GSK to Reintegrate Respiratory Business Lines in China Next Month

For many years, respiratory diseases have been a core therapeutic area for numerous multinational pharmaceutical companies. However, significant changes have emerged this year. Let’s first discuss the latest adjustments made by GSK.

GSK’s Respiratory Business Unit Merger: Official Announcement Issued TodayFollowing last week’s news regarding the merger of GSK’s respiratory business lines, an official notification was issued today. GlaxoSmithKline (China) has formally informed its employees that, effective May 1, the organizational structure of the Respiratory Business Unit has been adjusted. Specifically, the former Innovative Products and Established Products divisions have been merged, and the entire respiratory team has been reorganized into two regional management centers for Southern China and Northern China.

The specific person in charge has also been announced: Li Guofeng, the current National Business Head for Innovative Products, will be responsible for the Respiratory business in North China; Lin Ziming, the current National Business Head for Classic Products, will be responsible for the Respiratory business in South China.

Amidst these changes, the sales team for Trelegy, an innovative product, was merged into the sales team for Seretide, a classic product, to conduct collaborative academic promotion. Meanwhile, Anoro, which was newly included in the latest National Reimbursement Drug List at the end of last year, established a dedicated sales team for its promotion.

According to Dami, this structural integration has no impact on the territories of most representatives and district managers.

▌ Within One Year, Returning to the Major Respiratory Portfolio

At this time last year, GSK China separated its respiratory portfolio into new and legacy products, restructured its prescription drug business unit, and newly established the Innovative Products Business Unit and the Established Products Business Unit. The Innovative Products Business Unit included two new respiratory medications, Trelegy and Anoro, and was led by Chen Siyuan (who has since left GSK and is currently the General Manager of Bristol Myers Squibb China). The Established Products Business Unit comprised Advair, Relvar, and the hepatitis product portfolio.

For those who follow Dami’s daily updates, the recent shifts among multinational pharmaceutical companies have likely been evident. To adapt to market changes, many multinational pharmaceutical firms have chosen over the past two years to separate the promotion of mature products from that of innovative drugs. It is believed that GSK China’s decision made a year ago was also driven by similar considerations.

Unexpectedly, the domestic pharmaceutical market in China underwent significant changes last year. Both the expansion of the national volume-based drug procurement program and the advancement of the second batch of national centralized procurement, as well as the release of the new National Reimbursement Drug List, had a substantial impact on the product portfolios of pharmaceutical companies. In addition, the pandemic’s effect on the promotion of new products further spurred considerable changes. Taking GSK as an example, the inclusion of Anoro Ellipta in the national reimbursement list and the exclusion of Wanrui Shu determined the divergent fates of these two products.

GSK’s COPD treatment drug Anoro Ellipta (umeclidinium/vilanterol inhalation powder) was approved in China in March 2018 and included in the new national reimbursement drug list by the end of 2019. Another GSK drug for COPD treatment, Trelegy Ellipta (fluticasone fume/umeclidinium/vilanterol inhalation powder), was also approved and launched in China at that time.

The organizational restructuring announced today can be seen as a proactive response to market changes.

Original Title: Next Month, GSK's Respiratory Portfolio Will Be Consolidated!