Transcript Document

Ebsa pharma – your turnkey solution to the Chinese market
Your participation in a Potential and Ever-Growing
Medical & Pharmaceutical Market in China
Company presentation to Max Zeller Söhne AG
January 2013
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Contents
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Services, medical and sales network
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Key figures of Chinese healthcare sector
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Features of pharmaceutical market in China
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Successful case of market introduction and sales
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Services, medical and sales network
Services to European Pharmaceutical Lab
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Drug and Medical device registration with SFDA
 Planning
 Dossier preparation
 Translation(s)
 Clinical trial(s)
 IDL registration – Import drug license (Class III, IIa, IIb medical device license)
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Drug and medical device marketing and distribution in China
 Product introduction
 Distribution
 Terminal sales
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Services, medical and sales network
Organizational Chart
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Services, medical and sales network
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Services, medical and sales network
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Services, medical and sales network
Ebsa pharma’s success is driven by 138 sales representatives and 5 marketing specialists.
Our business geographical market area stretches over 14 provinces of which 8 are the
most important in relation to current and expected future significant developments.
Heilongjiang
Jilin
Liaoning
Xinjiang
Inner
Mongolia
Qinghai
Ningxia
Gansu
Shanxi
Tibet
Beijing
Hebei
Shanxi
Tianjin
Shandong
g
Jiangsu
Henan
Anhui
Hubei
SichuanChongqing
Jiangxi
Shanghai
Zhejiang
Hunan
Fujian
Guizhou
Ebsa pharma ’s presence
in key and sub-prime markets
• Beijing
• Guangdong (Dongguan, Guangzhou, Shenzhen)
• Henan (Luoyang, Zhengzhou)
• Hunan
• Jiangsu (Nanjing, Suzhou)
• Shandong (Jinan, Qingdao, Yantai)
• Shanghai
• Zhejiang (Hangzhou, Ningbo)
• Fujian (Fuzhou, Xiamen)
• Guangxi (Guiloin, Nanning, Liuzhou)
• Hubei
• Shanxi
• Sichuan
• Tianjin
Taiwan
Yunnan
Guangxi Guangdong
Hainan
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Key figures of Chinese healthcare sector
Total health expenditure in China witnessed steady growth in the past few years
• 1996-2009 (US$ 1 bn)
CAGR=8%
125
CAGR=11%
117
110
CAGR=16%
96
102
86
76
57
62
68
28
1995
2000
2001
2002
2003
2004E 2005E 2006E 2007E 2008E 2009E
Source: According to official estimates, figures from China Statistical Yearbook, Espicom Business Intelligence and
other institutions are more upbeat; as a whole, Chinese market presented strong growth in the past few years and
based on good macroeconomic situation, improving personal ability to pay and enhancing individual’s attention on
health, the growth will continue.
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Key figures of Chinese healthcare sector
Estimated by IMS, the pharmaceutical industry will grow significantly over the next 10
years, leading China into the second largest global pharmaceutical market behind USA.
China’s domestic growth and global market size between 2001-2020.
Increase by 17% between 2001-2010 and by 15.5% between 2011-2020
USA
USA
USA
Japan
Japan
China
Germany
Germany
Japan
France
France
UK
Italy
Italy
UK
Spain
China
Spain
Canada
Mexico
Canada
China
Turkey
Source: IMS Health
•
Pharmaceutical market in China will
amount to 800 bn Yuan in 2013; it
will amount to 2-3 trillion Yuan in
2020 to rank second in the world.
•
Key driving factors:
 Continuous economic growth
and awareness of population’s
health consciousness;
 Added investment in health
care reform favours the
growth potential;
 Stake of aging population
increases.
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Features of pharmaceutical market in China
At present, hospitals take the lead in medical sales while retail pharmacies tend to
increase their market share in future. However, imported and high priced drugs will
continue to be mainly distributed in large-scale hospitals.
