AstraZeneca, Sanofi, and Pfizer Restructure for Innovation and Digital Transformation Amid Global Workforce Optimization

Recently, AstraZeneca announced the latest organizational restructuring and the establishment of a new CCiC Innovation Management Team, which will be officially implemented on July 1.

The CCIC Innovative Disease Management Team of the Digital and Commercial Innovation Department will be built on the core foundation of therapeutic areas and comprehensive channels. It will officially incorporate the innovative market positions from various business units and will be led by Ms. Lily Zhu, the current Vice President of AstraZeneca China, who also heads the Digital and Commercial Innovation Department as well as the Commercial Strategy and Operational Excellence Department.

At the same time, the following official appointments were announced: Wang Jian as Executive Director of Cardiovascular, Renal, and Metabolic Commercial Innovation; Cai Xiaoyu as Deputy Director of Respiratory, Digestive, and Autoimmune Commercial Innovation; Xu Chen as Director of Omnichannel Commercial Innovation. Additionally, the Director of Oncology Commercial Innovation will soon be in position.

At this point, AstraZeneca seems to have brought a阶段性 conclusion to its previous frequent organizational adjustments.

1

AstraZeneca in Turmoil,

Embrace Innovation Wholeheartedly

According to incomplete statistics from Sina Medicine, after AstraZeneca's key products in the respiratory field, budesonide inhalation suspension, and in the digestive system, esomeprazole for injection, both failed to be included in the centralized procurement in June of last year, AstraZeneca China carried out a series of structural adjustments targeting these areas:

In June 2021, the existing digestive and respiratory nebulization businesses were merged to establish the Digestive and Respiratory Nebulization Business Department.

In September 2021, AstraZeneca China announced the official establishment of its Rare Disease Business Unit, marking its entry into the rare disease field.

In November 2021, several business units of AstraZeneca were reorganized through mergers and spin-offs: the county-level oncology business was merged into the Oncology Business Unit; the county-level non-oncology business was established as a separate Chronic Disease Business Unit for counties; the existing Cardiovascular & Metabolism Business Unit and Renal Business Unit were merged to form the Cardiovascular, Renal & Metabolism Business Unit.

In January 2022, the establishment of the Omni-Channel Business Unit was announced.

In February 2022, the merger of the Respiratory and Autoimmune Division with the Digestive and Respiratory Nebulization Division was announced. At the same time, the divestiture of the Respiratory and Digestive Division was terminated.

Thus, AstraZeneca China's four major business architectures have been formed, which are the Oncology Business Unit; the Respiratory, Gastrointestinal and Autoimmunity Business Unit; the Cardiovascular, Renal and Metabolism Business Unit; and the Rare Disease Business Unit.

Frequent structural adjustments have also triggered a butterfly effect of executive departures. According to incomplete statistics from Sina Medicine, in less than a year, more than 10 executives have resigned —

Now, the establishment of the new CCiC Innovation Management Team and related personnel appointments seem to have stabilized AstraZeneca amid its turbulence. This also reveals AstraZeneca's next strategic step: fully embracing innovation and advancing digitalization.

The new strategy of intensifying innovation has once again been confirmed in a recent interview by Sina Medicine with Mr. Kevin Chen, General Manager of AstraZeneca China Oncology Business Unit, and Ms. Haiying Yang, Vice President of AstraZeneca China and Head of Medical Affairs. During the interview, Sina Medicine learned that AstraZeneca is committed to building an innovative ecosystem, and will accelerate the advancement of more innovative healthcare solutions in the future, including leveraging cutting-edge technologies such as artificial intelligence and big data to empower precision diagnostics. Collaborative efforts will focus on the development of digital pathology AI products, digital imaging products, and companion diagnostic tools, promoting early diagnosis, early treatment, and the refinement and standardization of clinical care within the oncology field. [Related reading: "Deepening Presence in Oncology: Unveiling AstraZeneca China's Latest Strategy"]

2

Innovation Becomes the Key Word in Multinational Pharmaceutical Companies' Strategic Adjustments,

Actively Promote the Digital Process

In addition to AstraZeneca, since the beginning of this year, several multinational pharmaceutical companies have also embarked on new strategies and restructured their organizations. These measures include spin-offs, business integration, executive changes, and large-scale layoffs. Among these strategic adjustments, it is not difficult to see that innovation holds a prominent position. Moreover, multiple multinational pharmaceutical companies have simultaneously embraced digitalization.

