Drug off-court market observation: Novarma, Bayer and other old MNC intensive hand-in-hand Internet

Recently, a number of well-known multinational pharmaceutical companies have been holding hands on the Internet, either in preparation for the sale of prescription drugs on the Internet, or in the out-of-hospital market on the trend of prescription outflow, but this is only the tip of the iceberg in the drug retail market. For the current out-of-hospital market protagonists - pharmacies, on the one hand, in buying, accelerating the layout of the country, on the other hand, but also for the Internet to liberalize prescription drug restrictions and worry, policy-driven prescription outflow is a long-term trend, pharmaceutical companies, pharmacies how to grasp?01 Multinational pharmaceutical companies intensive "hand in hand internet, Novarma, Bayer, Noel and Nord... Whether it is the old MNC, or the pharmaceutical industry, with the Internet platform "hand in hand", has been a clear visible trend. Recently, during the second import fair, a number of well-known multinational pharmaceutical companies hand in hand with the domestic Internet medical platform.On November 6, Novarma Pharmaceuticals (China) and Tencent launched the country's first artificial intelligence disease management platform for heart failure disease, "Care for Little Love (AI)," to achieve the digital management of the whole course of chronic diseases such as heart failure.On November 7th, Grigg Ingham signed a strategic cooperation agreement with 7 Internet medical enterprises, including JD.com Health, Good Doctor Online, Health Care, Medical Association, Ping An Good Doctor, Micro doctor, Andy Michio, covering all of Grigg Ingham's chronic disease treatment. Drugs in the field, such as Si Lihua, Si hehua, Ai Quanle, Cobbit (adapted to chronic obstructive pulmonary disease), mekasin, meccaro (hypertension), Tai Biquan, O'Donnell, O'Donnell (cardiovascular and diabetes), Senforo (Parkinson).On the same day, Noor and Nord joined forces with Ali Health to create an intelligent management platform for diabetes.On October 23rd Bayer announced that its prescription drug division would work with health care providers to explore innovative slow-disease management models, starting with diabetes slow-disease management, and said Zhang Jingchuan, national retail management director of Bayer's prescription drug division, that Bayer would seek breakthroughs and innovations in its "patient-centr" management approach, hoping to use health care providers' Internet technology to not only improve drug access, but also to transform the management of chronically ill patients from treatment to prevention scenarios and services.On October 20, during the World Internet Conference, Tencent Micromedicine signed a strategic cooperation agreement with well-known pharmaceutical companies such as Baiji Shenzhou, Kang Enbei, Ha Pharmaceutical Group, Qilu Pharmaceuticals, Zhengda Tianqing, Goli Bio, etc. to jointly establish a digital chronic disease prevention and control system for chronically ill patients .All in all, the major pharmaceutical companies are accelerating the development of the off-hospital retail market, especially the Internet medical channels, August 26, the newly revised Drug Administration Law passed, prescription drugs are not explicitly restricted, a senior practitioner in charge of pharmaceutical cooperation to E drug managers said that Internet medical is a trend, if prescription drugs are allowed, will certainly try.Major well-known pharmaceutical companies plus code Internet medical, although only the out-of-hospital retail market dynamics of the tip of the iceberg, but it is the microcosm of the entire industry. Since the new medical reform, a series of policies to promote the separation of medicines have been introduced intensively, in order to change the status quo of the public hospital-led prescription drug market, the government has put forward policies to reduce the proportion of drugs, control the use of auxiliary drugs and traditional Chinese medicine, doctors practice more points, and so on, to a large extent led to the outflow of prescription drugs.In particular, since 2017, the government has comprehensively pushed public hospitals to abolish drug credits (except for Chinese medicine tablets) and piloted the classification and classification management of retail pharmacies, encouraged the development of chain pharmacies, and explored the interconnection and real-time sharing of prescription information, medical insurance settlement information and drug retail consumption information in medical institutions.02 The big four retail chains: Buy and Buy Non-Stopand the main beneficiary of the prescription drug exoded is retail pharmacies, so what has happened to retail pharmacies in recent years?According to the China Pharmaceutical Business Association data, in recent years, the pharmacy retail industry chain rate has increased rapidly, from 35.58 percent in 2008 to 50.05 percent in 2017, but the concentration of the industry is still low, the overall "small and scattered" market pattern. TOP3 enterprise market share of about 8%, TOP10 enterprise market share of about 17.44%, compared with the United States TOP3 occupies more than 90% of the market share, TOP10 occupies more than 99% of the market share, pharmacy chain rate of up to 85%, far higher than China's retail pharmacy industry level.And at present, retail pharmacies are still the most important channel of OTC, OTC sales accounted for nearly 50%, but its sales growth rate is gradually declining, and prescription drug sales growth rate slightly increased, significantly