Top 10 Multinational Pharma Companies in China Competitiveness Ranking 2023

Jan 16, 2024 20:57 CST Updated 20:57

AstraZeneca

Biopharmaceutical Manufacturer

MSD

Pharmaceutical R&D and Manufacturer

Novartis

Drug Development and Manufacturing

Sanofi

Pharmaceutical R&D Developer

Roche

Oncology Drug Research, Development, and Manufacturing

Novo Nordisk

Insulin Developer and Manufacturer

Takeda

Biopharmaceutical Manufacturer

Eli Lilly

Global Pharmaceutical R&D and Production Company

Pfizer

Pharmaceutical R&D Developer

Johnson & Johnson

Healthcare Product Manufacturers, Health Service Providers

In recent years, amid the unprecedented global upheaval, multinational healthcare and pharmaceutical companies have witnessed a divergence in strategies. However, more companies are opting for innovative approaches and deeper integration into China — "The next China is still China."

As the second largest medical market globally, the Chinese market is enormous and continues to maintain its strong appeal. However, in the face of a constantly changing environment,"Adjustment”Has become a necessity, "Development, Cooperation, Integration”Becoming the main theme of the times, multinational corporations need a new business logic for their localization and development in China.

In the midst of great changes in the current era, multinational pharmaceutical companies that take the lead in deeper integration into the Chinese market, expand the "pie," and influence the global landscape with China's new localization and development strategies will become the new trend in the industry.

Among the many large health multinational enterprises developing in the Chinese market, who is more competitive in China? Why is it THEM? What can we learn from this?

Therefore, Med+ Research Institute jointly released with the Shanghai Health Development Research CenterFirst "2023 Healthcare Multinational Enterprise China Competitiveness Ranking"。

Over a period of six months, the Med+ Research Institute summarized the core localization capabilities of multinational healthcare companies through data quantification analysis, desk qualitative research, and expert interviews:Revenue, Pipeline, Brand, Talent, Business DevelopmentFive DimensionsThe 36 indicators provide a comprehensive evaluation of large health multinational enterprises; benchmarking the true value of the industry, discovering and encouraging large health enterprises truly committed to innovation in China and expanding healthcare accessibility, thereby creating value empowerment for the four major fields: the government, hospitals, patients, and MNCs.

It should be emphasized that, according to the varying degrees of impact on corporate competitiveness, the weightings of the five key areas also differ in order to more fairly assess the competitiveness of each enterprise.Among them:

Revenue DimensionWeightThe highest proportion, the list specially subdivides it intoRevenue Scale、Revenue Share、Revenue Growth RateThree key indicators to comprehensively evaluate the "performance" of multinational pharmaceutical and medical device companies in China;
Pipeline DimensionWeightRanking Second, as the underlying logic supporting corporate revenue, the list pays special attention to pharmaceutical companies.Number of Approvals in China、Approval Speed in China、Phase III Clinical Development in ChinaThree indicators;
Business Development,Brand, TalentDimensional DistributionResidual Weight.

Reviewing the past and looking forward to the future, today we will first take a look at the 2023 ranking of global pharmaceutical companies' competitiveness in the Chinese market.

1. The above data are all derived from the public data compiled by Med+ Research Institute; global revenue, China revenue scale, China revenue share (H1 2023), China revenue growth rate (CAGR of sales in China from 2020-2022); exchange rates calculated based on the exchange rate on the day of the financial report release.

2. Product Pipeline, Patents, and Journal Data Statistics (as of October 2023); Number of Approvals in China, Approval Speed in China (2020 - October 2023), Phase III Clinical Trials in China (as of October 2023);Data for Class III medical device certificates only include newly approved products from the National Medical Products Administration (NMPA); new drugs include chemical drugs (Category 1, Category 2, Category 5.1), biologics (Category 1, Category 2, Category 3.1).

3. The number of clinical trials only includes Phase III biopharmaceutical trials; 2023 data is only counted up to October; data source: Drug Clinical Trial Information Registration and Public Disclosure Platform.

