Editor's note: The health industry has become a global hot spot. Some people even say that this industry will be the peak of global wealth after the Internet industry. Indeed, various factors indicate that the health industry is facing broad development prospects.
While this industry is being developed, the industry is also undergoing adjustments in several directions. The integration of various innovations and technologies constantly impacts our imagination. However, as an important development feature of this industry, many areas of this industry are moving towards concentration. Therefore, the leading power of the industry is increasingly concentrated in the hands of these minorities. Recently, the "Economic Observer" launched an exclusive column "Top 100 in China's Big Health Industry", and a special page reported on Fosun Pharma's "new generation" story. In this issue, the editor shares the full text with readers~
"Economic Observer" cross-page report
Wu Yifang, a typical Chinese-style middle-aged man, plainly dressed, of medium build, slightly blessed, exuding an air of open-mindedness and persistence. His former colleague said, "He is a serious person." He said that he is now an aerial trapeze, and he is working on Guo Guangchang's vision, stage by stage, according to the small peaks...
And 20 days ago, Fosun Pharma released its 2017 first quarter performance report, realizing operating income of RMB 3.880 billion, an increase of 20.29% over the same period of the previous year...
Just a month ago, on March 28, Fosun International released its 2016 results announcement in Hong Kong. Chen Qiyu, Guo Guangchang and several other colleagues were interviewed by reporters at the Four Seasons Hotel in Hong Kong.
Today is different from previous years. In addition to serving as chairman of Fosun Pharma, Chen Qiyu has become the co-president of Fosun Group. Also interviewed by the media was Xu Xiaoliang, another new co-president of Fosun. Regarding Fosun Group's attendance lineup this year, outsiders commented that "the new generation of management has been replaced", and a different Fosun may appear next.
The speculation about a different Fosun new generation comes from a partnership system newly promoted by Guo Guangchang in recent years.
Fosun, a warrior like a cloud, has been promoting a new system in the past two years-the partner system. Guo Guangchang believes that without talent, everything is empty talk, and people in important positions should stand in the position of chairman to think about problems. More importantly, a company is like a team that constantly wins, and some players always need to rest and have to form a mechanism of entry and exit, and substitution.
At the same time, in the conference room of Fosun Pharma’s office building in Caohejing Development Zone, Shanghai, Wu Yifang, President and CEO of Fosun Pharma, was also talking to reporters about Fosun Pharma’s “achievements” and the future of Fosun Pharma under the “big health” landscape. .
In 2016, Fosun Pharma Group achieved operating income of 14.629 billion yuan, an increase of 16.02% over the previous year.
Regarding the promotion of Chen Qiyu, some Fosun insiders said that this may be a signal from Fosun Group to increase the overall health and medical care.
On the day Fosun released its annual report, Guo Guangchang revealed in a letter to shareholders its plans for the future of great health. He stated that if Fosun Pharma is to become a Huawei in the global health sector, it must be vigorous in gene sequencing and innovative medicine. Accelerate breakthroughs in medical services such as, precision medicine and artificial intelligence.
In the past 2016, Fosun Pharma overfulfilled its tasks in R&D and pharmaceuticals, medical diagnosis, medical equipment, and medical services. According to Guo Guangchang’s "Big Health" layout plan, Wu Yifang analyzed that Fosun Pharma will continue to increase investment in innovation in the future, and make great efforts in drug R&D and manufacturing, medical devices and medical diagnosis, and medical services to accelerate innovation and internationalization. development of. Strive for a deeper performance in the next stage of Fosun Pharma's development.
It may not be difficult to benchmark Huawei
Looking at the growth history of Fosun Pharma, the key factor in its growth is inseparable from two words-mergers and acquisitions. Chen Qiyu described it as extensional expansion, which is one of the means for the rapid operation and development of the pharmaceutical industry. In fact, after each merger and acquisition, Fosun has also completed a reserve of elite talents and cultivated a large number of talents.
Including Wu Yifang, the current President and CEO of Fosun Pharma, it can also be said to be the talents cultivated by Fosun Pharma after the acquisition of Wanbang Pharmaceutical in the early 21st century.