more than OTC growth. From the comparison between China and the United States, China's retail prescription drug sales accounted for 9% of total prescription drug sales, a lower proportion, while U.S. retail prescription drug sales accounted for 34% of total prescription drug sales, so there is still a lot of room in the future out-of-hospital prescription drug market.On the one hand, it is the accelerated outflow of prescription drugs, on the other hand, under the two-vote system and other policies, the drug retail market is accelerating concentration, regional leaders through extended mergers and acquisitions plus internal self-construction continue to expand. By 2019, the big four pharmacies are still buying and buying, but this is slower than in 2018, and self-build rates are stabilizing, moving closer to 50 per cent.According to incomplete statistics of Northeast Securities, in 2018 alone, Yifeng Pharmacy, People, Dasanlin and Yixintang acquired 959, 413, 266 and 21 stores respectively; And that's just the data of the four big chains that are currently listed.Take the latest third-quarter report, Yifeng Pharmacy in the first three quarters of the net increase of 805 stores, including 579 new stores, the acquisition of 307, compared with last year, the pace of mergers and acquisitions slowed, but the internal increase in new construction, expansion is still in an orderly manner. The people in the first three quarters of the new direct and merger stores 536, of which 389 direct stores, included in the scope of the consolidated statements of mergers and acquisitions stores 147; 69 stores closed due to the company's development planning and business strategy adjustment. Dasanlin self-built stores speed up, data show that its Q3 self-built 119, closed 16, mergers and acquisitions, the strongest performance in September, the acquisition of two companies, involving 70 stores, its founder Ke Yunfeng has also publicly expressed an intention to speed up the acquisition speed, nationwide. In one mind, it was mainly self-built, with 595 new stores and 458 net additional stores in the first three quarters. The pace of product market expansion is on the ups and downs, and the capital markets are not pulling down. According to E Pharmaceutical Manager statistics, as of the date of writing, Yifeng Pharmacy's share price rose 111.33 percent in 2019, the common people rose 54.14 percent, the one-hearted rise of 42.16 percent, dasin forest rose 74.8 percent, the same period the market rose 11.06 percent, and far exceeded the industry average increase.
from the expansion of the four pharmacies and the performance of the capital market, we can see the expectations of the off-board retail market. 03 How to seize the opportunity of prescription in the long run, prescription drug outflow trend is irreversible. On August 26, 2019, the newly amended Drug Administration Law stipulates that drugs under special control in vaccines, blood products, narcotic drugs, psychotics and other countries may not be sold on the Internet and prescription drugs are not listed. At the time, Zhu Hengpeng, director of the Center for Public Policy Research at the Chinese Academy of Social Sciences, said in an interview with the media that the risks of selling prescription drugs online could be controlled and open, but would require a transition period for regulators, health care departments and hospitals. He believes that the revised Drug Administration Act may set a limit on the number of open enterprises, if the number of enterprises is limited, it is recommended to open 10-20 enterprises. The important premise of prescription outflow is to establish prescription sharing platform, at present, Internet medical enterprises and local governments are actively promoting the establishment of prescription sharing platform. September 6, the country's first provincial "electronic prescription information sharing platform" in Gansu fully launched, October 15, Ali Health jointly with Zhangzhou City, Zhejiang Province to build an online payment platform for chronic disease management, October 28, JD.com Health announced plans to jointly establish a major public hospitals in the country's chronic disease management system, to achieve online medical purchase.
the relevant developments so far, slow disease management has become the entry point of cooperation between pharmaceutical companies, on the one hand, the user's wide range, on the other hand, the promotion of policy. Previously, on November 26, 2018, the National Health and Wellness Commission issued the Opinions on Speeding Up the High-Quality Development of Pharmaceutical Services, which clearly stated that long-term prescription management for chronic diseases should be explored. The long-term prescription policy, combined with the hospital must not limit the outflow of prescriptions and other related policies, for patients and pharmacies are good. How will retail pharmacies develop under the policy? Guoyuan Securities believes that large-scale pharmacy chains focus on prescription drugs and specialized pharmaceutical services, the layout of professional DTP pharmacies, chronic pharmacies, etc. ; Northeast Securities believes that the outflow of prescription drugs will bring hundreds of billions of space market increments, the retail pharmacy model has a profound impact, including the introduction of retail pharmacies will directly connect a large number of patients with chronic and major diseases. Scope, in the future, there will be more drugstore chains into the county and city level and township-level market.
(E drug manager
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