Sanofi: Spin-off API Company, Embrace Digitalization

In April this year, Sanofi announced that the French securities market regulatory agency AMF had approved the listing prospectus of its active pharmaceutical ingredient company EUROAPI. Once approved by the shareholders' meeting, it is expected to be listed on the Euronext Paris on May 6th. After the spin-off, Sanofi will hold a 30% stake in Euroapi.

In addition to the split, Sanofi is also actively embracing digitalization. To this end, at the quarterly investor teleconference held in early February this year, Sanofi stated that it would continue its layoff plan this year, expecting to cut 6,000 jobs globally by 2022.

Looking at the changes in the China region, in order to align with a series of policies such as China's volume-based procurement, Sanofi China recently announced the latest personnel appointments: Shi Wang will assume the role of Head of China and Head of Greater China for the General Medicines Division starting from August 1. Shi Wang will lead the acceleration of market transformation for Sanofi's insulin innovation product Soliqua and cardiovascular drug Praluent, as well as execute the volume-based procurement (VBP) strategy formulated for the new generation of basal insulin Toujeo. Meanwhile, Hoen霆 will take on the role of Global Head of Sanofi’s Digital Division. He will work at Sanofi’s Paris headquarters, responsible for defining and implementing the digital solutions portfolio for Sanofi’s General Medicines, Specialty Care, and Vaccines global divisions.

Pfizer: Digital Upgrade, Layoffs Across Multiple Regions

In April this year, Pfizer India announced a digital upgrade plan. In terms of staffing, Pfizer stated that it would hire new employees with "future skills and a growth mindset" and train existing employees while laying off other staff. Two months after the launch of this plan, Pfizer has terminated the employment of more than 200 sales representatives from its Indian branch.

Not only Indian companies, but according to Reuters, in January this year, as digital communication methods for medical staff continued to evolve during the pandemic, Pfizer will cut sales representative positions in the United States and plans to increase approximately half of its positions related to digitalization. Pfizer had speculated that after the end of the COVID-19 pandemic, more healthcare professionals would shift towards online interactions.

In the future, Pfizer's branches in other regions may also develop in this direction, continuously strengthening the digital development strategy.

Novartis: Merger to Establish Innovative Medicine Division

In April, Novartis CEO Vas Narasimhan announced the launch of a completely new organizational structure and operating model to support the company’s innovation, growth, and productivity goals over the next decade. Specifically, the pharmaceuticals and oncology divisions will be merged into one Innovative Medicines (IM) division, which will be split into two independent commercial organizations based on geographic regions: one for the U.S. and another for international markets. Each will operate independently, maintain separate accounting, and take full responsibility for all therapeutic areas.

In addition, Novartis announced the integration of three departments: Strategy, R&D Investment Portfolio Strategy, and Business Development, to establish a new Strategy and Growth function. The existing Technical Operations and Customer & Technical Solutions departments will be merged to form a new Operations function. Comprehensive administrative functions such as Finance, Human Resources, Compliance, Legal, and Communications will also be integrated at the global level.

As for the spin-off strategy that has been popular among multinational pharmaceutical companies in recent years, Novartis has not been left behind, and the spin-off of its generic drug business has long been on the agenda.

In October 2021, Novartis announced in its third-quarter report that it was considering spinning off or selling its generic drug division, Sandoz, with expectations to complete the process within 2022. Subsequently, Sweden's EQT Group, Germany’s Struengmann family, and private equity firms Blackstone Group and Carlyle Group were reported to be interested in acquiring it.

Editorial Responsibility: Eight Corners

This article is a reprint from the PharmSnap website. All images and text are owned by the original author, and the purpose of the reprint is to convey more information. It does not represent the views of this platform. If there are any issues regarding content, copyright, or other problems, please leave a message on this platform, and we will delete it as soon as possible.