The new "parity war" kicked off! Significant changes in pharmacy integration

Looking at the merger and acquisition of drugstores in 2019, in addition to the rapid growth of the four private listed chains, the large-scale merger and acquisition of other capital forces was basically suspended, and the "joining" tide surged It can be asserted that the "join in" mode will still prevail in 2020 Has the expansion mode of direct sale plus acquisition declined in the past? The main reason for the relatively powerful chains to vigorously recruit franchise stores is to increase the scale of commodity procurement with the fastest speed and maximum limit, so as to enhance the voice in the future competition, so as to have an advantage in the negotiation for various resources In November last year, Lin Jianning, director of the Southern Institute of pharmaceutical economics of the State Food and drug administration, pointed out in the "2019 national pharmaceutical economic information conference" that the sales growth of retail terminals in 2019 had a significant decline, and predicted that the sales growth of the drug market in 2020 would further decline, from 4% in 2019 to 3% In 2020, it is a high probability event to further expand the capacity and increase the variety of drugs with volume purchase, and it is also an inevitable trend for more and more pharmacies to join in the group of centralized purchase, which will lead to the decline of drug price again At present, large scale is one of the most effective measures for drugstores to deal with various adverse factors Therefore, the integration of drugstores will continue in 2020 So, what will be the changes and new features of integration in the new year? If the chain drugstores want to implement the store expansion plan in the new year, they have to consider the significant impact of further decline in drug profits At the end of the year, a group of chain drugstores that had started at "fair price" chose to take the initiative in December 2019 in the face of the sharp price reduction of the bid winning drugs purchased with volume of drugs More than 1300 stores of Yikang and more than 1600 stores of shuyucivilian all carried out the bidding price of centralized drug procurement organized by the state Yifeng promised that if customers were in other market institutions other than Yifeng within 2 kilometers, After verification, drugs of the same factory and specification purchased at retail price or membership price lower than Yifeng will be returned at 3 times of the price difference of the minimum sales unit; ordinary people claim that more than 5000 stores across the country implement the national bid winning price, which is "the same price as the same medicine" with the hospital There is no doubt that if other competitors do not follow up, the above-mentioned chain drugstores will form a greater price advantage in these winning products and generate strong customer attraction energy Of course, it is estimated that their price reduction is supported by the manufacturers It is reported that in March last year, when the medical institutions at all levels in Xi'an fully implemented the results of centralized procurement of drugs organized by the state, Xi'an Yikang held talks with the winning manufacturers As a result, four pharmaceutical enterprises, including Jiangsu Haosen pharmaceutical, AstraZeneca, Chengdu Beite pharmaceutical and Xiansheng pharmaceutical, clearly stated that the winning varieties of "4 + 7 volume procurement" would be reduced simultaneously in their cooperative chain drugstores, while Yikang did not reduce the price The bid winning varieties shall be removed from the shelves In those years, the fair price drugstores sold with small or negative profits of brand drugs, which had been "encircled" by brand drug companies, but finally the two sides shook hands, and in recent years, the cooperation became closer, from partners to strategic allies For the enterprises winning the bid, the implementation of "the same drug price" in drugstores and hospitals seems to cause great losses on the surface, but in fact, it is not First of all, the essence of drug volume purchase is to exchange quantity for price The drug sales in hospitals account for nearly 80%, which is the largest Secondly, the sales volume of these Dalian locks plus the followers is also a considerable number Besides, the drainage after price reduction can also achieve the purpose of exchanging quantity for price Needless to say, in order to get the treatment of "the same drug price" given by pharmaceutical enterprises and hospitals, there must be a high threshold In the environment of declining profitability of the high gross model, Dalian lock can be used as a competitive tool to speed up the integration process In the face of the price war launched by Dalian lock, there are not many choices for small and medium-sized chains, but only by "big tree" or "group" However, different from the parity war of that year, the number of "parity" price reduction varieties is small, and the decline range is high or low The products and prices that win the bid are the same, and there is not much room for operation It is estimated that the price war of the products that win the bid will follow the price war of the products that do not win the bid In March last year, after the announcement of Xi'an's "4 + 7 volume procurement" bid winning catalogue, Yikang said it would reduce the price of some drugs of the same name that failed to win the bid by 30% to benefit consumers Although the purchase of drugs with quantity is mainly aimed at hospitals, it plays an objective role in promoting the integration of drugstores For the enterprises winning the bid, the implementation of "the same drug price" in drugstores and hospitals seems to cause great losses on the surface, but in fact, it is not First of all, the essence of drug volume purchase is to exchange quantity for price The drug sales in hospitals account for nearly 80%, which is the largest Secondly, the sales volume of these Dalian locks plus the followers is also a considerable number Besides, the drainage after price reduction can also achieve the purpose of exchanging quantity for price After the National University, the common people, Yifeng and dashanlin, the two "giants" of Yixintang and Gaoji medical have also launched the "join in" chariot, but this does not mean that they do not pay attention to the expansion way of opening direct stores and purchasing Even though the franchise mode is hot, it is upgrading and shifting Dalian lock has adopted the management mode of Direct stores one after another In fact, there is no big difference between such franchise stores and direct stores To measure the strength of a chain drugstore, the number of Direct stores has always been one of the most important indicators It is understood that although the large-scale nationwide M & A