Under The New Situation Of Multinational Pharmaceutical Enterprises In China's Strategic Adjustment

The pharmaceutical industry has become one of the most importantindustries in21st century, with great scientific significance andcommercial value. Along with China’s economic take-off in the new century,its pharmaceutical industry has reported the fastest growth in the worldpharmaceutical markets. Facing great growth challenges in leading7pharmaceutical markets in the world, multinational pharmaceuticalcompanies (MNCs) have switched their strategic focus to China, the mostpromising emerging market in the world.Footprint of MNCs in China can be traced back to early1980s when Chinastarted the opening-up policy. During the past30years, a growing numberof MNCs have established China their strategic focus of global expansion.After30years’ development, MNCs take up approximately1/3of theoverall pharmaceutical market in China. The publication of China’s newmedical reform policy and the outline of the "12th Five-Year Plan" bringnew opportunities as well as challenges to the industry. Compulsory pricecut after National Reimbursement Drug List (NRDL) listing and2012PatentCliff are two critical issues MNCs are facing. What should MNCs do tosustain leading position in the changing dynamics? What is the possiblewin-win solution to develop the company while grow the wholepharmaceutical industry? How could MNCs benefit more patients? This papersuggests some strategic imperatives for the industry to act on.