Top 1 in the List of China Competitiveness of Multinational Pharmaceutical Enterprises0：

AstraZenecaRanked 1st, but only 8th in global revenue. This is due to ranking 2nd in revenue and 3rd in the pipeline in the Chinese market.Ranked 1st in business development and 3rd in talent, achieving outstanding performance to claim the top spot.
MSDRanked 2nd, with global revenue ranked 4th. Mainly driven by revenue and talent ranked 1st.
NovartisRanked 3rd in both global revenue and China's competitiveness list, relatively balanced.
Similar to AstraZeneca and MSD,Roche, SanofiCompanies with higher competitiveness rankings in China than their global revenue rankings, respectively ranked 4th and 6th on the China Competitiveness List; additionally,Novo Nordisk,Takeda Pharmaceutical Company Limited,Eli LillyAlthough no longer on the global top 10 revenue list, they have all entered the top 10 of China's competitiveness ranking, ranking 8th, 9th, and 10th respectively, thanks to their rapid development in the Chinese market.
Pfizer, Johnson & Johnson Innovative PharmaceuticalsThese are the only two companies on China's Competitiveness List that, despite being on the global revenue Top list, have a lower ranking on the China Competitiveness List than on the global revenue list, indicating that these two companies still have potential to be further tapped in the Chinese market; they rank 6th and 7th respectively on the China Competitiveness List.

List of China Competitiveness Rankings for Global Health Enterprises

——Top 10 Pharmaceutical Companies

AstraZeneca

Total Score 72.3

Revenue 31.3, Pipeline 17.8

*Only the data of the two largest weighted assessment dimensions are disclosed, the same applies below.

AstraZeneca in totalPoints72.3Topped the list of "Multinational Enterprises' Competitiveness in China" in the pharmaceutical field.

Revenue Dimension RankingSecond：

Revenue scale in China is approximately$3 billion, ranked second;
Revenue from China accounts for approximately 14%, much higher than the average 9% share of TOP10MNC pharmaceutical companies.Ranked at the top among multinational pharmaceutical companies;
（2020-2022 AnnualizationChina's revenue growth rate is 4%, ranking in the middle.。

Pipeline Dimension(2020-2023) ScheduleFourth：

Number of Pipeline Approvals in China Ranks Second(Parallel)；
China PipelineThe approval speed needs to be accelerated compared to the FDA approval time, ranking only eighth.
Number of Phase III Clinical Trials in China,Ranked First。

The top-ranked business expansion dimension is even moreAstraZeneca's strength lies in its seemingly consistent role as "the first to take risks":The first innovative pharmaceutical company jointly established with the "National Team" China Investment Corporation's Advanced Manufacturing Industry Investment Fund (FIIF);The first to establish a county-level tumor team; the first to form a下沉thousands-strong team for county-level engagement; the first to explore an all-channel collaboration model...

In August 2023, AstraZeneca Global R&D Hong Kong Branch was established for the first time, which will fully connect the Greater Bay Area's large circulation and make the Guangdong-Hong Kong-Macao Greater Bay Area the first stop for innovative drugs entering China.

In December 2023, AstraZeneca acquired Gracell Biotechnologies, a Chinese clinical-stage biotech company, for $1.2 billion, establishing an innovative business ecosystem model among China's Biotech, Big Pharma, and investors.

Most importantly, these business expansions form a良性closed loop with their ecosystem pipeline and revenue.Become the booster for its performance growth in the Chinese market.

默沙东(Merck Sharp & Dohme)

Total Score 65.7

Revenue 34.9, Pipeline 11.9

MSD with a total score65.7Ranked second in the "Multinational Enterprise Competitiveness in China's Pharmaceutical Industry."

Revenue Dimension RankingFirst：

Revenue in China: $3.6 billionRanked at the top of multinational pharmaceutical companies；
Revenue from China accounts for approximately 13%, ranking second;
（2020-2022 Annualized)Revenue in ChinaGrowth rate of 27%,Ranked First。

Pipeline Dimension(2020-2023) ScheduleSixth：

China PipelineTOP 10 MNC pharmaceutical companies by number of approvals, ranked sixth (tied).
China PipelineApproval Speed Ranks Seventh;
The Number of Phase III Clinical Trials in China Ranks Third.

In the past three years, MSD's performance growth rate in China has beenDouble-digit high growth, helping it become the revenue champion among multinational pharmaceutical companies in the Chinese market in 2023.This achievement mainly relies on its two flagship drugs——PD-1 monoclonal antibody Keytruda (K drug), HPV vaccine Gardasil。

By the end of 2023, Keytruda (K药) has been approved for more than 12 indications in China (ranking first among imported PD-(L)1 inhibitors); Gardasil (佳达修), the HPV vaccine approved for marketing since 2015, remains the world's only nine-valent HPV vaccine. In Q2 2023, its global HPV vaccine revenue reached $2.458 billion (+53%), primarily driven by the Chinese market.

