The rise in OTC (over-the-counter) prices has caused concern in the market. Recently, China Resources 39, Yunnan White Pharmaceuticals and other listed companies in the disclosure of investor relations activity records, the company's related products have carried out different ranges of price increases.
an interview with Securities Daily, a Chinese pharmaceutical executive said that since the state liberalized the market pricing power of OTC drugs, the company's low-cost product prices gradually increased. "But these are cost-driven price increases that won't have much impact on the company's net profit, so there's no announcement."
, another OTC pharmaceutical company told reporters that the company's products are not currently rising prices. But do not rule out the future because of rising costs and product price increases.
, third-party pharmaceutical services platform McConley founder Shi Lichen in an interview with Securities Daily, said that in addition to over-the-counter drugs, prescription drugs, raw materials and so on are also rising prices. "As labor costs, environmental costs rise, and tax costs rise following the two-vote reform, the operating costs of companies continue to rise, and drug prices become a major trend. In the future, this upward trend in prices will continue".
OTC ushered in price increases
pieces, Dong'a gum on its products prices for different ranges of increases, triggering the market on consumer products, pharmaceutical prices of high concern.
Recently, China Resources 39 disclosed the investor relations activity record table shows that in the price strategy, after the price liberalization in 2015, the company gradually combed the price strategy, according to its own brand positioning, consumer acceptance, as well as the situation of competition in related categories, to do some product price adjustments, such as in recent years on the 39 stomach Thai, cold spirit, strong dew and other products to carry out a small price increase.
yunnan white medicine disclosed on May 10, the investor relations activity record table, the company's drug price increase involves three varieties: can paste, hemorrhoid cream and aerosols. Price adjustment is mainly considered for channel providers, especially retail terminals. OTC is highly competitive and has little profit margin in the channel. In order to mobilize the enthusiasm of channel vendors, make up for the product channel profit defects made price adjustment. In addition, the factory price has also been adjusted, but the overall adjustment is smaller.
Fossy Pharmaceuticals issued a "announcement on product price increases" on March 1 this year, according to the production costs and market demand for drugs, decided to start from March 1, 2018 concentrated pills, honey pills, water pills, oral fluids, adhesives, granules, tablets and other dosage forms of more than 100 products to increase prices, the above-mentioned products will increase the average factory price of 17.6%, retail prices will be adjusted accordingly.
as early as 2017, Mr. Ma adjusted the price of its products. The company said that in order to actively respond to the rise in raw material prices and labor costs pressure, speed up technological innovation and intelligent manufacturing upgrades, accelerate the development of new drugs, strengthen the secondary development of large varieties of Traditional Chinese medicine and the extension of large health products development, strengthen consumer health education, the company decided from the date of the announcement to raise the company's leading product Ma Shouldlong musk hemorrhoid cream supply price, an increase of 18%. After the price adjustment of this product, it is expected that the 2017 sales revenue and gross profit of the variety will be increased accordingly.
, however, recently reporters interviewed Ma Shouldlong company, which told reporters that the company's products are not expected to raise prices again.
a good retail pharmacy?
the impact of OTC price increases on pharmaceutical companies themselves and end-of-sale has also attracted investors' attention.
, the OTC chain terminal is expected to benefit from consumer upgrades and product price increases to achieve rapid growth, according to a research report released by Guangfa Securities.
, Mr. Shrlison told reporters that the OTC business of retail pharmacies is not a good day, especially for selling more well-known drugs and making less money. "Pharmaceutical companies in order to give drugstores profits, the price of products, to a certain extent, to enhance the profit margins of pharmacies."
Guangfa Securities said that pharmacies and specialized hospitals accounted for a relatively high out-of-the-way health insurance charges less impact, more market-oriented, is expected to maintain high growth in the next three to five years. From the point of view of product price increases, since the abolition of the government's price limit for low-cost drugs in 2015, all kinds of general medicine products, especially OTC products gradually increase prices, most products factory prices and terminal prices increase simultaneously, later manufacturers will also give pharmacies a certain rebate, so the benefit of the chain of pharmacies may even be higher than the manufacturers.
OTC price increase, in response to investors' questions, said that the price increase is basically a common phenomenon, will not have a greater impact on sales. One heart, consistent evaluation, the state to strictly control the quality of production, enterprises to increase the cost of product research and development sales reasons, some product price increases are normal. However, the overall price increase is not high, and most of them are supply prices and retail prices are rising simultaneously. At the same time, the price increase, the quality of goods can be provided to consumers commitment, service value is also rising simultaneously.
, with the promotion of graded diagnosis and treatment, medicine separation and other policies, pharmaceutical companies have also begun to lay out retail terminals. For example, in April this year, Baiyunshan announced that the company intends to jointly invest with One Heart Hall, Guangdong Guang Pharmaceutical Jinshen Equity Investment Fund Management Co., Ltd. in Guangzhou City to set up a joint venture Baiyunshan One Heart Hall. After the establishment of Baiyunshan, we will give full play to the resource advantages of all partners, based on the Guangdong market, through mergers and acquisitions, new construction and other ways to accelerate the layout of the pharmaceutical chain terminal. (China Economic Network)