Recently, a number of pharmacies have been delisted from the market, and the industry concentration is accelerating

Recently, the Shanxi Provincial Food and Drug Administration issued a notice stating that in accordance with the application of Shanxi Jiukang Pharmacy Chain Co.
, Ltd.
to cancel the "Drug Distribution License", in accordance with relevant regulations, it has decided to cancel the "Drug Operation License" of Shanxi Jiukang Pharmacy Chain Co.
, Ltd.
(Code: Jin B3510107)
.
Coincidentally, a few days ago, the Liaoning Provincial Food and Drug Administration also cancelled a chain pharmacy
.
The Liaoning Provincial Announcement pointed out that, in accordance with relevant regulations, the bureau decided to cancel the Pharmaceutical Business License of Chaoyang Huaxing Pharmacy Chain Co.
, Ltd.
(license number: Liao BA4210009, valid until December 2, 2025) in accordance with the enterprise application
.
In addition, in accordance with the "Guangdong Food and Drug Administration Regulations on the Cancellation of Pharmaceutical Business Licenses" (Guangdong Food and Drug Administration Law [2013] No.
26), from March 14 this year to October 8, 2021, The Fengxi Branch of the Chaozhou Municipal Market Supervision Administration has also cancelled the Pharmaceutical Business Permits of 14 companies including the Health Source Pharmacy in Fengxi District, Chaozhou City in accordance with the law
.
It is understood that according to the "Drug Administration Law" and the "Measures for the Supervision and Administration of Drug Circulation", to engage in drug wholesale activities, you should obtain the approval of the local drug regulatory authority and obtain a drug business license
.
In other words, no medicines can be sold without a medicine business license
.
Therefore, this also means that the above companies will withdraw from the pharmaceutical market
.
In fact, from the perspective of the overall environment, it is not uncommon for pharmacies to cancel and delist
.
In the past two years, it has been common to see announcements that pharmacies take the initiative to cancel the "Drug Business License"
.
Many places including Guangdong, Jiangsu, Shandong, Henan, Guangdong, Sichuan, Chongqing, Shaanxi and other places have recently issued pharmacies to cancel their licenses to withdraw from the market
.
The analysis believes that this is mainly due to the implementation of centralized procurement, the further reduction of drug prices, the reduction of profit margins of pharmacies, and the increasingly strengthened supervision, limited operations, and the no longer good business of pharmaceutical companies
.
In the future, as the medical reform continues to deepen, it is expected that more and more pharmacies and pharmaceutical companies will choose to sell certificates and delist them from the market
.
Among them, especially small and medium chain pharmacies
.
According to data from the National Food and Drug Administration, as of the end of March 2021, the number of pharmacies nationwide has exceeded 560,000
.
Among them, there are 6,593 retail chain headquarters, 319,100 retail chain stores, and 241,900 single drug stores
.
With severe overcapacity in the domestic pharmacy industry, supply far exceeds demand, and enterprise competition is further intensified, small and medium chain pharmacies have weak commodity bargaining power and defects in operation and management.
Without capital support, they face large chains.
Constantly seizing the market, its accelerated "retreat" is expected to become the general trend
.
But for the development of the entire pharmacy, this is not a bad thing
.
Every industry has a certain elimination rate, and pharmacies are essentially a pure commercial system
.
Analysis believes that the accelerated delisting of a large number of pharmacies may further increase the scale, intensification, and standardization of chain enterprises, so as to facilitate the masses to purchase drugs and ensure drug safety
.