Looking to the future, MSD alsoMore Innovation NeededPipeline Breakthrough Supports Growth in China。

Novartis

Total Score 56.5

Revenue 16.6, Pipeline 20.5

Novartis with a total score56.5Ranked third in the "Multinational Enterprises' Competitiveness in China's Pharmaceutical Sector."

Revenue Dimension RankingFourth：

Revenue in China approximately $1.74 billion, ranked third;
Revenue from China accounts for less than 7%, ranking sixth.；
（2020-2022 AnnualizedRevenue growth in China is approximately 10%, ranking third.

Pipeline Dimension(2020-2023) ScheduleFirst：

China PipelineNumber of approvals,With 15 new drugs or indications,PositionRanks first in the number of new drug launches in China by multinational pharmaceutical companies.；
China PipelineApproval Speed Ranks 9th；
The Number of Phase III Pipeline Clinical Trials in China Ranks Fifth.

The pipeline is key to Novartis' success in the Chinese market, especiallyInnovative Drugs；In the past three years, newly approved products have included several blockbuster drugs, such as the immunology star drug Cosentyx.(Secukinumab)。

During the earnings call, Novartis CEO Vas Narasimhan stated,Novartis' many products in China "outperform the market"Among them, Entresto (Sacubitril/Valsartan) for the treatment of hypertension and the arthritis drug Cosentyx performed remarkably well, with Cosentyx achieving sales in China.Double-digit growth。

In addition, Novartis ranks second in the business development dimension.Mainly benefiting from frequent initiatives in the Chinese market in recent years, especially increased investment in deeper early-stage innovation. On January 5, 2024, Novartis announced that it had reached an agreement to acquire Sinoreno Medicine, a China-based clinical-stage biotech company, and will integrate it entirely into Novartis China, thereby strengthening its layout in the renal disease field in China.

Roche Pharmaceutical

Total Score 52.7

Revenue 14.9, Pipeline 17.9

Roche Pharmaceuticals with a total score52.7Ranked fourth in the "Multinational Enterprises' Competitiveness in China's Pharmaceutical Sector."

Revenue Dimension RankingSixth：

Revenue in China approximately $1.68 billion, ranking fifth;
Revenue from China accounts for approximately 7%, ranking fifth;
（2020-2022 Annualized)China's revenue growth rate is -4%, ranking tenth.

Pipeline Dimension(2020-2023) ScheduleThird：

ChinaPipelineNumber of approvals ranks second (tied);
ChinaPipelineApproval Speed Ranks Sixth;
PipelineThe number of Phase III clinical trials in China ranks second.

Although its drug performance declined due to patent impacts from 2020 to 2022, Roche Pharmaceuticals' sales in China resumed growth in the first three quarters of 2023.

Pipeline is also a major driver of its performance; its financial report shows that the main contributors were the strong sales of the flu drug Tamiflu, as well as the cancer drugs Herceptin (trastuzumab), Perjeta (pertuzumab), and Xeloda. Additionally, its newly approved oncology drug in 2021, the anti-CD20 monoclonal antibody (obinutuzumab), and the novel mechanism anti-flu drug baloxavir marboxil have become representatives of high growth.

As the second dimension of talent, Roche Pharmaceuticals has also been innovating in its talent organization structure. In August 2021, Roche Pharmaceuticals China pioneered the "Customer Interaction Business Model." Under this model, Roche Pharmaceuticals China is divided into two major fields in its operations — Oncology and Specialty Medicines.To build a business model centered on the field of disease treatment.

Sanofi

Total Score 45.4

Revenue 17.3, Pipeline 11.9

Sanofi with a total score45.4Ranked fifth in the "Multinational Enterprises' Competitiveness in China's Pharmaceutical Sector."

Ranked Third in Revenue Dimension:

Revenue in China is approximately 1.7 billion USD, ranking fourth;
Revenue from China accounts for approximately 8%, ranking fourth;
（2020-2022 Annualized)China's revenue growth rate is approximately 4%, ranking sixth.

Pipeline Dimension(Ranked fifth from 2020 to 2023)：

ChinaPipelineThe number of approvals ranks fourth;
ChinaPipelineApproval speed ranks fourth;
PipelineIIIPeriodNumber of Clinical Trials in China, Ranked Ninth。

Previously, SanofiMainly cardiovascular and vaccine products in the Chinese market, especially cardiovascular drugs such as Plavix, Lantus insulin, etc., are an important pillar of its revenue in the Chinese market.As its flagship autoimmune drug Dupixent joined and began to lead the growth in performance, China became Sanofi's second-largest market globally in 2022.

