The new business model of drug retail M & A needs to be formed

Source: Murphy diaries 2016-9-22 in the three years from hot to cold winter of pharmaceutical e-commerce, pharmaceutical retail channels have received unprecedented attention This is not only the market imagination inspired by the new channels of pharmaceutical e-commerce, but also the trend change faced by pharmaceutical retail in the context of the national medical reform is advancing in depth From the perspective of the general background, the reform of public hospitals has entered the critical stage Whether it is the proportion of drugs, the ratio of drug consumables or the zero difference rate of drugs, it has brought huge restrictions to the hospital channels of drug sales, which directly promotes the market imagination of retail channels and the capital market's bet on drug retail Although the hospital is under pressure to let drugs flow out of the hospital channel, but in the current situation that the service cost has not increased on a large scale, the hospital and doctors still have strong motivation to keep them in the hospital, so as to maintain their own interests This also means that the hospital's prescription outflow will only be a small scale before the introduction of further strong policies, which can not reach the scale imagined by the market Drug retail channels still need to adopt more realistic strategies In the next five years, the main theme of drug retail will not be to gain market share of hospitals, but to merge Since last year, the merger and acquisition of retail pharmacies has accelerated significantly, on the one hand, because the policy encourages the concentration of retail channels to improve, so as to change the situation of small and scattered But more importantly, the development of retail channels has reached a turning point Such a transition is not brought about by technology or new channels such as medical e-commerce, but by the unsustainable development mode faced by drugstores for a long time The long-term problem of Chinese drugstores is the lack of core competitiveness, poor Ping efficiency, and continuous market competition A large number of small and medium chain drugstores and monomer drugstores have been unable to maintain their own sustainable development Although the large-scale chain is large but not strong, it has strong anti risk ability due to its large scale Therefore, there is a strong shuffling impulse in such a market, which ultimately promotes the development of large-scale M & A In the short and medium term, the core of drug retail will be closely around M & A, and the market concentration will be greatly improved No matter medical e-commerce or other services, they will be just a supporting role in the market, unable to dominate the market However, although other services are not the core of market development, this does not mean that these are not the long-term development direction The main reason for the long-term lack of core competitiveness in China's drug retail is that the retail channel has always been unable to obtain medical resources, which makes the retail channel only fight a price war on OTC and other non drugs without threshold However, under the premise of no large-scale outflow of prescriptions, how to add competitiveness to pharmacies is very challenging At present, drugstores are mainly trying medicine e-commerce, chronic disease management and Internet hospitals But these three are actually restricted by the hospital Before the fundamental change of the hospital system, it is difficult to achieve a breakthrough development However, the development of these three businesses will help the drug retail channel to establish its own service capacity, so as to rapidly promote the transformation and scale expansion of the business under the favorable market conditions With the increasingly strict control of medical insurance fees, PBM will probably grow, so as to promote the supervision of prescriptions and strictly control the sales of prescriptions in drug retail channels Therefore, even in the medium-term small-scale out of hospital prescription market, the party who masters PBM can really win Although this is a small market, it is of great significance and helps retail channels obtain core resources Generally speaking, the trend of drug retail channel in the short and medium term will be large-scale integration, still with the existing development model as the core, other new business models need to be formed, and can not become the main driving force of drug retail until the large-scale hospital reform is completed