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    Home > Active Ingredient News > Drugs Articles > "Two ticket system" to speed up drug circulation and integrate pharmaceutical enterprises to actively layout the sales end

    "Two ticket system" to speed up drug circulation and integrate pharmaceutical enterprises to actively layout the sales end

    • Last Update: 2018-04-16
    • Source: Internet
    • Author: User
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    Source: data from China Securities Journal - chinasecurities.com on April 16, 2018 shows that as of April 15, 123 of the 139 listed companies in the pharmaceutical and medical industry that have published 2017 annual reports have achieved an increase in sales expenses compared with last year Among them, there are 62 enterprises with an increase of more than 100 million yuan, accounting for about half Fosun Pharmaceutical, China Resources Sanjiu and other large pharmaceutical enterprises led in the increase of sales expenses As for the soaring sales expenses of pharmaceutical enterprises, the relevant listed companies mainly attributed it to the implementation of the "two vote system" policy "The implementation of the two ticket system means that in the past, the role of agents, distributors and distributors in the circulation field will be compressed into one The layer upon layer ticket passing and price increase in the circulation link will be rapidly reduced The sales, promotion and distribution functions of the whole circulation link will either be undertaken by large pharmaceutical commercial companies with both upstream and terminal, or be collected and compiled by upstream pharmaceutical manufacturing enterprises, or become the only one The third-party drug service company In the whole circulation process, small dealers and agents will withdraw or be acquired in large quantities " Industry insiders said Although the high gross profit of medical and pharmaceutical industry has always been concerned by the market, in addition to operating costs, many listed companies in the industry also need to pay huge sales expenses In terms of the proportion of sales expenses to total operating revenue, about one quarter of the 139 listed companies in the pharmaceutical and medical industry account for more than 30% of the total sales expenses, which means that for every 10 yuan earned by the listed companies, 3 yuan is used for sales From the perspective of growth quota, Fosun Pharmaceutical, China Resources 39 and other leading enterprises rank first, among which Fosun Pharmaceutical increased by about 2.1 billion yuan in 2017 and China Resources 39 by about 1.5 billion yuan In terms of the growth rate, the sales expenses of Lingkang Pharmaceutical Co., Ltd., Jincheng Pharmaceutical Co., Ltd and TIANYAO Co., Ltd increased by multiple According to the 2017 annual report, the sales expense of Lingkang pharmaceutical in 2017 was 539 million yuan, an increase of about 9 times over the same period of last year; the sales expense of Fu'an pharmaceutical in 2017 was 583 million yuan, an increase of more than 3 times over the same period of last year; the sales expense of Shuanglu pharmaceutical in 2017 was 369 million yuan, an increase of about 3.5 times over the same period of last year For the reason of the increase of selling expenses, listed companies mainly attribute it to the implementation of the "two vote system" policy In order to optimize the order of drug purchase and sale, reduce the "Exploitation" of circulation links, and solve the problem of false high drug price, the "two ticket system" has been implemented for one year Why does the sales cost of drug enterprises increase instead of decrease? In response, Shi lichen, founder of Beijing Dingchen medical management consulting center, told reporters, "when the original multi vote system, many business links can solve the problem of high opening, and even some links can implement the semi high opening, but after the two vote system, the pharmaceutical enterprises are basically high opening and high return, so the marketing costs naturally rise." That is to say, after the implementation of the "two ticket system", pharmaceutical enterprises carry out high invoicing and base price settlement The difference between the high invoicing and the base price, one part of which pays taxes and the other part of which is given to dealers, but the sales expenses drawn by dealers from pharmaceutical enterprises must provide legal offset invoices From the announcement of related listed companies in the industry, this part of sales expenses are mostly used for academic marketing expenses, terminal promotion expenses, etc "This part of the cost has not increased, but has been transferred from the original circulation link payment to the payment of pharmaceutical enterprises." He said It is worth noting that for pharmaceutical companies, the rise in sales costs is a general trend Looking for a more effective way to reduce the cost of sales may be a headache for high-level pharmaceutical companies for a long time It is understood that the traditional distribution mode of drugs in China is mainly divided into two types, one is the self built marketing team of pharmaceutical enterprises, the other is the agent sales mode Due to the high cost and other reasons, the self built marketing team of pharmaceutical enterprises has not been widely used With the formal implementation of the two vote system in January 2017, the structure of drug trade has changed, and the vast number of middlemen have lost the affiliated soil of the ticket companies The production and operation of pharmaceutical manufacturers are facing severe challenges Before, pharmaceutical enterprises let