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    Home > Active Ingredient News > Drugs Articles > Profits floating red pharmaceutical logistics "big rich game" and upgrade

    Profits floating red pharmaceutical logistics "big rich game" and upgrade

    • Last Update: 2021-02-07
    • Source: Internet
    • Author: User
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    The pharmaceutical giant's rich game is starting to add significant weight.
    Shanghai Pharma's third-quarter results showed that from January to September 2016, Shanghai Pharma achieved operating income of RMB90,517 million, up 14.52% YoY, and net profit attributable to shareholders of listed companies was RMB2,457 million, up 12.78% YoY.
    Almost at the same time, State Pharmaceutical Holdings, the largest domestic pharmaceutical circulation company with a background of state-owned enterprises, reported a third-quarter profit of RMB1,067 million, up 15.64 percent year-on-year, while Kyusju General, the largest private pharmaceutical circulation company, achieved a net profit of 307 million yuan in the third quarter, up 38.45 percent year-on-year.
    , while pharmaceutical logistics giants are shining red, have made no secret of their ambitions for greater growth in the market.
    According to the information provided by Shanghai Pharma to First Financial Journalist, it has significantly increased its capital expansion, and in order to enter the field of big health (Aiji, net worth, information) and internationalization, Shanghai Pharmaceuticals has decided to pay about 938 million yuan in cash to buy VIta, an ASX-listed company. In order to expand the Northeast market, enhance competitiveness in the region and promote the layout of the commercial network, Shanghai Pharmaceutical Park Xinhai Pharmaceutical Co., Ltd., a wholly owned subsidiary, acquired a 60% stake in Harbin Yangpu Yuhua Pharmaceutical Distribution Co., Ltd.
    Not only that, in order to achieve the southwest market commercial network layout, the wholly-owned subsidiary Shanghai Pharmaceutical Distribution Holdings Co., Ltd. acquired a 70% stake in Yunnan Shanghai Pharmaceutical Co., Ltd.;
    , as the largest private pharmaceutical logistics, Kyushu Tong's next stage of growth is likely to come from the depth of extension brought about by the new policy after landing.
    " two-vote system nationwide implementation, will accelerate the concentration of the industry, is conducive to the industry's leading enterprises. As the country's largest private commercial company, the company will benefit most from the implementation of the two-vote system. At present, the company's performance growth is much higher than the industry average, reflecting the company has outstanding operating capacity and strong development vitality. In the future, with the implementation of the two-vote system, the company's leading position will be more stable, performance growth is expected to further enhance, the company's value will be more prominent. "Minsheng Securities researcher Marco said.
    "two-vote system" refers to the drug sold from the pharmaceutical factory to the first-level dealers to open an invoice, dealers sold to the hospital to open another invoice, to "two votes" instead of the current common seven-vote, eight-vote, reduce the circulation of layer-by-layer stripping, and each variety of first-level dealers should not exceed two, in order to control drug prices.
    At this stage, after the State Council issued a message to actively promote the two-vote system, the provinces responded positively, in addition to the first implementation of the two-vote system in Fujian, most of the country's provinces and cities have proposed to implement the two-vote system, including Anhui, Shaanxi, Guangdong and other provinces and cities have been clearly implemented time, two-vote system has been "arrow on the string", it is expected that the vast majority of the country will implement the two-vote system in the future. From a time point of view, 2017 is likely to be a two-vote system landing key period, the provinces and even the relevant departments of the state will be introduced a two-vote system to implement supporting policies, is expected to promote the pharmaceutical business sector to accelerate integration.
    , as the largest private pharmaceutical commercial company, Kyusju Tong has a well-established national distribution network, with the implementation of the two-vote system, the future will benefit to the greatest extent possible from the increase in industry concentration. Batch-zero integration advantages, in the pharmaceutical e-commerce and prescription outflow and other businesses in the leading position.
    same time, as the most gold-rich sector of the Pharmaceutical Department, China Pharmaceutical Holdings, which focuses on pharmaceutical distribution, has not stopped expanding its new acquisition and retail terminal stores.
    Pharmaceutical Holdings said in a chinese newspaper that the pharmaceutical retail industry has entered a period of mergers and acquisitions expansion, size and capital has become an important competitive weight.
    In January this year, China National Pharmaceutical Holdings acquired Linyi Co., Ltd., China National Pharmaceutical Holdings Co., Ltd., with an 80% acquisition interest ratio, and in April, China Pharmaceutical Holdings continued to acquire 70% and 100% of the equity ratio, has been included in Taishan State-controlled Daqun Kangda Pharmacy Chain Co., Ltd., Beijing Yishan Juli Technology Co., Ltd., including pharmaceutical, health care supplies wholesale sales and the operation of pharmaceutical chain third parties have entered its acquisition vision.
    first half of the year, China Pharmaceutical Holdings' distribution and sales expenses were RMB3.135 billion, up 10.06 percent year-on-year and almost in the same period as its sales revenue growth, according to the company's financial results.
    but the market doesn't maintain a slight balance as a result.
    October 28, China Resources Pharmaceuticals, China's second-largest pharmaceutical group, officially landed on the Stock Exchange of Hong Kong, where its core business is pharmaceutical distribution.
    the listing of China Resources Pharmaceuticals is also believed to have directly exacerbated the already white-hot pharmaceutical circulation giant competition.
    2015, China Resources Pharmaceuticals' distribution business earned HK$123.156 billion, or 84.03 percent of its total revenue, according to public information released by the Company.
    , China Resources' prospectine clearly mentioned in its prospectines that in the pharmaceutical distribution and drug retail sectors, the company intends to reach the country by 2020 through mergers and acquisitions of large distribution networks.
    As of December 31, 2015, China Resources Pharmaceuticals had 114 subsidiaries, 111 logistics centers and 702 pharmacy stores, including 681 direct stores and 21 franchise stores, more than half of which were located in East China, according to the announcement. In 2015, China Resources Pharmaceuticals' retail business revenue reached HK$3.651 billion.
    And it is understood that 15% of China Resources Pharmaceutical's fund-raising will be used to build logistics centers and warehouses, 10% will be used to improve the company's information system focusing on "logistics function" solutions, and nearly half of the funds will be used for strategic acquisitions of pharmaceutical and distribution drug businesses, conservatively estimated that nearly 50% of the funds will flow to the distribution area layout. At HK$13.7bn, nearly HK$7bn has been raised, while more than HK$6bn has been invested in the overall flow of medicine, and the battle between the pharmaceutical giants is on the ups and downs. (First Finance)
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