Study On The Development Strategy Of NN Pharmaceutical Company In China

The pharmaceutical industry has always been concerned about the industry,known as "never declining sunrise industry".In many foreign countries the pharmaceutical industry has become a very important part of the social security system,and citizens can enjoy basic medical benefits free of charge.China is still in the stage of development in pharmaceutical industry.With the introduction of national policies,the public is paying more and more attention to the pharmaceutical products and health industry.The medical industry is developing rapidly in our country,and has become an important component of the national economy.In recent years,with the continuous development of social economy,the national medical insurance department has gradually carried out various reform measures,which have brought huge challenges to pharmaceutical enterprises and medical device enterprises.The most significant policy change since 2019 has been the policy of volumebased procurement of drug(VBP).Affected by the dramatic decline in drug prices,both domestic pharmaceutical enterprises and multinational pharmaceutical companies are facing the challenge of the change of market competition pattern and the significant decline in the main business income and net profit.Under the premise of continuous changes in the macro environment and industry environment,it is particularly important for various pharmaceutical enterprises to better achieve the balance between their social responsibilities,corporate interests and patients’ interests.This requires all the enterprises to choose the right development strategies that are suitable for the current external environment,policy changes and the company’s current situation in order to achieve the comprehensive goals of the enterprises.NN Pharmaceutical Company has been the market leader in diabetes both globally and in China all the time.About 60% of diabetics in China are treated with the products of NN Pharmaceutical Company.Therefore,it has become the most affected enterprise in the VBP of insulin carried out at the end of July 2021.The average price of most products has been reduced by 40%.According to the rules of the VBP,the price reduction is not competitive with that of domestic pharmaceutical companies,and the final sales volume has also been significantly reduced,resulting in a sharp decline in profit as well as sales losses.It is only by making the right corporate development strategy that NN Pharmaceutical Company can continue to achieve the balance between its social responsibility,patients’ interests,corporate interests and employees’ interests.NN Pharmaceutical Company’s marketed products cover the treatment of diabetes,obesity,hemophilia,growth and development disorders and other rare diseases.During the past25 years,NN Pharmaceutical Company has been focusing on the marketing of endocrine products in China.The weight loss indication of Smeiglutide injection is expected to be approved for market by the end of 2023.The distribution of products in other disease areas is relatively slow.Through the analysis of internal environment and core competitiveness,and the analyzes of the influence of external factors from the macro environment,industry environment and competitive environment of the enterprise,and uses Porter’s five forces model to analyze the industry environment and competitive environment of the enterprise.Based on the influence factors of internal and external environment,SWOT analysis is used to analyze the internal strengths,weaknesses and external opportunities and challenges faced by NN pharmaceutical company,and then draw a conclusion that NN Pharmaceutical Company should choose the differentiation strategy,diversification strategy and cooperation strategy.At the same time put forward the corresponding safeguard measures,including financial support,human resources support,technical support and system support.At present,under the situation of VBP,the number of literature or issues on the development strategy of pharmaceutical enterprises is relatively small,especially for multinational pharmaceutical enterprises.This issue takes multinational companies as the research object,I hope it will be of some reference value to Chinese local enterprises and how to enhance the competitiveness of domestic enterprises in the future.