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Many provinces issued documents to promote the intensive development of pharmacies, and single stores will meet the tide of elimination?

 Last Update: 2023-01-05
 Source: Internet
 Author: User

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Recently, the Jiangxi Provincial Drug Administration issued the "Opinions on Supporting the Development of Pharmaceutical Retail Chain Enterprises (Trial)" (hereinafter referred to as the "Opinions"), launching 15 measures to support and encourage the development of
pharmaceutical retail chain enterprises in the province.

The 15 measures focus on improving the drug retail chain rate and standardization level, focusing on supporting large wholesale enterprises and large pharmaceutical retail chain enterprise groups to integrate single pharmacies through various forms, allowing pharmaceutical retail chain enterprises to implement "multi-warehouse coordination", and supporting the transfer of drugs between stores of
the same retail chain enterprise as needed.

The Jiangxi Provincial Food and Drug Administration proposed to support pharmaceutical retail chain enterprises to set up 24-hour vending machines in large public places, and support chain supermarkets to sell Class B over-the-counter drugs to facilitate the purchase of drugs
by the public.
Support pharmaceutical retail chain enterprises to carry out remote pharmacy services and prescription business for licensed pharmacists, and encourage pharmaceutical retail chain headquarters to set up remote pharmacy service centers
.
Support the electronic management of data of pharmaceutical retail chain enterprises, encourage chain enterprises to use the "Internet +" sales method to sell drugs, implement a chronic disease prescription retention system, and achieve convenient services
.

01Encourage large chains to integrate single pharmacies through various forms

According to the "Drug Supervision and Administration Statistical Report (Third Quarter of 2021)" released by the State Food and Drug Administration, as of the end of September 2021, there were 13,292 pharmacies in Jiangxi Province, including 101 chain enterprises, 5,952 chain pharmacies, and 7,340 single pharmacies, with a chain rate of 44.
78%.

In order to promote the intensive and large-scale development of pharmacies, the Opinions propose to support pharmaceutical wholesale enterprises to apply for the "Drug Business License" for drug chain retail in accordance with the business mode of batch and zero, and encourage pharmaceutical wholesale enterprises to establish pharmaceutical retail chain enterprises
by relying on existing retail pharmacies or merging individual retail pharmacies.
Support pharmaceutical retail chain enterprises to integrate other pharmaceutical retail chain enterprises or single pharmacies
in the form of mergers, reorganizations, franchises, etc.

Encourage large pharmaceutical retail chain enterprise groups to integrate single pharmacies through various forms, standardize the operation and management of pharmacies, increase the allocation of drugs for daily use in pharmacies, and ensure the security
of drug supply at last-mile terminals.
Relax the application requirements for Class B OTC drug retail enterprises in rural and remote areas, and adjust the business area from not less than 20 square meters to not less than 15 square meters, so as to ensure that residents in remote areas have access
to basic medicines.

Where a pharmaceutical retail chain enterprise of the same legal person acquires another pharmaceutical retail chain enterprise by acquisition, merger, franchise or holding, it may directly change the stores of the acquired pharmaceutical retail chain enterprise and cancel the "Drug Business License"
of the headquarters of the acquired pharmaceutical retail chain enterprise.

When a single pharmacy is acquired or merged by a pharmaceutical retail chain enterprise, if only the business entity changes, and the original entity's business premises, warehouse addresses, facilities and equipment, quality managers and other key position personnel have not changed, the on-site inspection and acceptance
will no longer be carried out when the "Drug Business License" is re-processed.
Its "Drug Business License" can be directly changed to the "Drug Business License" of the branch (the materials to be submitted for the change shall be required according to the content of the Licensing Matters Handling Guide).

Under the condition that the first operation information and bills are complete, the original surplus drugs can be transferred to the new resource management system (ERP or GSP system) to continue sales
.

02 Many provinces issued documents to promote the intensive and standardized development of pharmacies

In addition to Jiangxi, since the beginning of this year, Guangdong, Sichuan, Hebei and other provinces have issued relevant measures to support and encourage the province's pharmaceutical retail chain operations, and promote the large-scale, intensive and standardized development
of pharmaceutical retail operations.

Taking Hebei as an example, the "Opinions on Supporting the Development of Pharmaceutical Retail Chain Enterprises" issued by the Hebei Provincial Food and Drug Administration proposes to support pharmaceutical wholesale enterprises to establish pharmaceutical retail chain enterprises
by relying on existing retail pharmacies or merging individual retail pharmacies.
Support pharmaceutical retail chain enterprises to integrate other pharmaceutical retail chain enterprises or single pharmacies
in the form of mergers, reorganizations, franchises, etc.
Support pharmaceutical retail enterprises to establish pharmaceutical retail chain enterprises
through mergers, reorganizations, etc.

