2013 Midyear Working Conference and Strategy Seminar of Fosun Pharma

The Midyear Working Conference and Strategy Seminar 2013 was held in Ningbo on July 4th, 2013, over 70 HQs senior executives and BU leaders attended the Conference. Given the present internationalization and internet situation, the Conference utilized the topic of “Seek for Internationalization, Embrace the Internet” to further clarify the overall strategic planning and objectives of Fosun Pharma in the next 5 to 10 years, and discussed the strategic objectives and priorities of BUs and functions from 2013 to 2017. Guests from international renowned strategy consulting firms such as IBM, McKinsey and Roland Berger were also invited to give strategic trainings.
When introducing the strategic plan of Fosun Pharma, Yao Fang, Vice Chairman and President of Fosun Pharma stated that the future priorities include realizing innovation and globalization of pharmaceutical manufacturing, becoming the local leader of medical service, and forming the advanced business mode which embraces the internet. From the development orientation of Fosun Pharma, the company will become a leader of healthcare industry in China by 2022 with biomedical innovation capacity, internationalization and advantageous medical service. To achieve the vision that “Fosun Pharma is committed to becoming one of top enterprises in global dominant markets”, Yao pointed out three key points to realize the phase I goals (2013-2017): the first is to enhance the internal growth of main business, and current core business could exceed the industrial growth; the second is to form international acquisition of pharmaceutical business and strategic layout of medical service; the third is to establish an optimized, integrated operation management system.

On the day, the participants respectively made the review and planning of business strategies, discussed in group on internationalization of pharmaceutical business, future of medical service, development of medical device and diagnosis, branding of Fosun Pharma and other topics, thought over the way to achieve high growth, and reached agreement on future development strategies.

Guo Guangchang, Chairman of Fosun Group and non-executive director of Fosun Pharma attended the Conference on July 6th who thought highly of the previous performance and the topic of the Conference, and raised two expectations:

Firstly, Fosun Pharma should seize the opportunity to speed up the development. As for acquisition, the cooperation with Sinopharm is a good foundation, now, on the basis of acquiring Alma, should try to rapidly realize breakthrough in medical service and fast development of medical device.

Secondly, as a healthcare industrial group with whole industrial chain, Fosun Pharma should stand higher to consider the overall layout of Fosun Pharma. He believes that China has huge market space, under the background of the “big pharma and big health” strategy, Fosun Pharma should take the opportunity to build the competitive advantage of whole industrial chain and form competition barrier. Based on present business, it should get through the whole industrial chain from medical health insurance, drug manufacturing, drug distribution as well as retail and medical service to providing endowment solution. He said, “If we could really operate with whole industrial chain, utilize international vision, and develop acquisition and integration in China, with population aging and application of internet, I personally feel the space is very large.”

Chen Qiyu, Chairman of Fosun Pharma made a conclusion after the Conference, and he had confidence to find every step of developing pharmacy and medical service rapidly, so as to realize each phased objective of Fosun Pharma. Meanwhile, he also reminded everyone that the more important is to carry out the strategy. He said, “When discussing the strategy, HQs always focus on acquisition, but acquisition creates no value but risk. We have to focus on two points upon acquisition, the first is to rationally analyze and judge the future growth of the acquisition object, and it is more important for us to integrate and operate the acquisition object in future.” He took the example of Alma and called everyone to learn the globalized business management and optimal cost control innovation of Alma. Meanwhile, he described the globalized layout of Fosun Pharma in future from business, regional strategy, market and function aspects, and wished HR, Admin, Finance among other functions to become a supportive service sharing center, build service platform and simplify the functional hierarchy, so as to provide better support for development of the company.
In addition, he also emphasized that in the era of internationalization and internet, innovation is very important for future sustainable development of the company, and he wished all BUs and functions to think about how to innovate, how to build core competitiveness through innovation.

Finally, he expressed that the development core of the organization is the talent, and wished to establish talent system and train executives, leaders, consultants and basic employees based on current talent reserve base so as to drive rapid development of the company.