New pattern!

After the implementation of the policies of "separation of licenses and licenses" and "removal of distance between pharmacies", industry competition has intensified, and ordinary people have benefited, while life in small pharmacies has become even more difficult

Two provinces issued documents to deepen the reform of "separation of licenses and licenses"

On July 23, the Shaanxi Food and Drug Administration issued the "Notice on Issuing the Implementation Plan for Deepening the Reform of "Separation of Licenses and Licenses" to Further Stimulate the Development of Market Entities" (hereinafter referred to as the "Notice")

The notice requires that the reform of the examination and approval system be promoted by classification, one item of examination and approval items will be directly cancelled within the province, and three items will be directly cancelled within the scope of the free trade zone

After the cancellation of "radiopharmaceuticals used by medical institutions (Class I and II)", "approval for the establishment of pharmaceutical retail enterprises" and "approval for the establishment of pharmaceutical wholesale enterprises" in the free trade zone, applications for the establishment of pharmaceutical wholesale and retail enterprises in the pilot free trade zone will no longer be submitted to The drug regulatory department applies for approval of preparations for establishment and directly applies for a drug business license

In addition, the notice also changed the approval of "drug Internet information services" and "medical device Internet information services" to filing management.

The notice stated that in terms of "implementing the notification undertaking", Shaanxi Province has already launched the whole province in 2020

If a drug retail enterprise applies for voluntary notification and acceptance, it shall make a commitment and submit materials as required.

A review found that, in addition to Shaanxi, Hebei Province has begun to implement measures to deepen the “separation of licenses and licenses” to optimize the process and efficiency of pharmacies

On July 22, the Hebei Provincial Food and Drug Administration issued a document requesting the implementation of the deepening of the reform of "separation of licenses and licenses", vigorously promoting post-license reduction and simplifying approvals, and canceling the "approval for the establishment of pharmaceutical retail enterprises" in accordance with the law

In the pilot area of ​​the Pilot Free Trade Zone, the "drug internet information service approval" processing method was changed from approval to filing.

The lowering of the threshold leads to intensified competition, making life difficult for small and medium pharmacies

After the implementation of the "separation of licenses and licenses" policy, the number of pharmacies' certification materials has been greatly reduced, effectively shortening the approval process of pharmacies and improving the efficiency of certification

An executive of a pharmacy in Nanjing stated that it took about 81 working days for each license to open a retail pharmacy, but it will be shortened to 5 working days after the implementation of the policy; the number of application materials has been reduced from 84 to 29, which is a big deal.

However, it should be noted that "separation of licenses and licenses" facilitates the approval of pharmacies and makes it easier to open a store.

Shaanxi Guangjitang Pharmaceutical Group Li Feng said that the national pharmacy industry is currently "involved", with major pharmacies vying for the stock market and competition is very fierce

"Separation of licenses and licenses" lowers the threshold for pharmacies to open stores, and will further enhance the level of industry competition.

Intensified competition among chain pharmacies makes it difficult for small and medium pharmacies to keep up

"Separation of licenses and licenses" lowers the threshold for opening stores and intensifies competition in the pharmacy industry.

At present, many regions have issued the policy of "removing the distance between pharmacies"
.

On June 1, the Beijing Municipal Food and Drug Administration issued a document mentioning that new drug retail companies should be abolished to limit the feasible distance of more than 350 meters between existing drug retail companies, and that new drug retail companies or original drug companies should be abolished.
Where a retail enterprise applies to change its registered address, the distance from an existing pharmacy will no longer be a condition for permit review
.

On February 26, the Shanghai Food and Drug Administration stated to the media that Shanghai’s newly opened pharmacies are not subject to the 300-meter spacing restriction.
If the original pharmaceutical retail company applies for a change of registered address, the distance to a nearby pharmacy will no longer be a condition for permit review
.

Li Junguo, vice president of Zhongkang Digital Technology Co.
, Ltd.
, told China Economic Net that after the removal of spacing restrictions, the areas with the greatest impact are Shanghai and Beijing.
The opening of new pharmacies is closely related to the regional economic aggregate and the allocation of medical resources
.

"After the spacing restriction is lifted, the number of pharmacies will increase and pharmacy competition will intensify, which is a good thing for consumers
.
" Xu Yuping, chairman of Jiangsu Jiahuitang Pharmaceutical Co.
, Ltd.
, continued.
Prior to the spacing restrictions, the life of pharmacies was relatively "stable
.
" The implementation of the New Deal will definitely break this "stability", and industry competition will intensify.
Only when there is competition, innovation can be achieved, and innovation will accelerate the development of the industry
.

However, from another point of view, the "removal of pharmacy distance limits" has also intensified competition among chain companies.
In addition, the current tightening of regulatory policies and "centralized procurement" have led to lower drug prices.
This means that there are "fewer resources, less funds, Small and medium pharmacies with low efficiency are more difficult to keep up with the pace of competition from chain enterprises
.

According to media reports, since Shanghai removed the pharmacy distance limit, some pharmacies have begun to close their stores voluntarily.
The main reason is poor profitability, but the cost of compliance is high.
Non-compliant operations will be fined, which in turn will lower the profitability level and become vicious.
Circulation, eventually making some pharmacies unable to survive
.

Some insiders pointed out that after the pharmacy limit is lifted, other chain stores will be crowded into the vicinity of small pharmacies to share the flow of customers around.
Pharmacies with poor profitability are in an even worse situation and life is very difficult
.