Wu Yifang said that compared with before, there is a huge difference in the energy and physical strength that needs to be invested in work. He is now a trapeze. What made him redefine himself is that after entering the headquarters of Fosun Pharma, the breadth, depth, and height of his knowledge far exceeded those before. He felt that he was unable to compare with the current state of life.
Wu Yifang, a professional background in international trade. In 1987, when the United Nations officially announced that the world's population reached 5 billion, he had just walked out of campus and came to Xuzhou Biochemical Pharmaceutical Factory (the predecessor of Jiangsu Wanbang Biochemical Pharmaceutical Co., Ltd.) to work as a technician. He did not expect that in the future, he would be at the helm of the big ship of Wanbang Medicine. He has been in charge of technology for 6 years, and has been in the market for 16 years. He has been promoted from technician to chairman.
In 2004, after Fosun Pharma’s holdings, Wu Yifang was said to be the vice president of Wanbang Pharmaceutical in charge of sales. Once, he chatted with Chen Qiyu, then chairman of Fosun Pharma Group, and Chen Qiyu told him that he should pay attention to the change of roles and move from problem solving to discovery. opportunity.
Chen Qiyu developed Wu Yifang's ideas, and Wu Yifang was promoted from general manager to chairman. The role change brought higher requirements for her own quality. Wu Yifang successively entered the EMBA of St. Joseph University in the United States and the general manager class of China Europe Business School. In 2010, I participated in the SEPC class jointly organized by China Europe, Tsinghua, and Harvard to complete the systematic combing of knowledge. These learning experiences gave him the opportunity to study first-class international companies and domestic first-class pharmaceutical companies, and he has a certain understanding of the advantages of benchmarking companies and the problems of Wanbang Pharmaceutical itself.
Since 2007, under the promotion of the management of Fosun Pharma and Wanbang Pharma, Wanbang Pharma has successively successfully integrated Kaimao Bio, Wanbang Fulin, Zhaohui Pharmaceutical, Jiangsu Huanghe Pharmaceutical, etc., which were acquired by Fosun Pharma. Wanbang Pharmaceutical has quickly become a compound pharmaceutical company with cutting-edge products such as endocrinology, cardiovascular, tumor, and raw materials.
In 2016, Wu Yifang served as President and CEO of Fosun Pharma.
According to Wu Yifang’s old colleague, a person from Wanbang Pharmaceutical, Wu Yifang is a more persistent person with strong learning ability. In the second year after entering the company, the company introduced new equipment from abroad. He did not understand the full English manual, so he often went to Xinhua. Bookstore "rubs" on books.
Overweight innovation, "medicine taste" is stronger
Mergers and acquisitions are a way of rapid development, which helps to quickly make up for the company’s strategic shortcomings and quickly enhance the company’s core competitiveness. Through continuous mergers and acquisitions, by 2012, Fosun Pharma’s compound annual growth rate reached 32%. At this time, in the eyes of people in the pharmaceutical industry, Fosun Pharma's "medicinal taste" became stronger and it became a real pharmaceutical company.
In Wu Yifang's eyes, investment and mergers and acquisitions play a very important role in Fosun's strategy. Fosun Pharma has grown from scratch, from small to large, from weak to strong, and its investment capabilities and advantages have also played a vital role. But he also emphasized that innovation is always the core. "Because where does your value come from? Value must be created through innovation. Product and service innovation is very important, including management innovation, which is to satisfy consumers. The big health ecosystem created by Fosun is actually In the last service portfolio, we provided a package of solutions to consumers."
In the eyes of people in the pharmaceutical industry, each step of Fosun Pharma has been taken at the right time. Including the establishment of Henlius Fuhong, including the establishment of a joint venture with KITE PHARMA to establish Fosun Kate in China. Through the continuous drive of capital, international high-end talents have also been continuously assembled. And behind this is the embodiment of organizational vitality. It is understood that Fosun Pharma cooperates with outstanding scientists at home and abroad with entrepreneurial spirit through innovative mechanisms such as the "partner system" to form a "community of value", thus forming an open and win-win innovation mechanism, which has become a feature of the industry.
