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Veterans of nearly 30 years return to Johnson & Johnson China. Why are multinational pharmaceutical companies frequently changing their leaders in China?

2024-07-15

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Following multinational pharmaceutical companies such as Eli Lilly, GlaxoSmithKline (GSK), Novartis, and Philips, Johnson & Johnson China officially announced the new head of its medical technology business.

On July 15, Johnson & Johnson China announced that Zhou Mintao will serve as president of its medical technology China region from July 25, reporting to Vishnu Karla, chairman of Johnson & Johnson Medical Technology Asia Pacific, and become a member of the leadership team of Johnson & Johnson Medical Technology Asia Pacific.

In April this year, Song Weiqun, then chairman of Johnson & Johnson China and president of Johnson & Johnson Medical Technology China, resigned to seek external development opportunities. According to the news at the time, Song Weiqun will continue to serve as chairman of China and president of Johnson & Johnson Medical Technology China until the end of September this year, fully responsible for the company's business operations and daily management to ensure a smooth transition and handover.

Song Weiqun has been working for Johnson & Johnson since 2003. He is the first locally grown China Chairman in the company's 130-year history. His departure surprised the industry, and who his successor will be has also attracted attention. The news of Zhou Mintao's appointment is the first official appointment since Song Weiqun announced his resignation. It is worth noting that according to the official news, Zhou Mintao's position is President of Medical Technology China, which does not include Song Weiqun's previous position as Chairman of China.

Johnson & Johnson was founded in 1886 and is headquartered in the United States. After the spin-off of its consumer health business in 2023, it mainly covers two major sectors: medical technology and innovative pharmaceuticals. In 1985, Johnson & Johnson entered China and currently has more than 10 legal entities and 5 major supply chain bases in China. Its medical technology business entered the Chinese market in 1994, focusing on surgery, orthopedics, cardiovascular and professional solutions.

Zhou Mintao, who is about to take up his new position at Johnson & Johnson Medical Technology, was previously the president of Greater China for Danaher's biotech company, Stomatology. Looking back on his career, he is a veteran with nearly 30 years of work experience at Johnson & Johnson. Zhou Mintao joined Johnson & Johnson's consumer products business as a sales representative in 1992, and has worked in Johnson & Johnson's consumer products business and the Ethicon division of Johnson & Johnson Medical Technology. At the end of 2021, Zhou Mintao left Johnson & Johnson and joined Danaher. This is his return after more than two years.

Against the backdrop of multinational pharmaceutical companies adjusting their global business structures, a number of multinational healthcare companies have officially announced changes in their leaders in China since this year, but the specific reasons vary.

In January this year, Eli Lilly China announced the arrival of Huzur Devletsah, the new president and general manager of Eli Lilly China, who is the first female head of Eli Lilly China. The previous person in charge of this position was Pei Liming, who left after more than a year in office at Eli Lilly China. Some industry insiders believe that this change in Eli Lilly's senior management is related to the pressure on the performance of the Chinese region. The 2022 financial report shows that Eli Lilly China's revenue is US$1.453 billion, a year-on-year decrease of 13%. The 2023 semi-annual report shows that Eli Lilly China's revenue is US$772 million, a year-on-year decrease of 3%.

GSK and Novartis changed their leadership in China in May this year, both due to the promotion of the former heads. Specifically, Qi Xin was promoted to Vice President of Greater China and Intercontinental Region and Head of Vaccine Business of GSK, and Yu Huiming, former Vice President of GSK and General Manager of Taiwan, took over as Vice President of GSK and General Manager of China; Zhang Ying, former head of Novartis China, was promoted to Chief Commercial Officer of Novartis International Business Department, and Leo Lee, President of Novartis Japan, was appointed President of China.

In the field of medical devices, Philips announced on July 3 that He Guowei decided to retire, and Liu Ling will take over as President of Philips Greater China and become a member of Philips Global Executive Committee, reporting to Philips Global CEO Jaber.