BMS Divests Major Assets in China, Novo Nordisk and Merck Announce Layoffs: Are Multinational Pharma Giants Undergoing Collective Transformation?

Sep 15, 2025 18:57 CST Updated 18:57

Xian Janssen

Pharmaceutical R&D and Manufacturer

Strategic adjustments by multinational pharmaceutical companies in China are still ongoing.

Recently, industry news revealed that Bristol-Myers Squibb (BMS) Announced that it has signed an agreement toIts joint venture in China, Shanghai Squibb Pharmaceutical Co., Ltd. (SASS, hereinafter referred to asShanghai Squibb) held in60%Equity, and5Products exclusively manufactured for the China mainland market, includingBaraclude(Baraclude),Bufferin(Bufferin),Theragran(Shierkang),Monopril(Monopril) andVelosef(Panjet), sold toHillhouseAn affiliate of the investment group (Hillhouse Capital).

This means that the recent search by Shanghai Squibb for a takeover party has officially come to an end.BMSIn an internal email, it was stated that the asset divestiture in this plan directly reflects its continuously evolving network strategy.“Selling to Hillhouse Capital will enableBMSCapable of focusing internal resources on the most critical growth areas,At the same time, leverage experienced and trustworthy external partners in regions with localized manufacturing and market advantages.。”BMSExpected，The transaction will be completed in2026Completed at the beginning of the year, but the specific amount was not disclosed.

Regarding this transaction, the reporter of the "Pharmaceutical Economy News" sought confirmation from BMS, but there was no response as of the time of publication.

"One of the 'Old Five' Leaves Again"

BMSThe official website of China shows that it has four legal entities in China.One of them is Shanghai Squibb.Shanghai SquibbFounded in1982Year10Month14Day, by the United StatesBMSJointly invested and established with Shanghai Pharmaceutical (Group) Co., Ltd. and China National Pharmaceutical Foreign Trade Corporation, it is the first Sino-US joint venture pharmaceutical enterprise established after China's reform and opening up., in1985Year10Officially put into production in the month.

In the last century80In the early years, Shanghai Squibb (a Sino-US joint venture), Tianjin Otsuka (a Sino-Japanese joint venture), Wuxi Huari (a Sino-Swiss joint venture), Xian Janssen (a Sino-Belgian joint venture), and Suzhou Capsule (a Sino-US joint venture) became China's first batch of pharmaceutical joint ventures, known in the industry as the "Old Five." At that time, these joint venture pharmaceutical companies...Not only brought advanced medicines, but also introducedTalent cultivation, enterprise management,New models such as academic promotion have played an important role in promoting the development of China's pharmaceuticals industry.

Through Shanghai Squibb,BMSSuccessivelyLaunched nearly in China30Varieties, coveringPrescription therapeutic drugs such as cardiovascular, metabolic, and antibiotic medications, as well as over-the-counter drugs like antipyretic analgesics, cold and cough remedies, and multivitamins.In this sale5Among the products, multivitamin tablets (Schirkang) and acetaminophen (Bafuning) are well-known to the public.OTCProducts; while Entecavir (Baraclude), Cefradine (Cefradine),Fosinopril Sodium(Monopril) is a national procurement variety that has seen significant price reductions.

It is not difficult to see,BMSThis sale of Shanghai Squibb equity is not only a precise strategic divestiture but also a highly rational decision that aligns with its global strategy.

The financial report for the first half of this year shows,BMSCumulative revenue is234.70Billion USD, compared to the same period last year240.66Billion USD, year-on-year decrease2.48%。BMSStated directly in the financial report,Performance DeclineTheThe reason is，MainMature Product PortfolioThe impact of intensified competition in generic drugs and adjustments to U.S. health insurance policies.

Currently,BMSDivide the products into growth products (Growth Products) and mature products (Legacy Products) Two major categories. In the first half of this year, the revenue from growth products was121.59Billion USD, year-on-year growth17%, mainly benefiting from Nivolumab (Opdivo，ODrug), Luspatercept (Reblozyl), Mafkete (Camzyos) andTiotropium Bromide and Clidinium Bromide (Cobenfy）Core products such asSalesThe strong drive.

Specifically, in oncology products, thanks to its key position in immuno-oncology treatment and strong performance in combination therapies,OMedicineThe first half of this yearPerformanceMaintain steady growth, revenue48.24Billion USD, year-on-year growth8%. It is worth mentioning that,OSubcutaneous injection formulation of the drugStart to exert effort,Strong growth in the second quarter of this year, with a total revenue generated in the first half of the year.3800Million US dollars.

In the cardiovascular field, apixaban (Eliquis) As a key drug for treating atrial fibrillation and venous thromboembolism, continueSteady growth, achieved revenue in the first half of this year72.45Billion USD, year-on-year growth2%; The world's first cardiac myosin inhibitor, Mavacamten, sees surging demand in the U.S. for obstructive hypertrophic cardiomyopathy,Global Revenue4.19Billion USD, a significant increase88%。

At the same time,BMSAlsoBetting on the next blockbuster. This year6Month,BMSAndBioNTechReach an agreement to co-develop and co-commercialize globallyBioNTechResearch-based bispecific antibody acquired after the acquisition of Promab BiotechnologiesBNT327, for the treatment of various solid tumors, with a total transaction value as high as111Billion US dollars.