Liu Shigao, "Shanghai Thousand Talents Program Expert", head of the research and development platform of Fosun Pharma's macromolecular biosimilar drugs, is currently President and CEO of Henlius. In the field of biopharmaceuticals, Henlius is regarded as a "rising star". Compared with multinational pharmaceutical companies, he is still very young, but develops rapidly. In just 7 years, Fuhong Henlius started from monoclonal antibody biosimilars, gradually developed biologically improved monoclonal antibodies, and then to innovative monoclonal antibodies. With the efficient research and development of 6 products and 11 indications IND declaration, it has become the industry Leader, the products currently developed mainly cover tumors, autoimmune diseases and other fields.
According to Liu Shigao, he lived in the United States before 2008 and served as the Director of Drug Quality at Amgen Pharmaceuticals. His job at the time was relatively non-challenging. He was very worried about half a lifetime of rich experience and erudition, and wanted to do something meaningful. In the summer of 2008, a BD director of Fosun Pharma whom he knew before happened to accompany the chairman of Fosun Pharma, Chen Qiyu, to watch the project in the United States. Liu Shigao hosted the two at a Sichuan restaurant in the San Francisco Bay Area as the host. For lunch, the cooperation begins.
Liu Shigao's ancestral home is in Jiangsu, and he has many topics with Chen Qiyu who lives in Shanghai. After the fate, Liu Shigao felt that China's development opportunities were very good, and he had to return to his country to take a look. In October 2008, I met Dr. Jiang Weidong at an investment promotion conference in Hangzhou. The two hit it off and decided to start an innovative drug company together. Liu Shigao has rich experience mainly in pharmacy, QA, drug administration, and clinical aspects. Jiang Weidong is an expert in early stage including cell line construction and gene expression, namely antibody engineering. The complementary advantages of the two led to the birth of Fuhong Henlius monoclonal antibody.
Liu Shigao revealed that when he signed a joint venture with Fosun Pharma in Shanghai in December 2009 to establish a joint venture company, Fuhong Henlius, he had also contacted other domestic pharmaceutical companies, but after seeing more than a dozen teams of Fosun Pharma, he knew that Fosun Pharma also In the arrangement of the international talent echelon, and Shanghai is the most attractive place for international talents, all factors put together, I feel that the cooperation with Fosun Pharma is the most suitable.
Liu Shigao stated that Fosun Pharma has believed that monoclonal antibodies are worth investing in in the future since 2006. When the joint venture was established, the American scientist team on the other side of the joint venture promised to achieve “1+1+3” in 5 or 6 years, that is, one product is in the second and third clinical phases, one is in the first clinical phase, and three are in the pre-clinical phase. . Then it became "2+3+N", with 2 in the second and third phases, 3 in the first phase, and many in the research and development phase. Of course, the funds required by the joint venture are also being increased layer by layer, but Fosun Pharma supports it all the way. In 2017, there are already 2 long-awaited drugs in clinical phase III. It is estimated that there will be a consumer market of more than US$1 billion in the future.
Fosun Pharma's investment in the field of biopharmaceuticals can be described as unique. In addition to monoclonal antibodies, it also grasps the forefront of industry innovation and research, and cooperates with Kite Pharma to enter tumor cell immunotherapy. In early 2017, Fosun Pharma and Kite Pharma (listed on NASDAQ) established a joint venture in China to develop and produce autologous T cell therapy products including Kite Pharma's leading product KTE-C19, which will benefit cancer patients .
Wang Liqun, CEO of the joint venture company of Fosun Pharma and Kate, will lead the team to build it into the core platform of Fosun Pharma's immunotherapy products, and is the core scientist and leader of this platform.
