Hengrui Halts Most Generic Development After Prices Free Fall In China

China’s favorite domestic drug maker seems to have a warning for the industry - innovate or halt. After the recent round of “4+7” centralized procurement saw some off-patent drugs priced at pennies, the leading Chinese firm Hengrui has decided to halve its generics portfolio to focus on innovative new drugs.

HENGRUI REPORTEDLY HALTs MOST GENERICS DEVELOPMENT AFTER HUGE PRICE FALL • Source: Scrip

“We can use our R&D money in better ways,” declared Piaoyang Sun, the CEO and long-reigning chairman of Jiangsu Hengrui Medicine Co. Ltd. and baron of China's domestic drug manufacturing sector.

Speaking at an industry conference, Sun said the time for generics is nearing its end and that companies must now focus on innovation to survive. “The opportunities for generics to...

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