of Gaoji medical has been suspended, the pace of expanding stores has not stopped The chain drugstores that it acquired have annual store expansion indicators, but the indicator requirements are not too high, which is equivalent to the normal pace of chain drugstores' expansion A manager of a drugstore in Guangxi told reporters that the competition among drugstores is fierce, the net profit level of Direct stores is very low, and there is not much space in the market, "if a large-scale store is opened, the profit will be very ugly." On the one hand, market competition is one of the main factors that affect the opening of drugstores, such as the insufficient number of licensed pharmacists, the possible lifting of the ban on online prescription drugs, and the impact of the expansion of volume purchase of drugs In addition, from some cases of holding M & A, there are some problems in the process of integration The urgent task is not to expand, but to straighten out all aspects, to achieve real unified management and scale effect, which is more important in the current market environment Influenced by the superposition of various reasons, compared with the rush in of early capital, the financing cases are one after another, which seems to be a lot of cold in recent years However, there are exceptions, not excluded in a few regions Some large-scale chains open stores quickly at any cost in order to achieve the strategic purpose of competing for market share and dominant power But generally speaking, the expansion of chain drugstores in 2020 is mainly based on stability After the crazy period of merger and acquisition, the purchase price of drugstores dropped significantly, and the purchase of large chain drugstores became cautious, no longer deliberately pursuing quantity, but still aiming at high-quality chain stores On November 27, 2019, Guoyao group united Pharmaceutical Co., Ltd issued a notice that it agreed to purchase 60% of the shares of Pu'er Songji Antang Pharmaceutical Co., Ltd held by Pu'er Songmao Pharmaceutical Group Co., Ltd at a price of no more than 90 million yuan by Guoyao holding Guoda pharmacy Co., Ltd., its holding subsidiary By the end of September 2019, there are 96 stores in Ji'an Tang, 93 of which have medical insurance qualification According to the statistical data, Ji'an Tang's operating revenue in 2018 is 15.08 million yuan, with a net profit of 7.65 million yuan; from January to September 2019, Ji'an Tang has achieved operating revenue of 117.21 million yuan, with a net profit of 12.1 million yuan Yifeng's acquisition of Xinxing has set an example for the industry: sometimes, by acquiring a high-quality regional leader, we can not only break into our own blank or weak areas, but also increase the overall strength of the enterprise Therefore, the acquisition of Guoda and the four private listed chains will not be suspended, but the choice will be more cautious, and it is estimated that they will adopt more holding methods including performance gambling From some cases of merger and acquisition, there are some problems in the process of integration The urgent task is not to expand, but to straighten out all aspects To realize the real unified management and scale effect is more important in the current market environment At present, the purchase of large-scale chain drugstores has become cautious, but the high-quality chain is still determined to get It can be made clear that no matter how the policy environment and market environment change in 2020, the integration of drugstores will continue What is changing is just the speed of the process and the different ways Now, let's look at the possible changes of several major integration forces in the market All billion health and health care The whole billion health care and high-tech medical care can rank the top because of their wealth Especially for the latter, the investment of tens of billions is amazing At present, the large-scale M & A of all billion health and Gaoji medical has been suspended After acquiring several billion yuan of financing and high-profile acquisition of five chains in Sichuan in 2017, Quanyi fell into silence There are rumors in the industry that there is a problem between the capital side and the management team If there is no follow-up support from the capital side, large-scale M & A cannot continue, which is one of them; secondly, the environment has changed and the best time for large-scale M & A has been missed Gaoji medical should not be short of money For example, in December last year, Gaoling capital invested 41.7 billion yuan to become the largest shareholder of Gree, which is the best proof Through more than two years of large-scale purchase and purchase, Gaoji medical purchased more than 10000 pharmacies around the country, with an annual sales of 20 billion yuan The national layout has been basically completed The next step should be the chain purchased to be responsible for the local expansion Although it can obtain the support of its regional platform, it will step into the normal expansion track of pharmacies National University and private listed chain Before the emergence of all billion health care and Gaoji medical care, Guoda and the four private listed chains have been the main force to integrate drugstores The integration of Guoda was carried out first In the early stage, it benefited a lot from the large-scale acquisition of wholesale companies by Guoyao group The drugstores of these wholesale companies were divested into Guoda drugstore system The acquisition of Pu'er song Maoji Antang once again proves that Guoda, a state-owned brand, is not bad for money Compared with other drugstore capital, the advantages of the four private listed chains lie in the identity of being able to be listed and the continuous rounds of financing From the beginning to the end, drugstores rather than capital dominated, which is also the reason why the four private listed chains keep stable and rapid expansion on the integration road Last year, four private listed chains proved the halo of "leading role" with their achievements after the collapse of the crazy M & A of all billion health and Gaoji medical In 2020, this camp will still be the absolute main force of M & A It is not ruled out that there will be large M & A cases like the National University of China At the same time, there is a great possibility of rapid expansion in some regions Jianzhijia and shuyucivilian Jianzhijia and shuyumin are regarded as the most promising quasi listed enterprises after the four private listed chains In recent years, the number of their stores has grown rapidly Once the listing is successful, we believe it will usher in a new climax of expansion Friends health and a tree in Guizhou Although the M & a scope of Zhongyou health is much larger than that of Guizhou, there is one thing in common between the two, namely, the way of "cash + equity"