Business Strategy Research Of Pharmaceutical R&D Oriented Enterprise

Since pharmaceutical industry is currently one of the most important fields of high-tech development in the world, Chinese government also supports pharmaceutical industry vigorously and it supports pharmaceutical industry to enhance development of new medicines, which is also favorable for defensive system of Chinese public health. Featuring high technology content and high added value, Chinese pharmaceutical industry is of huge potential because China is a developing country owning a population of over 1.3 billion. Therefore, many transnational pharmaceutical companies have rushed to China because of such prosperous vision; and these companies have caused great impact on Chinese talents and domestic pharmaceutical enterprises. Confronted with such transnational enterprises with powerful capital and strength, Chinese domestic pharmaceutical enterprises have to constantly strive to become stronger, and dare to struggle, and they need to explore a road with their own characteristics. However, many Chinese R&D pharmaceutical enterprises are now in very embarrassing positions in their development– they want to develop some new medicines that the transnational companies haven't succeeded in developing and are protected by international patent, but they are short of sufficient capital support, and the developing cycle is too long; they also have the difficulty of weak domestic fundamental research. But, if they only keep on developing imitating types, most pharmaceutical enterprises are now producing with petty profit or even no profit due to the fierce market competition and increasingly meager returns. Affected by several factors such as①China has revised Patent Law and enhances intellectual property rights protection,②transnational pharmaceutical enterprises now have paid more attention to patent protection of new medicine in China.,③imitating types with strong market competence are becoming less, it will be more and more difficult for Chinese pharmaceutical enterprises to focus on researching and producing imitating medicine; and domestic competition will get more and more horrifying.As the first pharmaceutical research unit directly subordinated to national ministry and administration level set up in China, TY Institute of Pharmaceutical Research (hereinafter referred to as TY)has gone through over a half century. And now it has become the leading large high-tech pharmaceutical enterprise focusing on medicine research, and a powerful paragon in pharmaceutical industry. This paper has mainly researched TY on how it combined the theories with practice in the past 50 years; and how it established and implemented varied enterprise strategies to improve core competence such as strengthening research and development of innovative medicine owning independent intellectual property rights and industrialization combination, and undertaking outsourcing business for new medicine to realize internationalization. Furthermore, this paper will discuss how TY maintains the leading position among pharmaceutical industry of medicine research type that is full of masters, and share such precious experience with you all. I hope this paper can contribute to Chinese pharmaceutical industry as reference.