Continuously introduce products with great market potential, expand products portfolio and therapeutic areas is another important development strategy of the Group.
1. Three strategies of products introduction:
(1) Rapid-growth products strategy
Search for those products which have already sold in China and in accordance with the Group's products screening principles.
(2) Long-term prospects products strategy
Introducing pharmaceutical products manufactured by overseas pharmaceutical companies which required application of registration in China to increase transparency, predictability and stability of our products portfolio development.
(3) Permanent control marketing rights
Aside in the form of contract to control the products' right, we also considering upfront or pay for license fees to obtain the products selling and marketing rights in China to get more stable products portfolio.
2. Product screening strategies under different business models
(1) Direct Academic Orientated Promotion Model
We target prospective drug candidates among overseas and domestic pharmaceutical companies with a focus on therapeutic areas which we perceive to be in large demand in the Chinese market. When we select new pharmaceutical products, we employ strict selection criteria which include whether the product:
① has significant market potential or addresses unmet medical needs in China;
② has unique features that help to differentiate it from competitive products;
③ is difficult to imitate and to market in China.
The stringent product selection process will enable us to identify additional appropriate products suitable for Direct Network and to market them in the Chinese market.
(2) Agency Promotion Model
We target to seek products from overseas and domestic pharmaceutical companies which have huge market demand and have already captured some market shares in China and also have highly popularity and acceptation within Chinese physicians.
The Group will continue to expand product selection and evaluation, is not only committed to introducing an average of not less than two products that appropriate to the Direct Network each year, but also committed to introducing not less than two products that suitable to the Agency Network, while diversifying methods to introduce products, especially by way of purchase to obtain more stable and controllable products.
3. Market positioning
We formulate an appropriate marketing positioning for each product, primarily focus on identifying the following aspects of the product:
(1) the prevailing treatment protocols of physicians;
(2) the demographic profile of the relevant patient pool in China;
(3) potential competitive advantages.
Based on the marketing positioning, we formulate marketing strategies and plans to introduce products to the market. An overall strategic marketing plan for the year, with details for each region and each quarter of the year, is mapped out for each product. We believe a centralized marketing plan adjusted for local needs is an appropriate approach