middlemen to operate their sales and promotion matters Now, pharmaceutical enterprises are continuously adding sales terminals and building vertical industrial chain through self construction or M & A Taking Fosun Pharmaceutical as an example, by the end of 2017, a domestic and international marketing team of nearly 5000 people had been formed, compared with a marketing team of only 3000 in the same period last year, with an increase of nearly 2000 people in one year In addition, in response to the promotion and sales of lenalidomide, a new heavy drug, Shuanglu Pharmaceutical Co., Ltd also established a marketing team of about 100 people at the end of 2017 Mr Shi lichen said that the marketing transformation of pharmaceutical enterprises needs to be carried out from the whole marketing system rather than from the tactical level At the same time, the marketing transformation does not mean that it is necessary to build a comprehensive marketing team, because the cost of building a marketing team is too high and the cycle is too long Marketing transformation is to integrate marketing resources in the market, among which the integration of terminal resources is one aspect In addition to the self built marketing team, pharmaceutical enterprises also increase the number of sales terminals through M & A Bikang announced on February 12 that Shaanxi Bikang Pharmaceutical Group Holding Co., Ltd (hereinafter referred to as "Shaanxi Bikang"), a wholly-owned subsidiary, intends to use its own funds of no more than 110 million yuan, 60 million yuan and 180 million yuan respectively to acquire 70% of the equity of Hunan Xinhe Pharmaceutical Co., Ltd (hereinafter referred to as "Hunan Xinhe") held by Nanjing Xingbang Health Industry Development Co., Ltd and Jiangxi Kangli pharmaceutical products Flow Co., Ltd (hereinafter referred to as "Jiangxi Kangli") has 70% equity and Qinghai new oasis health products development Co., Ltd (hereinafter referred to as "Qinghai new oasis") has 70% equity At the same time, Shaanxi Bikang plans to use its own funds of no more than 75 million yuan to increase its capital to Kunming Oriental Pharmaceutical Co., Ltd (hereinafter referred to as "Kunming Oriental") to obtain 51% of its equity Hunan Xinhe, Jiangxi Kangli, Qinghai new oasis and Kunming Dongfang are all regional pharmaceutical commercial companies, among which Qinghai new oasis and Kunming Dongfang have their own chain drugstores The company said that if Hunan Xinhe, Jiangxi Kangli, Qinghai new oasis equity acquisition and Kunming Oriental investment can be successfully completed, it will help to improve the sales capacity and market development capacity of the company's pharmaceutical products "In the long run, it is beneficial for pharmaceutical companies to enhance their terminal control ability, while in the short run, it will bring financial and tax risks and channel restructuring risks," the executives of one of the large listed pharmaceutical companies told reporters "In the future, more and more circulation enterprises may choose to be acquired by manufacturing enterprises and transformed into logistics and service centers," said the industry insiders In addition to the pharmaceutical manufacturers increasing the number of sales terminals to layout the pharmaceutical business, large pharmaceutical commercial enterprises are also constantly consolidating their own distribution map Because the two vote system reduces the agency link and greatly reduces the pharmaceutical circulation link, "after the two vote system is officially implemented, some drugs of small circulation enterprises withdraw from the hospital, large circulation enterprises take the opportunity to fill in the gap, and the concentration of circulation industry is expected to accelerate." Haitong Securities said Haiwang biology also said that the two vote system has brought business opportunities to large-scale pharmaceutical commercial enterprises M & A is the industry behavior of the overall pharmaceutical commercial enterprises, not a single phenomenon If the company wants to maintain a good momentum of development in the future, only by occupying more business channels can the enterprise become stronger and more competitive in the market Taking Shanghai Pharmaceutical as an example, it continuously improved the breadth and depth of its distribution network in China in 2017, successively acquired 100% of the equity of kantle, a foreign peer, with us $576 million, and indirectly owned all its business entities in China established in Hong Kong and China through kantle; invested RMB 297 million to obtain Sichuan Shenyu Pharmaceutical Co., Ltd (now renamed as "Shanghai Pharmaceutical holding Sichuan youyou") (limited company) 51% equity; invested 579 million yuan to acquire 99% equity of Xuzhou Pharmaceutical Co., Ltd In addition to the deepening layout of large pharmaceutical commercial giants with distribution networks all over the country, local leading pharmaceutical commercial enterprises are also constantly integrating the industry It is worth mentioning that cross regional M & A has become a way to improve its competitiveness because these local leaders are limited by the small distribution area Taking Luyan pharmaceutical as an example, in March 2017, it acquired 51% of the equity of Sichuan World Expo Pharmaceutical Co., Ltd with RMB 102 million, further expanding the distribution and distribution service market of pharmaceutical and health products in Sichuan Province, such as drugs, devices, consumables, medicinal materials and in vitro diagnostic reagents A year later, Luyan pharmaceutical recently completed the acquisition of the remaining shares of the latter.
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