Wang Liqun is also very rich in resume. He used to be in charge of the R&D center at GSK, and before that he was the head of AstraZeneca R&D center. Before, he lived in the United States and worked in important management positions in multinational companies such as Bristol-Myers Squibb. He received a bachelor's degree in cell biology from the University of Science and Technology of China, a doctorate in molecular biology from the University of Maryland, Baltimore, and an MBA from Saville University in Cincinnati.
So far, Fosun Health has achieved the perfection of the entire industry ecosystem from pharmaceuticals, medical services, medical equipment, health management, distribution systems, and health insurance.
Wu Yifang said that from Fosun International to Fosun Pharma, Guo Guangchang and his team have led companies with a very good vision, a big goal, and they are good at seizing opportunities in a constantly changing world.
Liu Shigao said that the most vivid thing about Guo Guangchang learning from Buffett is that his vision is long enough, his future value is accurate, and he can withstand loneliness. For example, when Fuhong Hanlius was established in 2009, it has been eating renminbi every day. The pharmaceutical industry is a long-term cycle. You must endure 10 years of loneliness when you see the dawn. These 10 years have been very firm. If there is a swing, you will not see today's Fuhong Henlius.
Therefore, Liu Shigao also believes that Fosun Pharma will become an industry-leading and truly powerful pharmaceutical company in such a logic that is in line with the development of the pharmaceutical industry.
Today, Wu Yifang has left many Fosun people with the impression that he is steady, talkative, and still has a strong learning ability.
Next, with the finalization of Fosun's big health strategy, Wu Yifang may feel the pressure not to fly everywhere, but how to complete a series of implementations in the new strategic plans of Guo Guangchang and Chen Qiyu.
"As the president and CEO, the most important task is to implement the strategy well. The principle of me as a person is to do everything in front of me steadily, and do my best to achieve the ultimate in everything. Once the five-year strategic goal is set, the three-year plan must be basically reliable, and the five-year goal must be full of passion, so as to continuously guide the entire team forward." Wu Yifang said.
At an internal work conference in 2017, Guo Guangchang stated that Fosun Pharma must have an ideal and be the Huawei of China's medical and health industry. Chen Qiyu proposed that the health industry should be deepened, refined, and perfected. This is almost a high-level level of Fosun Group, a new and higher positioning. It has gone far beyond the expansion thinking that once only wanted to create a closed-loop, international M&A development.
"No matter what we do, from the perspective of what we do in the industry, what we do must lead the industry and have a position in the industry. We still have to refine and strengthen each business format. This is the key." Wu Yifang said.
In fact, at this time, Fosun Pharma’s plate is already large enough, with a solid foundation for innovative R&D and deep internationalization.
In the first quarter of 2017, Fosun Pharma achieved operating income of RMB 3.880 billion, an increase of 20.29% over the same period of the previous year; R&D expenses from January to March 2017 were RMB 198 million, an increase of 37.64% over the same period of the previous year. In 2016, the annual operating income was approximately 14.629 billion yuan, and the total profit was close to 3.6 billion yuan.
In 2016, the main business segments that exceeded the task were pharmaceuticals, medical devices and diagnostics, medical services, and channel distribution of the joint venture Sinopharm Holdings. Among them, in the pharmaceutical sector, revenue exceeded 10 billion yuan, an increase of nearly 15% over the previous year; medical equipment and diagnostics revenue was close to 2.7 billion yuan, an increase of 18% over the previous year; medical service revenue was close to 1.7 billion yuan, an increase of nearly 15% over the previous year. The annual growth rate is close to 22%. Sinopharm Holdings (calculated in a separate table) achieved operating income of 258.388 billion yuan in 2016.
Wu Yifang said that it may not be too difficult to achieve higher goals on a sufficiently solid plate. In his view, first, compared with similar companies, Fosun Pharma is an enterprise with an earlier internationalization, and with the endorsement of Fosun's internationalization, this enables Fosun Pharma to more directly integrate with international first-class talents and innovations. Opportunities, looking for a variety of possible platforms and potential opportunities around the world; second, Fosun's layout in the health industry chain has a deeper insight and understanding of the market than other companies with a single business, and is more conducive to discovering opportunities; Third, after so many years of development, the development capability of mergers and acquisitions and integration is a core advantage of Fosun Pharma that differentiates it from other companies. Therefore, perhaps it is not too difficult to realize the dream of Huawei in the pharmaceutical industry.
