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    Home > Medical News > Medical World News > The latest results of the Big Three, Sinopharm, Shanghai Pharmaceuticals, China Resources, and the Big Three

    The latest results of the Big Three, Sinopharm, Shanghai Pharmaceuticals, China Resources, and the Big Three

    • Last Update: 2021-07-10
    • Source: Internet
    • Author: User
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    Pharma.
    com.
    cn on April 6th.
    The three major pharmaceutical business giants of National Control, Shanghai Pharmaceuticals, and China Resources released their 2020 report cards.
    Both National Controls and Shanghai Pharmaceuticals have further increased their revenues.
    Thelatest performance of the three major pharmaceutical companies is released.

    Recently, National Controls, Shanghai Pharmaceuticals, and China Resources
    China Resources separately released its 2020 financial reports
    .
    On the whole, although last year was deeply affected by the new crown epidemic, both National Control and Shanghai Pharmaceuticals have achieved a certain degree of growth in operating income and profits.
    Only China Resources's operating income has dropped by 2%
    .

    In
    2020, Sinopharm Group achieved business revenue of RMB 456.
    41461 billion, a year-on-year increase of 7.
    32%; annual net profit of RMB 12.
    09729 billion, a year-on-year increase of 13.
    91%; net profit attributable to the parent reached RMB 7.
    18728 billion, a year-on-year increase of 14.
    95%
    .
    Specifically, China Control's performance in business segments such as distribution, retail, and equipment
    .
    Pharmaceutical distribution: Pharmaceutical distribution revenue was RMB 348.
    29438 billion, accounting for 74.
    18% of Sinopharm's total revenue, an increase of 3.
    25% from 337.
    3163 billion in 2019.
    This was mainly due to the sound development of Sinopharm's pharmaceutical distribution business and the further expansion of its distribution network
    .
    Pharmaceutical retail segment: Pharmaceutical retail revenue was RMB 24.
    16434 billion, accounting for 5.
    15% of the total revenue of State Control, which was an increase of 22.
    02% from 19.
    82929 billion in 2019, mainly due to the growth of the retail pharmaceutical market
    .

    Medical device segment: National Control’s medical device revenue was RMB 89.
    40225 billion, accounting for 19.
    04% of National Control’s total revenue, an increase of 29.
    02% from 69.
    29354 billion in 2019, mainly due to National Control’s acquisition and expansion of the medical device business.
    Business growth
    .
    Other business segments: Revenue from other businesses of Sinopharm was RMB 7.
    65168 billion, an increase of 51.
    91% from RMB 5.
    0371.
    3 billion in 2019
    .
    It is worth noting that in 2020, the proportion of the pharmaceutical distribution segment of National Controls will decline, and the proportion of the equipment and retail segments will increase-the proportion of revenue from the pharmaceutical distribution segment will drop by 4 percentage points to 74.
    18%, while the medical equipment and pharmaceutical retail The sector rose by 2.
    98 percentage points and 0.
    56 percentage points respectively, reaching 19.
    04% and 5.
    15%
    .

      Shanghai Pharmaceuticals In
    2020, Shanghai Pharmaceuticals achieved operating revenue of 191.
    09 billion yuan, a year-on-year increase of 2.
    86%, of which the pharmaceutical industry achieved revenue of 23.
    743 billion yuan, a year-on-year increase of 1.
    08%; the pharmaceutical business achieved revenue of 168.
    166 billion yuan, a year-on-year increase of 3.
    12%
    .
    The net profit attributable to shareholders of listed companies was 4.
    496 billion yuan, a year-on-year increase of 10.
    17%.
    The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 3.
    821 billion yuan, an increase of 10.
    41% year-on-year
    .
    The main business of the pharmaceutical industry contributed a profit of 2.
    253 billion yuan, a year-on-year increase of 8.
    56%; the main business of the pharmaceutical industry contributed a profit of 2.
    514 billion yuan, a year-on-year increase of 13.
    21%
    .
    Shanghai Pharmaceuticals stated in its 2020 annual report that in the pharmaceutical business sector, it is committed to building a closed-loop medical service ecosystem-the pharmaceutical distribution business achieved sales revenue of 167.
    65 billion yuan, an increase of 3.
    24% year-on-year; gross profit margin was 6.
    97%, an increase of 0.
    10 year-on-year Percentage points
    .
    The pharmaceutical retail business achieved sales revenue of 8.
    519 billion yuan, a year-on-year increase of 2.
    15%, with a gross profit margin of 13.
    48%, a decrease of 0.
    75 percentage points from the same period last year
    .

