What inspiration does the world's "largest generic drug" company bring to China?

In the sense that generic drugs are what truly safeguard the nation's health level, Teva's choice is not right. But Teva's generic is even better, because it lacks a moat. This is also the essential reason for domestic enterprises such as Hengrui to strengthen innovation.

In 2020, the FDA approved 755 generic drug applications (ANDAs), of which 80 were in China. The number of FDA ANDA applications in the first half of 2021 was 400, and China accounted for 40. Before innovative drugs, Chinese pharmaceutical companies have long gone to sea.

At the same time that a large number of ANDAs have been approved, some problems have been exposed in Chinese generic drugs. In 2018, the valsartan incident of Huahai Pharmaceutical allowed China's generic drug reputation to decline a lot. If innovative drugs represent the technological ceiling of the pharmaceutical industry, generics should be the "first man" in the pursuit of quality upgrades.

Although Teva has shown fatigue in the face of another round of competition, its product quality is still well-known, which is the foundation of Teva's global generics industry. For Chinese enterprises, more efforts to improve quality, can still obtain a certain space in the Red Sea market, even under the policy of collection, safety and reliability is still the most concerned issue of the competent authorities.

Getting back to "pharma" may be the most important lesson you can learn from Teva.