How far is Step Pharma from China's Johnson and Johnson?

Pharmaceutical Network July 8th, the evening of July 6th, Shandong Step Pharmaceutical Co., Ltd(hereinafter referred to as "Step Pharmaceuticals", SH603858) announced that it intends to transfer 51% of the holding subsidiary Of Hubei Step-Long Kyushu Tong Pharmaceutical Co., Ltd(hereinafter referred to as "Step-long Kyushu Tong") 51% of its shares to Kyushu Tong Pharmaceutical Group Co., Ltd("Kyushu Tong", SH600988)In December 2017, Step Pharma and Kyushu Tong "hand in hand" set up a step-by-step Kyushu Tong into the pharmacy custody, and later turned to specialized chain pharmacy, was once a good word in the industryAt that time step pharmaceutical want to establishdrugdistribution logistics network, and Kyushu Tong also want to hold a tight step "thigh" to further open up the territory, open more stores, ride the pharmacy hosted by the east wind, the two sides hit the ground, agreed cooperation period of ten yearsBut less than three years after the "ten-year contract", Step Pharma is determined to leaveOn July 7, the reporter contacted Step Pharma and Kyushu Tong on matters related to the cooperation between the two sidesStep Pharmaceuticals replied that after the sale of the shares of Step Kyushu Tong, step pharmaceutical performance will not be affected, has now withdrawn from the pharmacy business, as to whether the future will continue to lay out is still unknownKyushu Tong told reporters that the step of Kyushu Tong is only a small part of the Kyushu Tong business sector, the completion of the share acquisition of Kyushu Tong's performance will not have a significant impactAs of the close on July 7, the total market value of Step Pharma and Kyushu Tong were more than 30 billion yuan, while the registered capital of The Step Kyushu Tong was no more than 100 million yuanFor both sides, the tie-up is more of a test for new business, but the exit of Step Pharma today is a bit bleak compared to the initial ambitionCooperation in a wave of three folds
in the context of medical reform, at that time step of pharmaceutical and Kyushu Tong cooperation is logical 　　On the one hand, eliminating hospital drug credits and encouraging the outflow of prescription drugs have given retail pharmacies more room to sell On the other hand, the volume of procurement will be a large number of pharmaceutical companies out of the hospital market, prompting pharmaceutical companies to sell sales channels to retail pharmacies 　　Step Pharmaceutical soldering is the leader in the field of cardiovascular medicine, in recent years under the trend of tightening the medical insurance reimbursement of traditional Chinese medicine, step-by-step pharmaceutical is eager to maintain the sales growth of its main products 　　Kyushu Tong is the country's largest private pharmaceutical circulation enterprise , with a better logistics system and terminal resources, want to strengthen the layout of retail pharmacies is also a matter of course 　　But the seemingly reasonable co-operation didn't work well 　　At first, the business selected by the Step Kyushu Pass was pharmacy hosting Pharmacy custody refers to the medical institutions in the case of the same ownership of the pharmacy, the medical institutions to its pharmacy to the pharmaceutical enterprises for paid operation and management 　　Kyushu Tong Group Hospital Division General Manager Yang Wei has said that step-by-step pharmaceutical has a strong marketing network and hospital resources throughout the country, and Kyushu Tong also has a strong logistics system and core logistics management technology throughout the country Together, the two can manage the hospital's drug supply chain through the pharmacy custody model, and solve the pain points of various medical institutions in pharmacy and inventory management, which combine the competitiveness of the two in the market better than their peers 　　But in July 2017, Guangdong Province drafted the "Antitrust Enforcement Guide for Pharmacy Custody Practices", which called for a monopoly to stop pharmacy custody Immediately after, Shandong Province, Qinghai Province, Shanghai, Beijing has also issued a ban on pharmacy trusteeship 　　The failure of the transition to a professional pharmacy pharmacy trusteeship does not work, on June 20, 2018, the step-by-step Kyushu Tong officially transferred to the professional pharmacy, the medical institution pharmacy hosting business model (including drugs, supplies, Chinese medicine, such as centralized distribution) adjusted to the professional pharmacy business model (including professional social pharmacy, DTP pharmacy, hospital side pharmacy, hospital side clinic, etc.) 　　