      China
    Resources Pharmaceuticals' total revenue in 2020 will reach HK$20,423 million, which is mainly affected by the epidemic, a decrease of 2.
    0% from 2019's total revenue of HK$204.
    453.
    9 billion (reduction of 1.
    2% in RMB terms)
    .
    In 2020, China Resources Pharmaceutical's revenue from the three main business segments of pharmaceuticals, pharmaceutical distribution, and pharmaceutical retail accounted for 14.
    6%, 82.
    0%, and 3.
    2%, respectively, and the proportions in 2019 were 15.
    0%, 81.
    7%, and 3.
    2%, respectively— —In other words, in the past year, China Resources Pharmaceutical's revenue share in pharmaceutical distribution has increased, while its pharmaceutical business revenue has decreased
    .
    In 2020, China Resources Pharmaceuticals achieved a profit attributable to the company’s owners of HK$3,297 million, an increase of 0.
    3% from 2019’s of 3,286.
    4 million (a year-on-year increase of 3.
    8% in RMB terms)
    .
    China Resources Pharmaceutical's products include chemical drugs (prescription drugs and over-the-counter drugs), biological drugs, traditional Chinese medicines (prescription drugs and non-prescription drugs) and nutritional health products , covering cardiovascular and cerebrovascular, digestive tract, endocrinology, respiratory, orthopedics, hematology, anti-tumor, medical nutrition , gastroenterology, pediatrics, urinary and reproductive systems, cold and cough, anti-infective, dermatology, therapeutic infusion
    .
    The annual report shows that in 2020, China Resources Pharmaceuticals will produce more than 560 products throughout the year, of which nearly 300 products have entered the national medical insurance catalog, and 131 products are in the basic medicine catalog
    .
    In 2020, China Resources Pharmaceutical's pharmaceutical business achieved segment revenue of HK$32.
    206 billion, a decrease of 4.
    7% from 2019, and a year-on-year decrease of 3.
    5% in RMB terms, mainly due to the impact of the epidemic and volume purchases, which led to a year-on-year decline in prescription drug business revenue; The gross profit margin of the pharmaceutical business was 60.
    5%, a decrease of 2.
    7 percentage points from the same period last year, mainly due to the decrease in the proportion of prescription drug products with higher gross profit margin
    .
    Specifically, China Resources Pharmaceutical’s prescription drugs recorded revenue of HK$15.
    709 billion, a decrease of 13.
    8% from the same period last year (12.
    9% year-on-year in RMB terms), mainly due to the decline in revenue from medical terminals affected by the epidemic, especially anti-infection, The revenue of infusion and cardiovascular and cerebrovascular businesses has declined significantly; China Resources PharmaceuticalsThe self-diagnosis and treatment (CHC) business (mainly including over-the-counter drugs and health products) recorded a revenue of HK$14,646.
    3 million, an increase of 10.
    6% from the same period last year (an increase of 11.
    7% in RMB terms), mainly due to the substantial increase in revenue from Ejiao products ; The biopharmaceutical business achieved a revenue of HK$158.
    5 million
    .
    In 2020, China Resources Pharmaceutical's revenues in the areas of prescription drugs such as psychology/neurology, nephrology, hypoglycemic, and Chinese medicine formula granules, as well as non-prescription drugs such as pediatrics, gastrointestinal, cardio-cerebrovascular, skin and other non-prescription drugs, will achieve different growth rates year-on-year
    .
    In 2020, chemical medicine, traditional Chinese medicine, biological medicine, and other products contributed 45.
    9%, 45.
    0%, 0.
    5% and 8.
    6% of the pharmaceutical business sales revenue respectively
    .
    In 2020, China Resources Pharmaceutical’s distribution business achieved segment revenue of HK$168.
    832.
    1 billion, a decrease of 1.
    1% compared to 2019, and a decrease of 0.
    5% in RMB terms
    .
    However, the gross profit margin was 7.
    1%, an increase of 0.
    2 percentage points from the same period in 2019, mainly due to the rapid growth of revenue from the equipment business with high gross profit margin
    .

      Under the volume procurement, continue to expand the commercial business For the
    normalized and institutionalized volume procurement, the three major pharmaceutical business giants have mentioned in the 2020 financial report
    .