It is inevitable that
the industry pattern will be further concentrated.
The "Guiding Opinions on Promoting the High-quality Development of the Pharmaceutical Circulation Industry during the 14th Five-Year Plan" Period issued by the Ministry of Commerce pointed out that by 2025, 5~10 specialized and diversified pharmaceutical retail chain enterprises
exceeding 50 billion yuan will be cultivated.
The annual sales of the top 100 pharmaceutical retail enterprises account for more than 65% of the total pharmaceutical retail market; The drug retail chain rate is close to 70%.

According to the "2021 Statistical Analysis Report on the Operation of the Drug Circulation Industry" released by the Ministry of Commerce, in 2021, the retail chain rate was 57.
2%, an increase of 0.
7 percentage points
over the previous year.
Compared with 2011, the retail chain rate increased from 34.
3 to 57.
2%, an increase of 22.
9 percentage points
.

The total sales of the top 100 pharmaceutical retail enterprises by sales was 191.
2 billion yuan, accounting for 35.
6% of the total retail market in the country after deducting incomparable factors, an increase of 0.
3 percentage points
year-on-year.

Among them, the total sales of the top 10 were 114.
7 billion yuan, accounting for 21.
1% of the total retail market in China, the same as the previous year; The total sales volume of the TOP 20 was 139.
2 billion yuan, accounting for 25.
5% of the total retail market in China, and after deducting incomparable factors, it increased by 0.
2 percentage points year-on-year; The total sales volume of the TOP 50 was 172.
9 billion yuan, accounting for 31.
7% of the total retail market in China, and the year-on-year increase of 0.
3 percentage points
after deducting non-comparable factors.

At present, whether it is the chain rate or the market share of TOP100 chain sales, there is still a certain gap compared with the industry target in 2025, and to catch up with the aforementioned goals, it means that in the next 2-3 years, the intensive scale process of the industry will accelerate, and single pharmacies will face greater survival pressure
.

03How do monomer pharmacies survive?

The further standardization of supervision, the overall increase in operating costs, the price squeeze brought about by volume procurement, the cross-border competition of outsiders such as e-commerce, department stores, gas stations, and postal services, and the impact of capital have all brought great challenges
to the pharmacy industry.
For monomer pharmacies, the real question ahead is how to survive
.

Joining may be a good way
out.
Guangdong, Hebei and Jiangxi provinces have proposed to "support pharmaceutical retail chain enterprises to integrate other pharmaceutical retail chain enterprises or independent pharmacies in the form of mergers, reorganizations, franchises, etc.
", and independent pharmacies can seek further development
with the help of the resources of large chains.

At the same time, many individual pharmacies take the initiative to seek changes and adapt to the tide
of "centralized procurement".
Previously, the Jiangsu Provincial Medical Insurance Bureau issued the "Announcement on the Qualification Confirmation Results of the First Batch of Designated Retail Pharmacies Participating in Volume-Based Procurement of Medical Insurance", and 2,519 pharmacies were approved to participate in volume-based procurement and sunshine procurement
.
Among them, single pharmacies accounted for 65.
3%, with 1646.

According to the "Medical Insurance Designated Retail Pharmacy Participation in Volume Procurement and Sunshine Procurement Plan (Draft for Comments)" issued by the Jiangsu Provincial Medical Insurance Bureau, it is proposed that the selected drugs selected by the province's platform are purchased by the designated pharmacy according to the online price and sold
at the "zero difference rate".
This also means that individual pharmacies actively embrace "the same price in hospital stores"
.

Although individual pharmacies are not as good as large chains in terms of bargaining power, capital and talent, pharmacies that can survive the storm must have practiced a set of "survival rules"
.
"Monoli pharmacies are actually tenacious
.
" One interviewee, who did not want to be named, believed that monomer pharmacies did not exist, but that their nature had changed
.

The biggest advantage of single pharmacies is that the ship is small and good to turn around, and the reasonable allocation of resources is obviously the core of its operation, such as in the control of costs, in the control of human resources, etc.
, the bosses have explored a set of models to deal with market challenges, and relying on years of business precipitation, "word of mouth" has also become one of
the "magic weapons" of their operation.

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