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Changes in market shares of pharmaceutical sales in terminal market
5%
8%
13%
The percentage of drug consumption in
medical institutions will decline as a result
of various factors:
20%
30%
55%
95%
92%
87%
Share of
retail
channel
•
The policies about the separation of
prescribing and dispensing have been
gradually carried out.
•
The phenomenon of “patients buy medicine
in pharmacy with prescription”, namely,
policies about separated management of
prescription and OTC drug, will realize the
separation of drugs in hospital and
pharmacy.
•
The emerging of medical care designated
pharmacy solves the worries of consumers
to buy medicine in pharmacy.
•
Pharmacy is allowed to diversify operations,
so the investment in pharmacies increase to
a certain extent.
80%
70%
45%
Share of
hospital
channel
1980-1989 1990-1995 1996-2000 2001-2003 2004-2015 After 2015
(Forecast) (Forecast)
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Source: URC market survey
Features of pharmaceutical market in China
Hospitals are the largest terminal clients of medical consumption and remain constant
in numbers for the past few years. In addition, hospitals of upper class, witnessed
small differences in numbers.
Changes on number of major medical institutions (10,000]
(During 2008-2009)
(During 2005-2009)
Clinic
222
Changes on number of hospitals of different classes (10,000)
237.2
244.3
212.9
其他
Others
8,299
9,420
一级
Grade
I
2674
2479
Grade
II
二级
5198
4903
三级
Grade
III
977
962
2008
2009
198.3
Health centre
50.3
49.8
48.6
46
45.2
Hospital
16.7
16.7
16.8
17.8
17.8
2005
2006
2007
2008
2009
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Source: Data from Ministry of Health; Roland Berger analysis
Features of pharmaceutical market in China
It is seen from pharmaceutical consumption that the Grade III hospital exceeds the
Grade II hospital by four times. However, the hospital quantity of the former is about
one fifth of the later, therefore they are similar in pharmaceutical consumption.
Annual pharmaceutical consumption of a hospital in various grades
[ten thousand Yuan]
60,605
Annual total pharmaceutical consumption of hospital in all grades
[hundred million Yuan]
5,830
5,849
2,230
11,929
2,367
Grade III
Grade II
Inferior to grade II
Grade III
Grade II
Inferior to grade II
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Source: Data from Ministry of Health
Features of pharmaceutical market in China
Medical markets in China are mainly concentrated in coastal and developed cities.
15%
Beijing
Shanghai
30%
14%
Guangzhou
Hangzhou
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Nanjing
9%
9%
13%
11%
Qingdao, Jinan
Others
Source: The data is from commercial delivery condition of a large-scale multinational company. It is reflected hereby that
hospitals are unreasonable in sales status. However, it can be judged that it is reasonable to have medical market
especially the high-end medical market in developed cities and coastal areas.
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Features of pharmaceutical market in China
It takes more than 5 years in Chinese market for a product to become matured
from its launch.
Example
Schematic diagram: life cycle curve
of pharmaceuticals
Example: compound danshen dripping
pills reaches to mature stage by 9 years.
CAGR29
%
Market mature period
CAGR58
%
Swift growth period
>8.2 hundred million
CAGR138
%
Market introduction
period
1.5 hundred million
Duration
• 1-2 Years
• Great market investment
force
Market
investment • Channel developing
• Medicare public relation
Market
share
• Increase market share
• About 4 years
• 5-10 years
• Terminal excitation
• Pay attention to maintenance of
customer loyalty index
• Consider introduction of new
• Channel gathering
drugs
• Deep distribution
• Take share of opponents • Maintain market share
1. 44 million
94’
95’
98’
00’
04’
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Successful case of market introduction and sales
Successful case:
Nerve growth factor of rat (NGF – brand 恩经复） ---- CNS
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Indication: peripheral nerve injury caused by poisoning of normal hexane
Product medicament form and specification: 2000 units, powder-injection
Product price: 168 Yuan/piece
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Product features ：
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Product positioning:
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New compound, national category I new drug, biological agent
Indication is narrow, therefore it is impossible to form sale scale in indication
popularization
Self-paying drug and not entering into NDRL
The product is less in curative effect material and low in doctor cognitive degree
There is only one enterprise manufacturing like products - Wuhan Hitecin
Pharmaceutical Co., Ltd. with all-round management mode adopted.