Fosun Pharma's two core points are innovation and talents along the way. In the future, these are still the two most important points. In fact, these two core genes are inherited from the Fosun Group, and Fosun's advantages have been "unusual" since its inception.
A person in the pharmaceutical industry believes that Fosun is a very good company and very competitive among Chinese private enterprises at this stage. First, Fosun entered the market earlier, basically seized every policy dividend of China's reforms, and grew rapidly. Secondly, it is the core founder team, which is relatively high-quality among entrepreneurs of the same age and companies of the same era. Therefore, Fosun has always not only had an international vision, but has also been relatively open in various aspects such as mechanisms, and is relatively low-key.
This person believes that these innate factors have enabled Fosun to quickly enter the fast track of running development after its start.
In fact, it should be said that many of Fosun's mergers and acquisitions are in the wave of financial ups and downs, and they have identified the best points of acquisition. Of course, the judgment of the future is also very accurate.
Wu Yifang said that at one of Fosun's annual meeting, the host asked him, what is your biggest feeling during your years at Fosun? Wu Yifang replied that he felt very passionate about working with a group of very high-quality and very enterprising people. During the development process, he was constantly improving.
Wu Yifang believes that in Fosun, vitality is the gray scale of the system. In the training of talents under the high-quality echelon, Fosun is willing to give everyone a certain amount of space, that is, as long as you represent the interests of the organization, there is nothing you can't do. Yes, as long as you think it can bring development to the organization, and you dare to do it, you will support you.
In other words, with the rapid development of Fosun Pharma, the core of its success is wealth and people.
Guo Guangchang also said that after 25 years, he deeply understands that it is really not easy to achieve many goals. If it is not an elite organization, it will not succeed. Therefore, Fosun has always wanted to build an elite organization, and Fosun’s students must be elites.
For the standard of elites, Guo Guangchang summed it up as: those who can be 0.01 faster than the fastest people; Fosun is more willing to hire those who can accumulate 0.01 faster and more than others. Now, Fosun does indeed have a large number of younger, professional, global vision, and entrepreneurial students who have emerged to take on more responsibilities at all levels. This is Fosun's most important asset, and it is also the source of power for Fosun to continue to move forward.
In the establishment of the elite organization, Guo Guangchang emphasized two points. One is "Glocal", that is, "Global+Local", which strengthens in-depth local team building; the second is Fosun's global partner system.
Guo Guangchang said that the highest recognition of elites in Fosun's elite organization is to become a global partner. Although Fosun's global partners are inspiring, they are a kind of high recognition of Fosun's culture, mission and strategy. At the beginning of this year, Fosun announced a group of global partners, reaching more than 20. In the pharmaceutical sector, 3 partners, Chen Qiyu, Yao Fang, and Wu Yifang.
At present, the various sectors of Fosun Group are also actively establishing a multi-level partner system. Fosun's partners are not lifelong, and there will be new additions and withdrawals every year. It is understood that Guo Guangchang hopes that two types of people can become Fosun’s global partners. People who develop potential and are willing to continue climbing to high places. These two types of people must be self-driven, able to close the loop on their own, and be able to use Fosun's resources to do everything possible to advance their business.
Wu Yifang is also one of the partners. Wu Yifang’s direct experience of this system is that it is very effective to establish an innovative company with top scientists, mobilize the enthusiasm of the innovative team through the partner mechanism, and promote everyone to grow together. He believes that the connection between capital and the high-end professional capabilities of scientists is the key to the birth of future innovations. Only innovative ideas, without capital drive, can not achieve innovation.
Chen Qiyu and Liu Shigao “joked” and had to work until they were at least 60 years old. Liu Shigao felt that when he was 60 years old, a completely different international Fosun had replaced Fosun today. At that time, Fosun Pharma will also be a new pharmaceutical group.