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    Home > Active Ingredient News > Drugs Articles > With the acceleration of merger and reorganization, the concentration of pharmaceutical circulation industry is expected to further improve

    With the acceleration of merger and reorganization, the concentration of pharmaceutical circulation industry is expected to further improve

    • Last Update: 2019-12-07
    • Source: Internet
    • Author: User
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    [pharmaceutical network industry trends] under the requirements of "two vote system", the sales channels in the pharmaceutical industry are constantly being forced to flatten, which leads to the reorganization of the industry value chain and the big game of the interests of all parties In addition, through administrative means, the sales price of drugs and equipment consumables will be greatly reduced by volume procurement to compensate the winning enterprises with a larger market share and a smaller demand for sales promotion The unsuccessful enterprises will be forced to fight in the remaining small market share and face a greater business risk or even survival crisis But this kind of fierce market competition, to the medicine circulation profession influence is very obvious Data shows that many small-scale equipment circulation enterprises are disappearing and being acquired Recently, a large-scale equipment distribution company's relevant person in charge said that all kinds of policies make small dealers and small distribution companies unable to survive, and they want to grasp a large number of acquisitions "In the first three quarters of this year, our company has acquired at least ten small circulation companies In fact, we have talked more about it, but we need to see how the resources and terminal channel quality of these small companies are, and then decide whether to acquire them." As early as June 2018, it was also revealed by the vice president of a pharmaceutical logistics company in Henan that "at the end of 2017, there were 303 pharmaceutical logistics wholesale enterprises in Henan, and so far there are only more than 210" In half a year, 93 circulation enterprises in Henan went bankrupt or were acquired In fact, this is not only the natural elimination of enterprises caused by competition, but also the inevitable result of the increase of concentration of pharmaceutical circulation industry As early as the end of 2016, the national drug distribution industry development plan (2016-2020) issued by the Ministry of Commerce clearly stated that by 2020, a number of large-scale distribution enterprises with network coverage, intensive and high information level will be cultivated The annual sales of top 100 enterprises should account for more than 90% of the total drug wholesale market Recently, the state issued the notice of the leading group for deepening the reform of the medical and health system on further deepening the reform of the medical and health system through the centralized purchase and use of drugs (hereinafter referred to as the notice) The sixth part also clearly stated that it will promote the construction of a unified and open production and distribution market pattern in China We should promote fair and orderly competition in the market, break the market segmentation and local protection of pharmaceutical products, promote the cross regional and cross ownership merger and reorganization of production and distribution enterprises, cultivate a number of large-scale enterprise groups with international competitiveness, and accelerate the formation of a pharmaceutical production and distribution pattern with large-scale backbone enterprises as the main body and small and medium-sized enterprises as the supplement In fact, with the continuous expansion of the scope of centralized purchase of drugs and the introduction of relevant regulatory documents, the market concentration of drug distribution enterprises has indeed been further improved In recent years, the cooperation and acquisition between enterprises are constantly reported For example, on September 9, Nanjing Pharmaceutical announced that in order to further focus on the development of the company's pharmaceutical circulation business, improve the overall business network construction in Jiangsu, and improve the market coverage capacity in Xuzhou, the company signed the letter of intent for cooperation with Jiangsu Enhua pharmaceutical and Chen Jianren, a natural person, on the company's acquisition of shares of Jiangsu Enhua and run pharmaceutical, a commercial holding subsidiary of Enhua pharmaceutical A preliminary consensus should be reached With various policies, it will continue to promote the industry as a whole to speed up the general trend of reshuffle and integration The fierce market competition will lead the pharmaceutical circulation enterprises to enhance their strength through the extension growth of merger and reorganization and the endogenous growth of actively developing the terminal market This is very beneficial for the development of leading enterprises, but for some small and medium-sized pharmaceutical distribution enterprises, they will face greater pressure in the future.
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