LUYE Pharma Development Strategy Research

After 2013, the development of Chinese pharmaceutical manufacturing slows down year by year; the whole industry entered a period of low-speeding growth. The speed of profit increase at present stage maintains higher than that of revenue increase with comparatively high industry profitability. However, with the implementation of laws and regulations by the government involving links of pharma qualification, medicine production, sales and circulation, the anticipated competition among pharmaceutical manufacturing will get fiercer; and the whole industry may confront with much pressure on profit reduction. In 2015, there was only an increase of 0.8% in sales income for LY Pharma. The sale of product line of tumor drug maintains a double-digit growth; for angiocarpy drug and other conventional drugs, the sale growth is weak; while it declines for digestive drugs.LY Pharma has achieved a great success in fields of merger and acquisition (M&A), as well as research and development in recent years. But as the industry rapid development decayed and the medical reform got into trouble, the countermeasures that LY Pharma took had no effect at all. It failed to acquire some pharma in 2015, and the adjustment of internal running team didn't work; the annual sales growth is less than 1%. Under such circumstance, the development of LY Pharma is explored and analyzed deeply in this paper on the basis of strategic analysis, strategic planning and strategy implementation, so as to make a development strategy programming which meets the company reality.In this paper, external factors are collected through platforms like National Bureau of Statics of the PRC, Chinese Food and Drug Administration and relevant websites of the industry as well as periodicals and magazines; critical internal factors are obtained by questionnaires and asking related principals for help; the key internal and external factors that affect the company development are analyzed by means of combining qualitative research, quantitative research, literature research and comparative study with all kinds of strategic management instruments, in order to make development strategy and measures for LY Pharma.According to the research in this paper, LY Pharma should follow the way of integrating endogenous growth with extended expansion, carry out horizontal acquisition meanwhile when developing new products, enrich product line and enlarge market occupancy in a short time; at the same time, in response to the complicated reality, it should also choose a cooperative partner from global perspective to cope with the increasing severer political fragmentation problem and conduct research on key technology which influences development of pharmaceutical industry all together.