In December 2018, Step Pharma and Kyushu Tong issued the "Announcement on The Progress of Foreign Investment", continued to upgrade cooperation, announced that 31 provinces in the country and other relevant parties to jointly invest in 42 nine-step large pharmacies, the average investment amount of not more than 2 million yuan, the total investment is not more than 84 million yuan, step-by-step Kyushu Tong holds 60%-70% of each nine-step large pharmacy 　　At the time, it was widely believed that a professional pharmacy was a smarter option than pharmacy hosting, and Step Pharma was likely to be the biggest winner of the partnership 　　A professional pharmacy is a pharmacy that provides professional services to patients, and after a patient has a prescription in a hospital, the pharmacy delivers the medicine to the door at a time and place specified by the patient or family member, and cares about and tracks the patient's medication progress, provides professional services such as medication counseling Chronic disease management is the core business category of professional pharmacies 　　Step pharmaceutical main products brain-center capsules, Danhong injection, steady heart particles are cardiovascular disease drugs According to the China Cardiovascular Disease Report 2018, the number of cardiovascular diseases in China is about 290 million, and common cardiovascular diseases are mostly chronic chronic diseases, which are the dominant diseases of traditional Chinese medicine The large patient base and the long-term stability of drug demand, which is fully in line with the sales demand of step-by-step pharmaceutical products and professional pharmacies 　　But a paper transfer announcement, declared the complete failure of this cooperation 　　Single business difficult logistics system Shenzhen ZhongJinhua Venture Fund Chairman Yan Tao in an interview on July 7, said that the main reason for the step of pharmaceutical transfer step KyushuTong shares is less than expected, professional pharmacies to step-by-step pharmaceutical's main business growth help is not big 　　According to Step Pharma's financial results, the total revenue of Step Pharma in 2019 was RMB14,255 million, while its central cerebrovascular business revenue reached RMB11,394 million, accounting for 80% of the total revenue 　　Although the net profit of Step Pharma was stable at between RMB1.5 billion and RMB1.5billion during 2017-2019, sales of the main products such as the Brain Heart Pass capsule, the steady-heart particles, and the Danhong injection continued to decline 　　In 2017, the revenue of the four products of the brain-center capsule, steady heart particle, danhong injection and grain red injection amounted to 9,944 million yuan, compared with 9.143 billion yuan in 2018 In 2019, the total revenue of the six products of the brain-pass capsule, stable particles, Danhong injection, glutamate injection, compound cerebral peptide nucleolipid injection and compound peptide injection was RMB 10,308 million 　　In theory, the number of patients with cardiovascular disease and the need for long-term medication, the establishment of a professional pharmacy next to the community or hospital has a stable customer base, but the distribution of patients is also very scattered, which means opening as many stores as possible, but the number of patients in a community often can not support the normal operation of a pharmacy, which makes the cost ratio very low "Step Pharmaceutical's single main business can not support a huge logistics system." 　　In Yan Tao's view, the biggest problem with step-by-step pharmaceutical is to put too much money into sales, ignoring research and development 　　Previously, Step Pharma declared to be "China's Johnson and Johnson, the world's step." 　　According to the 2019 financial results, the sales expenses of Step Pharma reached 8.08 billion yuan, accounting for 56.68 percent of total revenue, research and development expenses were only 505 million yuan, accounting for only 3.5 percent of total revenue, while Johnson and Johnson's pharmaceutical segment 2019 Annual revenue of $42.198 billion, research and development investment of $11.355 billion, accounting for 26.9% of total revenue
"For drugs, the decision to buy patients is always therapeutic, marketing is good, can only be a one-time performance." Only by investing in research and development to improve efficacy can patients be retained "I'm going to be