It is generally believed in the industry that,BMSThe sale of Shanghai Squibb's equity is a landmark event in multinational pharmaceutical companies' "disentanglement" in China:“Break”It is the reliance on past successful models,“She”is a non-core profit burden,“Depart”The old joint venture model. The core logic behind it is to give up in the midst of policy changes and industry reshuffling."Large and comprehensive" to "high and precise," focusing resources on the most core innovative capabilities.，To meet the future competition in China's pharmaceutical market, the world's second largest.

This is not onlyBMSA Choice Represents the End of an Era and the Beginning of a New One.

Pharmaceutical Giants Take the Initiative to Seek Change

BMSThe action is a microcosm of recent strategy adjustments in China by multinational pharmaceutical companies such as Novo Nordisk, Merck, and Sanofi.，This marks a milestone for multinational pharmaceutical companies inHuaThe strategy has entered a new phase of structural adjustment.。

9Month10Recently, Novo Nordisk announcedWhole CompanyTransformation, Aiming to Streamline Organizational Structure and Improve Decision-Making Speed,ReconfigurationResources, to promote the company's growth in the diabetes and obesity fields.Currently,Novo Nordisk Existing78400A Position。As part of the transformation,Novo NordiskPlans to cut about globally9000Person，Among them, Denmark is expected to cut about5000Person.

In recent years，Novo NordiskRapid Expansion，GuideToTissue Complexity and CostIncrease，This transformation aims to address thisQuestion，Increase investment in scientific research, commercial capabilities, and capacity enhancement. Novo Nordisk clarifies，This comprehensive layoff includes regional staff and headquarters functional departments, and is expected to2026By the end of the year, the total annual savings will reach approximately80Million Danish kroner. The saved funds will be used for growth opportunities in the diabetes and obesity fields, including commercial execution plans and R&D projects.

Novo NordiskTwo days after the global announcement was released,Novo NordiskChinaFollow up quickly. Leaked internal emails show that Novo Nordisk Greater China Region, in line with the global plan, will also participate in this transformation initiative.In the next two months，Superior LeaderWill cooperate withChinese EmployeesFurther CommunicationRelevant Matters。

Not coincidentally, Merck also initiated a large-scale layoff plan.This Year7In the month, Merck disclosed its dismal performance for the first half of the year: total revenue313Billion USD, a year-on-year decrease2%; Pharmaceutical Business Revenue277Billion USD, a year-on-year decline3%; Revenue in China is approximately11Billion USD, a year-on-year plunge70%。InDisclosure2025On the same day as the semi-annual report, Merck announced the launch of a“In2027Save annually by the end of the year30Billion-dollar cost”The comprehensive reduction plan.

As part of the plan, Merck has simultaneously approved a layoff plan, which is expected to cut some administrative, sales, and R&D positions., approximately6000employees, accounting for approximately8%. The layoff plan will save Shandong approximately17Billion USD, expected2027It will be substantially fulfilled before the end of the year. MerckDisclose，TodayThe Second Quarter of the Year,CompanyAlready inGAAP（US GAAP）Included in the performance are items related to the layoff plan.6.49USD billion in costs。

Facing the Chinese MarketGrowth Stall, Merck in China This Year3MonthTurn OnChina RegionArchitectural Adjustment. In this round of adjustment, Merck newly establishedEntrepreneur Division (BU), incorporating many mature products in the fields of infection, tumors, and diabetes that have already been included in the national procurement.

It is reported that this business unit will be led by Shi Jiawei, the former head of Merck China's diabetes division, and will adopt a unique entrepreneurial model.Operations, integrating mature products in the fields of oncology, in-hospital specialty medicine, and diabetes,“Become a highly cohesive whole”According to reports, through data insights, strategic layout in hospital and retail channels, and value-driven customer engagement, MSD hopes to leverage this model to harness the synergy across its product lines.Drive sustainable business growth.

Merck、Large-scale layoffs by multinational pharmaceutical giants such as Novo Nordisk in recent times reflect that the global pharmaceutical industry is undergoing a profound transformation.StructureAdjustment. This is not simply a case of poor business management, but rather an industry's proactive response to multiple pressures such as patent expiration, increased market competition, and shifts in strategic focus.，The industry is undergoing a shift from relying on traditional blockbuster drugs to a model dependent on continuous innovative breakthroughs, as well as changes in the global market competitive landscape.Reshape.

This isPharmaceuticalGiantA helpless response to challenges, as well as an active layout for the future.TheyCorrectThrough“Slimming”Achieve“Strengthening the Body”, in the hope of reaching a broader audience.Stay ahead in the fierce future competition.For the entire industry and patients, in the short termLabor pains mayBringMore Efficient Innovation, andMore Focused Treatment Solutions。