Sanofi currently ranks fifth in China's competitiveness list, and needs to accelerate its pipeline to enter the top three first-tier group; it is reported thatPlanned to be introduced by 202525+Innovative Products.

Pfizer

Total Score 45.2

Revenue 11.0, Pipeline 19.8

Pfizer with a total score45.2Ranked sixth in the "Multinational Enterprise Competitiveness in China's Pharmaceutical Sector."

Ranked Eighth in Revenue Dimension:

Ranked tenth in revenue scale in China;
Revenue Share in China, ranked tenth；
（2020-2022 AnnualizedRevenue growth in China is in the upper-middle range.

Pipeline Dimension(2020-2023) Ranked Second：

ChinaPipelineThe number of approvals ranks fifth;
ChinaPipelineApproval Speed Ranks First Among Multinational Pharmaceutical Companies, with an average delay of only 14 months compared to FDA approval (the average for the TOP 10 MNC pharmaceutical companies is 74 months);
PipelineNumber of Phase III clinical trials in China ranks eighth.

Although Pfizer's COVID-19 vaccine has not been approved in mainland China,In recent years, its cephalosporins (Cefalosporins), breast cancer drug Ibrance (Palbociclib), and other products have become the main drivers of performance. The small-molecule COVID-19 oral drug Paxlovid, approved in 2022, also generated significant revenue in its first year.

Pfizer's biggest advantage in China is the speed of new drug approvals.

Taking Dacomitinib, an innovative drug for non-small cell lung cancer approved in 2019, as an example, Chinese participants accounted for 50% of the clinical project, providing high-quality clinical efficacy data. As a result, it was rapidly approved for marketing in China and achieved almost simultaneous submission and approval globally, including in the United States, Europe, and Japan, for the first time.

J&J Innovative Medicine

Total Score 40.6

Revenue 12.7, Pipeline 10.6

Johnson & Johnson Innovative Pharmaceuticals with a total score40.6Ranked seventh in the "Multinational Enterprise Competitiveness in China's Pharmaceutical Sector."

Ranked seventh in revenue dimension：

Ranked sixth in revenue scale in China;
Revenue share in China ranks eighth.；
（2020-2022 AnnualizedChina's revenue growth ranks fourth.

Pipeline Dimension(Ranked 8th from 2020 to 2023)：

ChinaPipelineThe number of approvals ranks ninth (tied).
ChinaPipelineApproval Speed,Ranked second;
PipelineNumber of Phase III Clinical Trials in China, Ranked Sixth。

On September 14, 2023, Johnson & Johnson announced a brand refresh, retiring the name of its pharmaceutical division Janssen and renaming it Johnson & Johnson Innovative Medicine.

In recent years, it has increasingly focused on hot fields such as autoimmune diseases and oncology, with new drug approvals including Darzalex (oncology), Erleada (oncology), Tremfya (autoimmune), and Daratumumab (oncology).Overall, it still needs more innovative products to support its performance in the Chinese market. Hopefully, the former glory of Xi’an Janssen can inject more strength into Johnson & Johnson's innovative pharmaceuticals.

Novo Nordisk A/S

Total Score 39.9

Revenue 15.8, Pipeline 11.0

Novo Nordisk with a total score39.9Ranked eighth in the "Multinational Enterprises' Competitiveness in China's Pharmaceutical Sector."

Ranked Fifth in Revenue Dimension：

Revenue in China is approximately US$1.32 billion, ranking seventh;
Revenue from China accounts for about 8%, ranking third;
（2020-2022 AnnualizedChina's revenue growth rate is -1%, ranking ninth.

Pipeline Dimension(2020-2023) Ranked Seventh：

ChinaPipelineThe number of approvals ranks eighth;
ChinaPipelineApproval Speed Ranks Third;
PipelineNumber of Phase III Clinical Trials in China, Ranked Seventh。

Novo Nordisk is well-known in China for its insulin. It has a strong presence in细分领域 of chronic diseases such as diabetes, obesity, rare blood disorders, and endocrine disorders.

The "weight-loss wonder drug" semaglutide, which has swept the globe, was first approved for marketing in China in April 2021 for the treatment of type 2 diabetes, but has not yet been approved for weight-loss indications.In the first three quarters of 2023, the sales of Semaglutide Injection (Novo Nordisk) for Type 2 diabetes indication in China increased by 95% at constant exchange rates and took the leading position in China's GLP-1 market.

In addition, its pipeline approval speed in China ranks third. Novo Nordisk's R&D center in China was established in Beijing in 1997, pioneering the industry and becoming the first multinational biopharmaceutical company to set up an R&D center in China.

