S. Oncology division and focusing on the commercialization of transformative medicines to help many patients with complex diseases in the fields of immunology, hepatology, respiratory, and nephrology. Prior to that, he also held senior positions at Pfizer and Novartis Oncology.

Biogen Asia-Pacific Leadership Change

Recently, there are rumors that Weibo Ding will replace Francis Wan as the head of Biogen's Asia-Pacific region.

It is reported that before joining Biogen, David Ding served as the Global Chief Operating Officer (COO) and General Manager of China at Oculis, focusing on the ophthalmology treatment field. He has also held positions in several multinational pharmaceutical companies such as Bristol-Myers Squibb, Xi'an Johnson & Johnson, Novartis China, and Fresenius Kabi. In 2022, David Ding stepped down from his position as President of Fresenius Kabi China to join Switzerland-based Oculis.

GSK Replaces Compliance Head in China

On February 27, GSK China announced that Tingting Zhai, currently Core Business, Anti-Infectives and R&D Finance Director, will assume the role of China Compliance Head. She will report directly to Christine Ng, Vice President of GSK and GCI Compliance Officer, and join the GSK China Leadership Team.

GSK's current China Compliance Head, Zhang Xuhao, will complete his term in July this year. The handover of duties will begin next month, and the subsequent appointment has not been announced yet.

It is reported that Zhai Tingting holds a master's degree in accounting and an MBA from Duke University. She has worked in the Investment Banking Department of HSBC Hong Kong and the Strategy Development Department of China Merchants International, among others. She later joined Eli Lilly as a finance and internal consultant. In 2014, Zhai Tingting joined the finance department of GlaxoSmithKline, successively serving as the Finance Director for Prescription Drugs and Vaccines, Finance Director for the Prescription Drug Supply Chain, and R&D Finance Director.

On the other hand, GSK's global official website also announced on February 15 that the group had completed the acquisition plan of Aiolos Bio.

According to the introduction, this is a clinical-stage biopharmaceutical company focused on addressing unmet clinical needs of respiratory patients, with potential asthma R&D pipelines such as AIO-001. In addition, completing the acquisition of Aiolos will help GSK expand its R&D capabilities in the field of respiratory diseases and consolidate its leading position in this area.

Local pharmaceutical enterprises

Yunnan Baiyao "Changes Leadership"

On February 28, Yunnan Baiyao released the resolution announcement of the Second Meeting of the Tenth Board of Directors in 2024. The content showed that Mr. Zhang Wenxue was elected as the chairman of the Tenth Board of Directors of the Group, with a term from the date of approval by this board of directors until the expiration of the Tenth Board of Directors.

According to the introduction, he served as Deputy General Manager of Yunnan Phosphate Chemical Industry (Group) Company, General Manager and Deputy Party Secretary of Yunnan Phosphate Chemical Group Co., Ltd., Party Secretary and General Manager of Yunnan Phosphate Chemical Group Co., Ltd., Director, Deputy General Manager, and Standing Committee Member of the Party Committee of Yuntianhua Group Co., Ltd., General Manager, Deputy Party Secretary, and Vice Chairman of Yuntianhua Group Co., Ltd., and Party Secretary and Chairman of Yuntianhua Group Co., Ltd. He currently serves as the Party Secretary and Chairman of Yunnan Baiyao Group Co., Ltd. (also serving as the Chairman of Chongqing International Composite Materials Co., Ltd.).

Notably, on February 8, two senior executives of Yunnan Baiyao resigned. According to the announcement, the tenth board of directors of Yunnan Baiyao Group Co., Ltd. recently received resignation reports from Yin Pinyao, Chief Operating Officer and Senior Vice President, and Yu Juan, Chief Human Resources Officer. Due to personal reasons, Mr. Yin Pinyao has applied to resign from his positions as Chief Operating Officer, Senior Vice President, and all other posts within the company and its holding subsidiaries; Ms. Yu Juan has also applied to resign from her position as Chief Human Resources Officer and all other posts within the company and its holding subsidiaries due to personal reasons.

InnoCare Appoints New Chief Commercial Officer

On February 20, it was reported that Shaofeng Chen joined InnoCare Pharma as Chief Commercial Officer, taking full responsibility for the company's commercial operations, including sales, marketing, medical affairs, market access, channel and customer management, etc. Meanwhile, Xiaodong Jin will transition to the role of Chief Business Development Officer.

It was introduced that Chen Shaofeng graduated from the Clinical Medicine program at Shanghai Jiao Tong University and holds an EMBA degree from the China Europe International Business School. With nearly 30 years of experience in market sales management within the pharmaceuticals industry, he is well-versed in various specialty drug treatment areas, including oncology and autoimmune diseases. Before joining Nuokang Bio, Chen Shaofeng served as the General Manager of the Oncology Second Business Unit and the head of the specialty drugs division at Roche Pharmaceuticals. Prior to that, Chen Shaofeng held positions at major pharmaceutical companies such as AstraZeneca, AbbVie, Abbott, and Merck.

Xiaodong Jin holds an Executive Master of Business Administration (EMBA) degree from Peking University and has nearly 30 years of experience in the global pharmaceuticals and healthcare industry. He was appointed Chief Commercial Officer of InnoCare Pharma in June 2020. Prior to that, Xiaodong Jin served as the head of the Core Products Division at Sanofi, General Manager of the Diabetes Division and Greater China at Abbott, and also worked at Novartis for over 13 years.

Executive of Panlong Pharmaceutical Resigns

On February 1, Panlong Pharmaceutical announced that due to work arrangements, Mr. Xie Xiaolin resigned from his position as the company's General Manager, and Mr. Zhang Zhihong and Mr. Wu Jie resigned from their positions as the company's Deputy General Managers. Meanwhile, Mr. Zhang Shuiping resigned from his position as a director of the company for personal reasons. After resigning from the position of General Manager, Mr. Xie Xiaolin will continue to serve as the Chairman of the Board, Director, and Chairman of the Board's Strategy Committee. After stepping down as Deputy General Manager, Mr. Zhang Zhihong will continue to serve as a Director and member of the Board's Nomination Committee, and Mr. Wu Jie will continue to serve as a Director and Secretary of the Board.

The company's 17th meeting of the fourth Board of Directors held on January 30, 2024 approved the proposal "Regarding the Appointment of Senior Management Personnel," unanimously agreeing to appoint Mr. Hu Qifei as the new General Manager. Mr. Hu Qifei’s term will commence from the date the Board of Directors approves the appointment until the current Board's term expires.

The current senior management of the company consists of General Manager Mr. Hu Qifei, Vice General Managers Mr. Zhang Dezhu, Mr. Huang Jilin, and Mr. Meng Chong, Board Secretary Mr. Wu Jie, and Financial Director Mr. Zhu Fengming.

Major Personnel Changes at Tigermed

On February 28, Tigermed announced that Dr. Yang Bo had resigned from all positions in the company due to personal work reasons. The board of directors proposed on February 27 that Liu Yuwen take over his position. Liu Yuwen will serve as the convener of the Nomination Committee and a member of the Audit Committee and Strategy Development Committee, with a term lasting until the end of the board's tenure. This change may bring new directions for the company’s development.

Editor: Zhu Di