In 2022, the expansion of large chain pharmacies is still accelerating!

Recently, Jiuzhitang announced that it signed an Equity Transfer Framework Agreement with Yifeng Pharmacy
.
According to the agreement, Jiuzhitang intends to sell its 51% stake in Hunan Jiuzhitang Pharmaceutical Co.
, Ltd.
(hereinafter referred to as "Hunan Jiuzhitang Pharmaceutical") to Yifeng Pharmacy at a consideration of RMB 204 million
.
In addition to the asset sale, Li Zhenguo, the controlling shareholder and chairman of Jiuzhitang, also plans to transfer 5.
00% of the shares he holds in Jiuzhitang to Yifeng Pharmacy.
The total consideration for this transaction is 428 million yuan, and Yifeng Pharmacy may become the fourth largest shareholder of Jiuzhitang
.
In fact, in recent years, the reorganization and merger of many large chain pharmacies has been staged in the industry.
Whether it is Yixintang, ordinary people who were listed earlier, or Dashenlin, Jianzhijia, and Shuyu civilians who have entered the capital market, they have all regarded mergers and acquisitions as a company opening.
An important plan to expand territory
.
Since the beginning of this year, the expansion of large chain drugstores has been accelerating.
In addition to Yifeng, a large number of chain drugstores are accelerating their expansion through mergers and acquisitions
.
For example, on March 6, the People's Pharmacy Chain Co.
, Ltd.
(hereinafter referred to as the "Company" or "People") announced that it planned to acquire Hunan Huairen held by 14 counterparties including Lin Chengxiong and Chen Yuping for 1.
637 billion yuan.
About 71.
96% of the equity of Great Health Industry Development Co.
, Ltd.
(hereinafter referred to as "Huairen Great Health")
.
On February 28, Yunnan Jianzhijia issued an announcement on planning major asset restructuring and signing an agreement of intent for equity acquisition
.
The announcement stated that it intends to acquire 80%-100% of the shares of Tangren Pharmaceutical held by the shareholders of Hebei Tangren Pharmaceutical after the reorganization by paying cash
.
On the whole, the current expansion of chain pharmacies mainly through three ways: self-operation, mergers and acquisitions and franchise
.
It is understood that six chain pharmacies including Yixintang, Sinopharm Accord, Dashenlin, Yifeng Pharmacy, Common People, and Jiuzhoutong are all involved in the self-operated model
.
In addition, the common people, Dashenlin, Sinopharm Accord and Yifeng Pharmacy also resort to mergers and acquisitions and franchise models to achieve store expansion, while Kyushu mainly focuses on franchises
.
At present, the total number of stores of chain pharmacies such as Sinopharm Accord, Yifeng Pharmacy, and Jointown is increasing year by year through self-operation, franchise, mergers and acquisitions, etc.

.
According to the data, as of the third quarter of 2021, the total number of stores of ordinary people, Dashenlin, and Yifeng pharmacies have increased to 8,163, 7,610, and 7,246, respectively
.
As of the end of 2021, the total number of Sinopharm Accord and Yixintang stores has increased to 8,798 and 8,560, respectively
.
However, it should be noted that while chain pharmacies have accelerated the pace of mergers and acquisitions, some drawbacks have also begun to emerge
.
Such a move directly boosted the company's goodwill
.
It is reported that the goodwill growth of the common people, Sinopharm Accord and Yifeng Pharmacy is quite significant
.
For example, the goodwill of the two companies in 2015 was 760 million yuan and 284 million yuan respectively, and as of the first three quarters of 2021, the value has increased to 3.
638 billion yuan and 3.
63 billion yuan respectively
.
In addition to the surge in goodwill, it is also obvious that in recent years, many chain pharmacies have received news of administrative penalties for their stores
.
According to the author's sorting out, the reasons for punishment include selling inferior drugs, violating the regulations on clearly marked prices, and failing to sell prescription drugs with prescriptions in accordance with regulations
.
In this regard, the industry believes that relevant enterprises need to accelerate their transformation and develop towards diversification and specialization
.
It is reported that as early as October 28, 2021, the Ministry of Commerce issued the "Guiding Opinions on Promoting the High-quality Development of the Pharmaceutical Circulation Industry during the "14th Five-Year Plan" Period", which clearly mentioned that by 2025, it is necessary to cultivate the formation of 5- There are 10 specialized and diversified pharmaceutical retail chain enterprises with a value of over 50 billion yuan.
The annual sales of the top 100 pharmaceutical retail enterprises account for more than 65% of the total pharmaceutical retail market, and the pharmaceutical retail chain rate is close to 70%
.
With the help of this policy, the industry generally believes that the competition in the pharmaceutical retail market will become more intense in the future, and the transformation and upgrading of major chain pharmacies also need to be accelerated
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.