Takeda Pharmaceutical

Total Score 34.8

Revenue 9.1, Pipeline 8.0

Takeda Pharmaceutical Company Limited with a total score34.8Ranked ninth in the "Multinational Enterprises' Competitiveness in China's Pharmaceutical Sector."

Ranked Tenth in Revenue Dimension：

Ranked ninth in revenue scale in China;
Revenue share in China ranks ninth;
（2020-2022 AnnualizedRevenue growth rate in China is at the lower end.

Pipeline Dimension(Ranked 9th from 2020 to 2023)：

ChinaPipelineNumber of approvals,Ranked 9th (tied);
ChinaPipelineApproval Speed, Ranked Fifth；
PipelineIIIPeriodNumber of Clinical Trials in China, Ranked Tenth。

As the best-performing Asian company globally, Takeda Pharmaceutical Company Limited has been continuously increasing its innovation efforts in China over the past two years., and proposedThe Goal of China Becoming Takeda's Second-Largest Global Market by 2030。

In June 2022, Takeda's R&D Asia-Pacific headquarters officially settled in Shanghai, marking a comprehensive upgrade of its R&D strategy in China.Takeda is also accelerating the introduction of cutting-edge innovations and breakthrough therapies into China through its global synchronized drug development program.At the same time, by closely collaborating with all parties in the local innovation ecosystem, it drives源头 innovation in China and accelerates global drug development.

Eli Lilly

Total Score 33.9

Revenue 10.9, Pipeline 8.0

Eli Lilly with a total score33.9Ranked tenth in the "Multinational Enterprises' Competitiveness in China's Pharmaceutical Sector."

Ranked Ninth in Revenue Dimension：

Revenue in China is approximately US$7.7 billion, ranking eighth;
Revenue from China accounts for approximately 5%, ranking seventh.；
（2020-2022 AnnualizedRevenue growth in China is at the lower end.

Pipeline Dimension(2020-2023) Ranked Tenth：

China ranks sixth (tied) in the number of pipeline approvals;
China PipelineApproval Speed, Ranked 10th；
The number of Phase III pipeline clinical trials in China ranks fourth.

Eli Lilly is well-known in China for its diabetes drugs. In the past three years, its revenue growth in China has been mainly driven by its diabetes drug Trulicity (dulaglutide), the cancer drug Verzenio (abemaciclib), and the rheumatoid arthritis treatment Olumiant.

In September 2022 and August 2023, Eli Lilly submitted marketing applications in China for its global blockbuster product tirzepatide, indicated for glycemic control and weight loss. Additionally, the marketing application for its star Alzheimer's drug donanemab in China was accepted at the end of October 2023. If approved in the future, these products could become major revenue drivers for Eli Lilly in the Chinese market.

List of China Competitiveness Rankings for Global Health Enterprises

——Revenue, Pipeline Individual Lists

Revenue, PipelineThese two major dimensions represent the current achievements of large health multinational enterprises.Therefore, a special individual award is set up for outstanding enterprises.。

In the revenue dimensionRevenue growth rate,Reflects the extent of corporate progress and presents trend direction;Revenue share,Reflects the contribution of the Chinese market to the overall performance of multinational groups.
Innovative Product Launch in the Pipeline DimensionQuantity、Speed, Localization Rate, All of these are the performance potentials of multinational corporations.

2022 AnnualNo.1 Revenue Growth in China：

MSDIn+19%The growth rate ranks first in the pharmaceutical industry.TOP10 Multinational Pharmaceutical CompaniesThe average increase is2%。

H1 2023No.1 in China Revenue Share:

AstraZenecaIn14%Ranked first in pharmaceuticals,TOP10 multinational pharmaceutical companies average9%。

2020-2023Number One in China for Approved Pipelines:

NovartisIn15 ProductsNew drug launches in China rank first in pharmaceuticals, TOP10 multinational pharmaceutical companies average only9 Products。

2020-2023China Pipeline Speed No.1:

Pfizer, Inc.On average14 MonthsThe time difference between the U.S. and China for the new drug's market launch ranks first, with the average for the TOP10 multinational pharmaceutical companies being74 months。

Where is the future of multinational pharmaceutical companies? It lies in "expanding China's market" through deeper innovation and localization.

In the foreseeable future, multinational pharmaceutical companies will enhance cooperation and integration with local enterprises, continuing to be an indispensable force in China's pharmaceutical market.

Med+ Research Institute will also release this重磅list annually, serving as a mirror for the healthcare industry with data amid the changing landscape of a new era.

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