Core Viewpoint - The continuous implementation of centralized drug procurement in China is reshaping the pharmaceutical industry, pushing traditional companies towards efficiency, innovation, and international expansion to ensure sustainable development [1][2]. Group 1: Centralized Drug Procurement - The National Healthcare Security Administration has conducted the tenth batch of centralized drug procurement, involving 62 types of drugs, bringing the total to 435 since 2018 [1]. - Experts indicate that the normalization of centralized procurement is forcing traditional pharmaceutical companies to abandon simple expansion strategies and adapt to a more efficient and innovative operational model [1][2]. Group 2: Cost Control and Efficiency - Centralized procurement has significantly reduced drug prices by compressing the price margins in the distribution chain, compelling traditional companies to optimize costs and build a lean management system across the entire industry chain [2]. - Companies like Jiangsu Jibeier Pharmaceutical have implemented strict procurement management systems to control costs, while Health元药业 has integrated AI technology to enhance production efficiency and reduce risks [2]. Group 3: Research and Development - 博瑞医药 has increased its R&D investment in innovative drugs and inhalation formulations to 62.78% of total R&D spending, a year-on-year increase of 77.37% [3]. - The shift from scale expansion to lean survival is seen as a long-term strategic choice for traditional pharmaceutical companies, emphasizing the importance of genuine innovation for sustainable growth [3][4]. Group 4: Innovation and Market Position - Traditional pharmaceutical companies are increasingly focusing on developing innovative drugs and high-barrier generic drugs to transition from reliance on low-cost generics [4]. - 恒瑞医药 has invested 46 billion yuan in R&D since 2011, achieving significant milestones in innovative drug approvals and clinical trials [5]. Group 5: International Expansion - Chinese pharmaceutical companies are becoming key players in the global market, with over 90 licensing transactions completed in 2024, totaling over 50 billion USD [7]. - The trend of "going global" is driven by enhanced R&D capabilities and favorable external conditions, allowing companies to compete effectively on the international stage [7][8].