The only drug in promoting orientated growth of injured neurocyte
Sale mode:
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Control terminal specialization popularization mode
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Successful case of market introduction and sales
Product research and product positioning objective market: marketing starting
point is to learn product
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Product Research:
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It is reported in literature that the product can promote orientated growth of neurocyte in
the laboratory
The product is large in molecular weight. Although there is laboratory report for the product
in penetrating blood-brain barrier. However, we found out through deep interviewing with
doctors that most of them think that the product is difficult in penetrating blood-brain
barrier.
It is the initial launching product, therefore there is less clinical data in promoting the
product
There is only one like product with central nerve restoration of nerve internal medicine as
main function
Product positioning and objective market:
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The only drug in promoting orientated growth of injured neurocyte
Main objective hospitals: Grade A class three large-scale hospital
Main departments for product:
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Paediatrics
Orthopaedics
Rehabilitation Department
Main diseases cured by the product
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Peripheral nerve injury (including peripheral nerve injury caused by trauma and peripheral nerve injury
intercurrent with other disease)
Newborn infant brain paralysis (newborn infant blood-brain barrier is not mature and can be
penetrated by macromolecular substance)
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Successful case of market introduction and sales
Marketing Execution：
Product conception spread and sales promotion plan of market department based
on product research and product strategy
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Product conception spread plan and execution:
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Establish market budget and decomposition
Seek and confirm opinion leader from product spread industry
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Confirm product conception spread items and fabricate related lecture material
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Preparation of slide
Preparation of advertisement leaf
Establish market produce conception spread plan and implement the plan
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Seek and confirm nationwide expert lecturers and communicate with them
Seek and confirm regional expert lecturers and communicate with them
Nationwide conference plan: professional meeting plan in sponsoring related institutes; nationwide
tour lecture plan
Regional conference plan: annual meeting sponsor plan of related institutes from leading markets;
regional tour lecture plan
Sales representative promotion tool and brand prompt preparation based on
product positioning
Sales team product training plan and execution
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Successful case of market introduction and sales
Marketing execution:
Product conception spread and sales promotion plan of market department based
on product research and product strategy
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Establishing sales plan based on market strategy and execute the plan:
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Confirmation and decomposition of sale index
Confirmation and decomposition of sales budget
Establishment and execution of working standard for sales manager/representative
Confirm list of objective hospital and hospital development plan and execution
Confirm objective doctor standard and objective doctor development plan and execution
Working content training of sales representative
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Sales promotion plan and execution
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Slide lecture training
Training of product leaf use
Training of face-to-face visiting
Establishment and execution of round-table conference and department slide lecture plan
Regional conference plan: annual meeting sponsor plan of related institutes from leading markets;
regional tour lecture plan
Establishment and transmission of sale team incentive plan based on marketing
strategy
Tracing of sale team action: good result can be obtained only after good plan is
performed
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Successful case of market introduction and sales
Sales Curve for Rat Nerve Growth Factor
80
70
70
66
65
60
60
50
40
40
Unit: piece
30
Unit: piece
24
20
12
10
0
03
04
05
06
07
08
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Remark :
The product was introduced in 2004 and swift growth was maintained in the consecutive 3 years.
It maintains the first market share in four like products launched in 2006.
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Thank you
Look forward ---- Just do it !
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Screen and finalize drug or medical device
We do the market potential and forecast
We sign registration agreement
We sign distribution agreement after getting SFDA approval
We enter the market and sell
We grow together
We succeed together!
Contact: Georges Zhang
[email protected]
+86 139 01 63 45 09
www.ebsapharma.com
Shanghai sales center: Floor 1, Bldg G, Shanghai Info Park, 1188 WanRong Road
Factory:
No. 380 BaLing East Road, Yueyang City, HuNan province
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