Framework

• Survey conducted between February 13 to 17, 2020
• Engaged China based Pharma & Healthcare sector operators and investors: 104 responses

How did your Company respond to the crisis

Insights

• Flexible work arrangement policies were top of mind in order to provide a safe working environment, like working from home, as well as allowing operations to continue to the best possible
• Implement government required tracking systems were a priority thus putting HR and IT teams in the forefront. 23% participant’s tracking systems included third parties (eg. dedicated sales team, logistics, IT vendor etc.)
• Least concern was around adjusting 2020 targets: yet it may depend on the progression of the crisis 

Within your business priorities, what are the most difficult challenges to overcome during this crisis? 

Insights

• Market & sales activities were the ones most affected – as HCP facing engagements, medical & drug presentations events as well as simply Hospital physical access are currently impossible; and at current stage, HCP’s less interested in non-crisis-related e-detailings
• Adjusting business operations to ‘new market demand’ were 2nd top in mind to the executives 

On what aspects does this crisis impact your enterprise most?

Insights

• Supply chain management issues with logistic issues (inter-provincial transports, availability of transport services and their employees…) as well as access to raw materials (inventory management – minimum inventory levels constraints) are the obvious crisis impacts to most respondents
• Cash flow and financing concerns are of importance to > 50%
• Business channels ie. the relative limited use of ‘online’ access models in the sector were sighted by half of the respondents as a area of concern (and likely to topic for change going forward) 

How will your company do in short term to mitigate the impact to your business?

Insights

• All topics really apply…
• Strengthening local government relationship and hospitals is the highest short term priority
• The ‘new technologies’ focus: engage clients and distribute & access patients & clients through online channels is a clear focus 

Which of the following do you expect the new 5Y plan (14th) will have a significant emphasis on after the crisis?

Insights

• There seems to be consensus that the ‘Healthcare’ sector will be a key area of emphasis in the upcoming 14th 5 Year plan: Healthcare services, Hospitals and but also the approach to ‘prevention’ and ‘education’ of the population as a whole.
• Expectation are also, that there will be resources allocated to R&D, enabling Pharma’s to engage and deploy the necessary program covering China’s key health & disease areas 

With the crisis, do you perceive that local drug companies will be advantaged going forward to allow a fast re-directing of R&D resources specifically catering for China's needs?

Insights

• As expected, there is great difference in the anticipation of future support and resources provided to different market players, WOFEs are enjoying current regulations on new drug approval speed-up and are confident to make agile response for China needs;
• SOEs are also confident that they’ll benefit from their profound understanding of local market 

How do you foresee the crisis will impact on your business revenue in 2020?

Insights

• Very balanced
  • ~20% of the respondents believe that sales will catch up in 2020 and actually allow to meet currently set targets and budgets
  • ~20% of the respondents believe that sales will drop somewhere up to 20%
  • While a big portion of participants are uncertain about the whole year outlook, it may depend on the crisis progress 

In Summary: Insights and Outlook