      Sinopharm: To undertake mass procurement of related products.
    In
    2020, the reform measures such as mass procurement of drugs and medical insurance catalog negotiations organized by the state and provincial medical insurance bureaus will continue to be implemented
    .
    The first three batches of state-organized drug purchases involved a total of 112 varieties, and the provincial-level drug purchases totaled 259 varieties
    .
    In order to cope with the flat network transformation and channel sinking brought about by the medical insurance reform, Sinopharm continues to tap the scale advantages of the distribution network covering all levels of medical institutions, enhance the intensive operation capability, and undertake the market share of mass procurement of related products
    .
    In 2020, Sinopharm realized revenue of RMB 348.
    29438 billion in drug distribution business, a year-on-year increase of 3.
    25%.
    Among them, the primary market business continued to expand, and the terminal network coverage of various provinces, municipalities and autonomous regions has exceeded 500,000
    .
    Thanks to the endogenous business expansion and network sinking, the proportion of direct sales business income of Guokong and the proportion of income derived from non-provincial capital cities continued to expand
    .
    The transformation and upgrading of the distribution industry has further promoted the reconstruction of drug sales and circulation models
    .
    In 2020, SCC will actively integrate existing nationwide network and business resources, promote model innovation, and build a nationwide integrated marketing service platform
    .
    While further strengthening barriers to competition, State Control also focuses on the adjustment and optimization of business structure and product proportion
    .
    In 2020, State Control will accelerate the docking of upstream business resources and continue to strengthen its ability to undertake large-scale procurement of varieties and innovative drugs
    .
    Judging from the results of the implementation of volume purchases in the first three phases, State Control is in the industry's leading position in the acquisition rate of related products, and the market share and total distribution volume have increased significantly
    .
    In addition, the ability to obtain innovative medical equipment products has further emerged
    .
    While continuously exerting the competitive advantages of leading enterprises , it further enriches and optimizes the product structure
    .

      Shanghai Pharmaceuticals: Actively participate in the selection of distributors.

    Shanghai Pharmaceuticals stated in its annual report that it is still the second largest national pharmaceutical distribution company and the largest imported pharmaceutical service platform in China
    .
    The distribution network covers 31 provinces, municipalities and autonomous regions across the country, of which 24 provinces, municipalities and autonomous regions are directly covered through holding subsidiaries, covering more than 32,000 medical institutions of various types, and the retail network is distributed in 16 provinces, autonomous regions and municipalities across the country.
    The total number of pharmacies exceeds 2000
    .
    In 2020, the country implemented the national centralized procurement of the third batch of drugs, and volume procurement has become normal.

    .
    With the continuous expansion of policy influence and coverage, the requirements for the business coverage and core competitiveness of medical circulation service providers will also be higher
    .
    Shanghai Pharmaceuticals actively participates in the selection of distributors for mass-purchasing products, provides value-added services such as market access, stocking and warehousing, and project promotion for winning bidders, strives to improve service quality and brand influence, and builds long-term and stable cooperative relations with industrial enterprises through services
    .
    In 2020, Shanghai Pharmaceuticals also accelerated the coverage of its domestic distribution network through mergers and acquisitions, and completed the acquisition of Jiangsu Runtian Biochemical Pharmaceutical Co.
    , Ltd.
    , the third-ranked pharmaceutical circulation company in Nanjing, and set up locations in two blank areas in Nanjing and Taizhou to form Wuxi- The Nanjing-Xuzhou business axis from south to north has truly achieved effective coverage of the entire Jiangsu Province; the provincial platform construction and network extension layout in Hunan, Yunnan, Shandong and other provinces have been completed, further consolidating the advantages of the national commercial layout
    .

      China Resources Pharmaceuticals: Strengthen the acquisition of high-quality products.

    China Resources Pharmaceuticals actively participates in mass procurement in the pharmaceutical distribution business, strengthens the acquisition of high-quality products, enhances market access capabilities, continues to improve product structure, strengthens the coverage of the grassroots market, and promotes the development of innovative businesses.
    Promote digital transformation, use Internet technology to enhance professional service capabilities, actively expand e-commerce business, accelerate the vigorous development of equipment distribution business, and promote international business expansion
    .
    In 2020, China Resources Pharmaceuticals will continue to increase the introduction of high-quality products, establish a supply chain management center to implement unified strategic procurement, undertake more than ten strategically segmented business landing projects for suppliers, and actively participate in drug delivery with large-scale procurement.
    A number of pharmaceutical companies whose products have passed the consistency evaluation have reached cooperation
    .
    At the same time, China Resources Pharmaceuticals actively expands upstream resources, vigorously develops new strategic cooperation businesses, and continues to accelerate the introduction of high-quality tumor drugs, innovative drugs, biological drugs, and rare disease drugs.
    During the year, it has obtained Gilead, Roche Pharmaceuticals, Hengrui Pharmaceuticals and other companies The total distribution rights and strategic distribution rights of many of the blockbuster products further enrich the product portfolio of the distribution business in the fields of anti-tumor, blood, and diagnostic reagents
    .
    In terms of pharmaceutical distribution and retail business, China Resources Pharmaceuticals focuses on medical, equipment, retail, new retail and other business formats, focusing on the mergers and acquisitions and platform construction of leading companies with high subdivisions and key product lines
    .
    In the follow-up, China Resources Pharmaceutical plans to strengthen business collaborative development and resource integration, optimize resource allocation, improve operational efficiency, give full play to China Resources Pharmaceutical’s synergistic leading role, establish a cross-regional, multi-level, and multi-mode collaboration mechanism to promote the implementation of collaborative projects
    .
    Under the background that the impact of the epidemic is gradually receding, enriching products, expanding channels, and improving efficiency are still the common choices of pharmaceutical commercial enterprises
    .
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