Olivier Charmeil

Executive Vice President, Head of General Medicines and Emerging Markets, Sanofi

As one of the first multinational pharmaceutical companies to enter China in 1982, Sanofi is deeply exploring the Chinese market. In September, Mr. Olivier Charmeil, EVP, Head of General Medicines and Emerging Markets and Mr Olivier Brandicourt, CEO of Sanofi visited China again to perform the strategic planning and realize the long-term growth.

Reporter: What is the importance of the China market to Sanofi?

Olivier Charmeil: As Sanofi’s third-largest market, China is definitely important. Sanofi entered China back in 1982, and has regarded China as a strategic market.

Our China strategy is based on three growth pillars: i) enhance our core business – Sanofi has developed a strong portfolio in diabetes, cardiovascular, CNS and oncology; ii) expand geographically to improve patients’ access to high-quality innovative healthcare products and service – especially China’s county market through our specific development strategy for primary care; iii) continue to drive innovation – accelerate new product launches and enhance our R&D capacity in China.

I first came to China in 1985, and have witnessed the great changes that have taken place since then. Meanwhile, people have been changing their views of China. When Sanofi entered China's market 30 years ago, it was left relatively alone. But now it is definitely an important part of our global development strategy.

Reporter: The overall economy has slowed down. What is your view of the trends in China’s healthcare market?

Olivier Charmeil: While GDP growth in China has slowed down, some fundamental factors have convinced us that China’s healthcare market will keep growing in the future: i) urbanization – which drives the healthcare industry to some extent; ii) the enhancement of health education – which has patients seeking the most suitable drug; iii) the aging population – the population aged 60 and above is expected to reach 200 million or even exceed 250 million in the next few years, further driving the healthcare industry; iv) the government – which is dealing with and addressing medical problems and challenges. Today, nearly 300 million patients with cardiovascular disease and nearly 100 million patients with diabetes have been diagnosed in China. China accounts for one-third of global diabetes patients. I believe China’s healthcare industry will become a high priority and further develop.

Reporter: What is the new product launch plan for China? Do you have any update on R&D?

Olivier Charmeil: We expect to focus on six new major products globally, five of which will be launched in China by 2025. They include atopic dermatitis and asthma, rheumatoid arthritis, and hypercholesteromia products, as well as two diabetes-related products. We hope to work with the Chinese authorities to accelerate drug approval. I’m not talking about Sanofi, but all pharmaceutical companies in China. New product launches in China are now being compared with those overseas. The Chinese authorities are working very hard to reduce the timeline. We want to work together with them. That is why we are including China more and more when carrying out international clinical trials. We want to ensure these innovative products will be launched in China ASAP.

China is an emerging market with a lot of potential for new product launches. Diabetes, for example, has great unmet medical needs and is one of the growth drivers.

Reporter: The Healthy China strategy should be a top priority for the Chinese government, as it was emphasized by President Xi Jinping at the National Health Meeting held in August. What is the implication for the healthcare industry? Will there be any impact on Sanofi’s strategy in China?

Olivier Charmeil: Ensuring people’s health is a strategic priority and a valuable development strategy. We strongly advocate President Xi’s focus and are proud to be part of the Healthy China strategy.

Nowadays, big hospitals are too crowded, so the Chinese government is developing a hierarchical medical system. For example, people with common colds are encouraged to be treated at community health service centers. Patients in remote areas or counties may receive local treatment instead of going to big cities by air or by train.

Sanofi established its Primary Care Business Unit at an early stage. Our professionals give ongoing training and education to county-level doctors. Now we are focusing on community health service centers with the same concept. In this sense, our efforts are aligned with the Chinese government’s targets. Sanofi will maintain its commitment to China, follow closely the evolution of the healthcare environment in China and support the government’s efforts to improve medical service.