Sanofi Splits Diabetes Business Unit into Oral and Injectable Teams

Source: Cyber Blue / Medical Representative Author: Aniya

For many foreign pharmaceutical companies, sales of older drugs that have lost patent protection are continuously declining, while new drugs are performing well. This inevitably leads to a shift and reallocation of internal resources—and this is only the beginning.

▍Multiple Pharmaceutical Companies, Changes in Medical Representative Positions

Recently, according to pharmaceutical representatives, Sanofi announced that it will split its diabetes division into two teams: one for oral medications and one for injectables.

The oral medication team will be responsible for two oral hypoglycemic agents, Amaryl (glimepiride tablets) and Nesina (alogliptin benzoate tablets), while the injectable medication team will be responsible for three injectables: Lantus (insulin glargine), Apidra (insulin glulisine), and Lyxumia (lixisenatide).

Pharmaceutical representatives analyzed that the upcoming launches of Toujeo, an upgraded version of Lantus, and Soliqua, a combination antidiabetic medication, may have prompted Sanofi to split its teams. Furthermore, given the significant differences in promotion and usage between oral medications and injectable products, as well as the distinct physician audiences they target, Sanofi decided to adjust job roles by dosage form to enhance product focus and achieve growth.

Recently, foreign pharmaceutical companies have undergone frequent changes.

In late October, the management of Pfizer Upjohn China announced adjustments to the business team structure and appointed several regional business heads. Wu Feng, the company’s General Manager for China, also stepped down a month earlier to pursue other career opportunities.

On October 23, Eli Lilly’s Global Diabetes Division will no longer oversee the business support functions for the United States, China, and Japan. Specifically, whereas the General Manager of Eli Lilly China previously reported directly to the President of the Global Diabetes Division, this role will subsequently be transferred under the purview of Eli Lilly’s International Operations Division.

It is understood that Eli Lilly’s International Division was established to adapt to changes in the global pharmaceutical market and healthcare policies, with a focus on regional markets. This enables local teams to formulate competitive operational strategies, facilitating Eli Lilly’s strategic shift from its core diabetes portfolio to a broader pipeline of innovative medicines pending launch in various regions.

In July, Novartis Oncology announced a new organizational structure, with HEMA and RARE completely separated into distinct lines. Novartis Oncology’s business in China is now divided into three teams: Hematologic Malignancies, Rare Diseases, and Solid Tumors.

▍Foreign-funded Enterprises, Adjustment

To some extent, structural adjustment by foreign pharmaceutical companies has become inevitable following the “4+7” volume-based procurement program—aimed at adapting to market changes and improving efficiency through organizational restructuring.

In the past, originator drugs from foreign pharmaceutical companies could still maintain a high premium in China even after patent expiration, a phenomenon known as “super-national treatment.” Consequently, the Chinese market failed to spontaneously develop a “patent cliff” akin to those in mature Western markets, placing immense pressure on medical insurance funds.

According to estimates by the China Pharmaceutical Industry Information Center, the market size of off-patent original brand-name drugs in China reached RMB 141.9 billion, accounting for approximately 14.23% of the total market for chemical and biological drugs. By 2025, an additional 48 imported chemical drug varieties will have their patents expire in China.

The patent cliff, a phenomenon observed globally, has consistently lagged in China. Comparative data on drug procurement prices between the United States and the UK’s NHS/MIMS has shown that, post-patent expiry, both originator and generic drugs are generally priced higher in China than in the US and UK. The emergence of the “4+7” volume-based procurement pilot has provided a level playing field for generics that have passed consistency evaluations and originator drugs, thereby intensifying competition and facilitating the substitution of originators by generics. As consistency evaluations advance and an increasing number of drug varieties participate in volume-based procurement, the “patent cliff” is accelerating its manifestation in China.

For instance, Eli Lilly’s pemetrexed disodium for injection entered the volume-based procurement at the winning bid price from the “4+7” pilot program following the second round of expansion in scope. Meanwhile, Sanofi’s clopidogrel truly implemented low-price competition in this round of expansion, thereby displacing domestic pharmaceutical companies.

In the second round of volume-based procurement, the participation of multiple originator drug companies exceeded market expectations, which to some extent reflected the stance of foreign pharmaceutical companies.

IQVIA has stated that, in response to the impact of volume-based procurement (VBP), foreign pharmaceutical companies should promptly conduct a comprehensive assessment of opportunities and risks in China and develop flexible response strategies. Companies with a technological advantage should adopt a competitive pricing strategy at a comparable level, which will inevitably tilt the market balance in their favor. For those without significant technological advantages, options such as controlling stakes, mergers and acquisitions, partnerships, or bundling products for sale can be considered to mitigate VBP-related risks.

For many multinational pharmaceutical companies, sales of off-patent legacy drugs are declining, while new drugs are performing strongly. This inevitably leads to a shift and reallocation of internal resources—and this is only the beginning.

Original Title:Renowned Pharmaceutical Company, Sales Position Changes