| With the establishment of a national industrial strategic plan:"Made in China 2025" and the grand concept of "One Belt,One Road",innovation and internationalization have become the most concerned and popular topic in enterprises in China.Pharmaceutics is a typical international industry which is technology and capital intensive,therefore the government strongly encourages "innovation" and"internationalization" in pharmaceutical industry.From the perspective of the global pharmaceutics market,multinational pharmaceutical firms and coorperations in Europe,U.S.and Japan that take advantages of technology advances and financial strengths,basically monopolize the global drug market.Meanwhile the generic drug giants in India and Europe are firmly in control of the high-end generic drugs market in the globe.However,the overall scale of China’s pharmaceutical enterprises are small and lack of technological developments and global expansion strategies.The company’s exports are mainly focused on low-value raw materials and the preparations for exportation is insufficient.How should Chinese pharmaceutical companies,especially domestic leading pharmaceutical firms expand and strive in the global market?How can a domestic enterprise grow into a powerful and global leading multinational pharmaceutical coorperation?This article selects a domestic pharmaceutical leading enterprise:Hengrui Pharma as the case study object.The company mainly operates strategies such as globalization and corporative strategic management by using case analysis,literature research and comparative analysis as well as experience references to Hengrui Pharma.The driving force of Hengrui is that the company hopes to take advantage of the rapid development of the current European and American generic drug market and the industrial transformation of chemical pharmaceuticals to biopharmaceuticals.By implementing technological innovation and internationalization strategy,it hopes to become a global patented pharmaceutical company.The strategic goal of Hengrui’s internationalization is to achieve rapid and large-scale sales in major global markets.The path of Hengrui’s internationalization is currently mainly based on indirect exports,and will gradually implement direct exports later.In addition to the export model,it is supplemented by cooperation models such as patent licensing,technology transfer and strategic alliances.The strategic choice of Hengrui ’s internationalization is currently dominated by the globalization strategy,which production and R&D are mainly concentrated in China.According to the company’s consistently stable and conservative style of work,the company will not enter the international market through overseas establishments and international mergers and acquisitions in the short term.The implementation of Hengrui’s internationalization strategy is that it gets started,at the most tough goal market area first,the highest entry rate in the US market,followed by Europe and Japan,and finally emerging markets such as Asia,Africa and Latin America.The second is to tighten the company’s existing products to international declaration and registration export,and then focus on innovative products.Hengrui’s internationalization strategy is guaranteed by the fact that it has more than 2,000 R&D team and the most advanced R&D innovation platform in China.And it is supported by its very stable financial strategy and more than 10 percent R&D investment,which mainly relys on self-accumulation and development.For Hengrui’s international strategy,technological innovation is the most important core competitiveness.Hengrui is currently in the initial stage of internationalization,and it is in the position of the fourth group that is relatively backward among the international strategic groups.However,Hengrui is backed by the world’s second largest domestic market,relying on strong technology research and development and technological innovation capabilities,rich product pipelines,and the company’s management to develop and implement a clear and stable international strategy.In the next 10 year it is expected that Hengrui will surpass all of the third group of Indian pharmaceutical companies,and its annual sales revenue is expected to reach 20 billion US dollars,its market value of stock is expected to exceed 100 billion US dollars.Second,international strategic talent is the key,especially for corporate executives.Hengrui has leading figures in R&D,production and domestic sales,but there are no leading figures in international business and international capital operations.Hengrui should recruit and cultivate leading figures in international business and international capital operations as soon as possible,which will promote the rapid growth of the company’s international business.All in all,the starting point of Hengrui’s globalization strategy is sufficiently high.At present,the main products that Hengrui produces are high-end first-class generic drugs.Besides the steady growth of domestic sales revenue,its ability in Research&Development is also the top notch in China.The objective of Hengrui’s globalization is clear and ambitious.By formulating and implementing globalization strategy that brings a stable growth and expansion,Hengrui adopts a financial strategy based on its own accounting accumulation which is revenue-oriented along with a solid R&D management which focuses on high-end imitations.After that,Hengrui’s goal is to enter the global market after accumulating strong financial basics and advanced technological fundamentals in the domestic market.Hengrui acquired a huge success after occupied a quite amount of domestic market share and built reputable images in the pharmaceutical industry.Hengrui’s globalization strategy and experiences are good references which illustrate the significance of domestic pharmaceutical companies’expansions in the global market. |
