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VBP Pains Swell Prompting New China Strategy, Local Innovation Focus

Drug Makers Tap Into Local Innovation

 
• By Brian Yang

As the rollout of volume-based procurement to more products brings more pain, drug makers are exploring different China strategies. One indicator, though, is clear - local innovation and distribution can’t be ignored anymore.

China slowdown
China VBP pressure prompts big pharma to tap into local innovation in a strategy shift • Source: Shutterstock

During the 23 January quarterly earnings call, the largest drug and device conglomerate Johnson & Johnson signaled that the impact of China’s volume-based procurement was hitting hard.

During the call, J&J CEO Joaquin Duato told investors, “I mean, you were seeing Asia-Pacific, in the US and EMEA it [revenue growth] was driven by the procedure recovery, but also by the new product performance and

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