Drug retail mergers and acquisitions will continue to release hundreds of billions of dollars of the market

"The chain rate of existing retail pharmacies is still very low, and the development of the drug retail market will gradually shift from the growth of the number of stores to the increase in chain concentration. The next three to five years will still be a golden age of inter-pharmacy integration, mergers and acquisitions, and restructuring. "A few days ago, Xie Zilong, chairman of the People's Big Pharmacy, made a prejudgment in an interview with a reporter from the 21st Century Economic Report.
2017 is the 22nd year of the chain of pharmacies in China. Through the early stage of "big fish eat small fish, fast fish eat slow fish" type of circle mergers and acquisitions, coupled with the last two years of ordinary people, one heart, Yifeng pharmacy and other listed financing, PE, VC and other capital into the road, China's pharmacy mergers and acquisitions into the blowout period, the original scattered drug retail market ushered in a chain rate of year-on-year rise.
behind this wave of mergers and acquisitions, breaking down and divided by medicine, implementing zero-rate, promoting the separation of medicine, two-vote system and other medical reform policies, so that the prescription wall of public hospitals gradually appear cracks. How to find a place under the double clampdown of industry reshuffle and professional transformation is the subject that the current chain drugstore can't get around.Mergers and acquisitions circle will continue
in the existing pharmaceutical retail pattern in China, the people's big pharmacy is one of the few enterprises with a national self-employed drug retail network, in 2015 landed in the capital market, the first echelon.
Compared with the "low-area high-density outlets" and Yifeng Pharmacy's "self-built stores, mergers and acquisitions as a supplement" development strategy, the merger-and-acquisition expansion strategy of the people's big pharmacies is more ferocious, and its marketing network span is also greater.
Xie Zilong told reporters that in the self-employed stores, the people's big pharmacy to take the direct camp and join the parallel model, "the people's big pharmacy" for the direct store, "the common people's health pharmacy" for the franchise store. At present, the people's big pharmacy in the country has a total of more than 1800 direct stores.
, branch joining needs to go through a series of processes: investment consulting, field visits, qualification examination, contract signing, payment of fees, headquarters training, store decoration, opening. The hardware threshold to join the people's big pharmacy is not low, including 100 square meters of housing, there is a state-approved pharmacist or practicing pharmacist qualification certificate, has the operation of the local Food and Drug Administration approval and issued a drug business license.
at the same time, it is also a big deal. According to incomplete statistics, the people's big pharmacy since 2005 has carried out a series of equity and asset acquisitions, on the eve of the listing has reached 17. After landing in the capital market, it spent 340 million yuan to acquire a 65% stake in Lanzhou Huirentang, setting a new record for the number of drugstore chain mergers and acquisitions.xie Zilong revealed:
I choose the acquisition or acquisition object, adhere to eight indicators to assess the value of the object, including synergies, network value, enhance space, market leaders at all levels and so on." In addition, adhere to the existing advantages of provinces and cities priority, blank land level above the leading enterprises priority merger and acquisition ideas, as well as diversified strategy cash and equity payment, according to the needs of partners, choose the price payment method. The
other drugstore chains have not stopped running around the world. According to the Food and Drug Administration, at the end of 2015, the number of retail chains nationwide was 4,981, 204,000 retail chain stores, and the number of single pharmacies was 243,000, with a chain rate of 45.5%. According to arterial network data, China's retail pharmacy chain rate in 2016 has reached about 55%, the highest in years.
even so, China's retail pharmacy chain rate still has a lot of room for improvement. In the U.S. market, for example, retail pharmacy chains account for about 75 percent of the market, and CVS, Walgreens and Rite, the three drugstore chains, account for more than 75 percent of the U.S. drug retail market, with more than 4,000 stores. And China's retail chain drugstores in the number of the top ten market share is relatively low, the number of stores also can not meet the national coverage standards.
" large-scale mergers and acquisitions is only a process, integration optimization is the goal. We have taken advantage of most of the provincial headquarters, mergers and acquisitions integration is easier to play synergies. With the development of pharmaceutical separation, the value of professional services in the industry will become increasingly prominent, and specialized services will become the key to the future transformation of the pharmaceutical retail industry, and as the basis of differentiated competition. Xie Zilong said.Prescription outflow opportunities
behind the chain of pharmacies, affected by pharmaceutical policies, changes in consumer demand, pharmacies are also exploring diversified services, especially large and medium-sized drugstore chains, gradually extended to pharmaceutical services, drug distribution, chronic disease management, DTP pharmacies, health and welfare management.
"The growth of prescription drugs in pharmacies has outstayed the growth of OTC, and many industrial pharmaceutical companies are starting to value the retail side," said Luo Qi, general manager of the business and retail division of Kangzhe Pharmaceuticals. However, the country has implemented drug consistency evaluation in the past two years, and we see that drug quality competition will gradually replace price competition, which means that the future development of retail is the process of transforming into service specialization. "
hospitals have long dominated the prescription drug market, and hospital prescriptions are even more difficult to get out of, with prescription drugs accounting for a very low percentage of pharmacy sales. However, with the division of medicine, reduce the proportion of drugs, circulation of two-vote system and other medical reform policies landed, prescription outflow has been the general trend, will release hundreds of billions of levels of the market.
from a pharmacy's point of view, whether it affects doctors' income will be an important factor in the outflow of prescriptions. Xie Zilong told reporters that hospital prescription drug prices will face a zero rate, tender prices fall and pay by disease triple pressure. At the same time, raising the cost of medical treatment, encouraging multi-point practice and the development of private hospitals triple guidance, will also make hospitals, batch cooperation and hospital, shop cooperation situation has changed.
, pharmacies are also thinking about ways to improve the efficiency of professional services and services, find prescriptions, and work with hospitals, doctors, and pharmaceutical companies. Reporters noted that the listed drugstore chain has long been testing water to connect drug wholesale and terminal medical services, the initial realization of the chain of pharmacies service transformation.
Among them, the people's large pharmacy piloted the construction of 9 "hypertension and diabetes healthy living hall", with hypertension risk classification management and diabetes complication prevention as the core to carry out slow disease management;
Xie Zilong told reporters: "The demand for chronic disease services is increasing, from the point of view of diabetes alone, the ratio of doctors to patients is 1:500, the future of chronic disease services from hospitals to retail channels is an inevitable trend." From the experience of foreign countries, GSP management, category management, chronic disease management, prescription drugs to OTC sales, etc. are popular words in retail, which also requires the chain's control capacity and the quality of shop assistants to improve.
Luo Qi further pointed out, "the convenience of drug purchase and the convenience of diagnosis and treatment services in the patient's combination point is getting higher and higher, whether the future is a replacement of medical institutions, or retail pharmacies also do medical services, which is the biggest focus of the development of drug retailing." (21st Century Economic Report)