Circulation enterprises change bureau 510,000 armed enterprises face a large number of elimination!

the circulation of the big reshuffleDecember 3, the official website of the State Council issued the Notice of the Leading Group of the State Council on Deepening the Reform of the Medical and Health System issued a notice on a number of policy measures to further deepen the reform of the medical and health system with the centralized procurement and use of medicines as a breakthrough(hereinafter referred to as the Notice).The sixth part of the Notice clearly states that it will promote the construction of a unified and open production and circulation market pattern throughout the country."Notice" shows that to promote fair and orderly competition in the market, break the market segmentation of pharmaceutical products, local protection, promote production and circulation enterprises across regions, cross-ownership mergers and reorganization, cultivate a number of internationally competitive large enterprise groups, accelerate the formation of large-scale backbone enterprises as the main body, small and medium-sized enterprises as a supplement to the pharmaceutical production and circulation pattern.Recently at a meeting, the China Federation of Logistics and Purchasing Pharmaceutical Logistics Branch of the relevant person in charge said that the future circulation industry will be more and more concentrated."China's national medicine, medicine, China Resources, Kyushua to the four major circulation enterprises, accounting for less than 40% of the national circulation share, the concentration of the equipment industry is worse, but in Europe and the United States, Japan, the industry head circulation enterprises in the market share of more than 75%, or even as high as 95%." The above-mentioned person in charge said.By 2015, U.S. circulation companies had been phased out over a decade, from more than 200 to 50, with the big three, McKesson, Amerisource Bergen and Cardinal, accounting for more than 96 percent of the wholesale business, according to research.In addition, France's top three circulation enterprises account for 95 per cent of the French circulation industry, Germany 70 per cent and Japan 68 per cent.In contrast, China's circulation industry has a long way to go in the centralized integration.510,000 armed enterprises, a large number of facing eliminationAccording to the State Drug Administration published the 2018 Annual Report on Drug Regulatory Statistics, as of the end of November 2018, there are a total of two or three types of medical device operating enterprises 511,000.Among them, only 292,000 enterprises operating second-class medical device products, only 67,000 enterprises operating three types of medical device products, while operating second- and third-class medical device products, 152,000 enterprises.Small equipment circulation companies are indeed disappearing or being acquired as policies such as the two-vote system continue to roll out.According to statistics, 25 provinces have started or fully implemented the two-vote system, leaving only 6 provinces and cities have not issued relevant policies.In June 2018, in an interview on CCTV's "Finding real growth in the pharmaceutical industry", the vice president of a pharmaceutical logistics company in Henan revealed that 93 circulation enterprises in Henan had closed down or been acquired in the past six months."At the end of 2017, there were 303 pharmaceutical logistics wholesale enterprises in Henan, and so far there are only more than 210 left." The vice president said.Recently, a large equipment circulation company related to the person in charge of the Cypress blue equipment said that a variety of policies so that small dealers, small circulation companies can not survive, for the acquisition of a large number. 　　"In the first three quarters of this year, our company bought at least ten small circulation companies, which is more talked about, but we have to look at the quality of their resources and terminal channels before deciding whether to buy." The above-mentioned person in charge said. 　　In fact, as early as the end of 2016, the Ministry of Commerce issued the National Drug Distribution Industry Development Plan (2016-2020), which states that by 2020, a number of large circulation enterprises with a high degree of network coverage, intensive and information technology will be cultivated. The annual sales of the top 100 enterprises account for more than 90% of the total wholesale drug market. 　　The increasing concentration of market share represents the elimination of more and more circulation enterprises. Double blow, alive is wang Dao in addition to the two-vote system, with volume procurement is also promoting the circulation industry concentration. 　　"Two-vote system" and volume procurement to the industry to bring different impact, but the two policies will jointly trigger a major reshuffle of enterprises, improve industry concentration, improve industry compliance and survival status, will achieve a number of enterprises, will also eliminate a number of enterprises. 　　Device circulation industry is generally divided into multi-level dealers of the "dealer model" and the first-level dealers of the "commission model." 　　However, after the two-vote system was rolled out, the dealer model was greatly reduced, and the enterprises either chose the commission model or the manufacturer's integrated direct sales, but the latter cost is too high, and ultimately most choose the commission mode, will be distributed, logistics entrusted to large commercial circulation enterprises, or the use of external consulting companies, CSO and so on. 　　But this will bring financial pressure to the arms enterprises, there is industry analysis, the original agent's ticketing model into manufacturers direct hair, but manufacturers will not like agents generally advance more funds, the need for commercial advances or short payment period, resulting in unprecedented tension in the flow of funds. 　　For the volume of procurement, Anhui, Jiangsu, Shandong and other places continue to promote price negotiations, price reduction of 80% of the situation is not uncommon. 　　Prior to the circulation of the relevant person in charge of the company's analysis of the Cypress blue equipment, circulation enterprises either earn the difference, or eat rebates, but the negotiations on the target supplies requirements flat out, there is no way to earn the difference, the price drop is too large, manufacturers also have no room to pay rebates. 　　"Even so, the circulation companies will deliver, because it's not just about making money, it's about grabbing market share and keeping your feet on the air." The above-mentioned person in charge said. 　　In addition, in November this year, a domestic circulation giant related to the person in charge also said that after the volume of procurement, the sales volume of enterprises increased significantly, but profits fell. 　　An industry insider also said that the industry reform is the redistribution of benefits, the original part of the benefits belonging to enterprises and hospitals to the hands of patients, coupled with the volume of procurement of large price reductions, although supplies and drug sales are growing, but the overall market share is declining, this situation is not conducive to all enterprises. 　　The industry is changing, a large number of armed enterprises have been standing on the edge of the cliff, in this environment, how to live is perhaps the most important consideration of the armed enterprises. (Cypress Blue Equipment)