Shanghai Pharma intends to purchase Kantre's China business plus the field of pharmaceutical circulation

Shanghai Pharma has finally publicly confirmed its interest in pharmaceutical distribution giant Kantle.
Shanghai Pharma announced on October 19th that it had confirmed its intention to acquire the Chinese business of multinational pharmaceutical distribution giant Cardinal Health Inc. (hereinafter referred to as Kantle China) and said it had made two rounds of offers.
There are industry insiders to the "Daily Economic News" reporter analysis that Kantle China in the chain of pharmacies and specialty pharmacies have an advantage, which may be the reason why Shanghai Medicine sees it, in addition, its agent of many imported drugs also have great value. In the field of pharmaceutical circulation, in recent years, including Ali, JD.com, Shunfeng have been laid out.China revenue of the country's eighth
Shanghai Pharmaceuticals confirmed that the company has submitted the first and second round of quotations to Kantle on July 21 and September 15 this year, respectively. However, as of the date of the announcement, the project was still in the non-exclusive bidding phase.
Regarding the prospect of the acquisition, Shanghai Pharma said it was uncertain whether it would be able to bid for the project, and that information such as the terms of the bid, including the amount of the bid, as well as Kantle's specific operations and financial position, could not be disclosed because of confidentiality requirements involving trade secrets and bidding procedures.
is one of the top three pharmaceutical circulation industry in the United States. It is understood that Kantle's Business in China is divided into five sectors, namely: pharmaceutical distribution, medical device distribution, hospital direct marketing, speciality drugs, as well as speciality pharmacy and commercial technology sector. According to the Statistical Analysis Report on the Operation of the Pharmaceutical Circulation Industry (2016) published by the Ministry of Commerce, Kantle China's business achieved main business revenue of about RMB25.4 billion in 2016, ranking eighth in the country.
Kantle China has 14 direct sales companies and 17 distribution operations centers, a network of distributors covering 322 cities, serving nearly 11,000 downstream customers such as medical institutions, and 30 DTP pharmacies.
believes that Kantre China is in line with Shanghai Pharmaceuticals' strategic goal of further expanding its distribution advantages, speeding up its national distribution and enhancing its service content. If we can successfully bid for Kantle China, it will significantly enhance the industrial status of Shanghai Pharmaceuticals in China's pharmaceutical circulation industry, further consolidate and expand the company's leading position in the country's import product agents, professional third-party pharmaceutical logistics, DTP professional pharmacies, medical device distribution and other key sub-sectors, to achieve considerable synergies.
Third-party pharmaceutical service system Mesconley founder Slichen October 19 to the "Daily Economic News" reporter analysis that Kantle China in the bidding and distribution business does not have much advantage, and its main advantage is in specialty and chain pharmacies. Compared with Chinese medicine and China Resources Medicine, Shanghai Medicine is weak in chain pharmacies. At the same time, specialist pharmacies are the future trend, with great potential value. In addition, Kantle as a multinational enterprise, agent of a lot of foreign products.Magic companies are looking to the field of pharmaceutical circulation
At present, a new round of medical reform has entered a critical period, reform and improvement of the drug circulation system is an important part of deepening the reform of the medical and health system, is an important part of the reform of medical, medical and pharmaceutical linkage. On February 9, the General Office of the State Council issued "Several Opinions on Further Reforming and Perfecting the Policy on the Production and Circulation of Drugs", encouraging the integration of drug storage and transportation resources, realizing multi-warehouse coordination, supporting cross-regional distribution of drug distribution enterprises, and accelerating the formation of urban and rural drug distribution networks supplemented by large and medium-sized enterprises.
Two-vote system" after the implementation of drugs from the production enterprises to circulation enterprises to open an invoice, circulation enterprises to medical institutions to open an invoice, greatly compressed the drug circulation link, rapidly improve the concentration of the industry, accelerate the pharmaceutical logistics information, standardization process, promote the industry-wide service innovation and development, so that the original complex field of pharmaceutical circulation has been simplified.
recent years, including Ali, JD.com and Shunfeng and other giants have also entered the field of pharmaceutical circulation. On August 29, JD.com Logistics Pharmaceutical Cloud Warehouse, Pharmaceutical Logistics Supply Chain Solutions were officially unveiled, the rookie network has also incorporated pharmaceutical storage into the national logistics system, Shunfeng Holdings in the pharmaceutical logistics business sector has several pharmaceutical cold storage, a number of pharmaceutical trunk lines, through the Northeast, North China, East China, South China, Central China core cities.
Shi Lichen believes that the current pharmaceutical circulation is regional distribution, designated by the municipal distribution business, so on the one hand, all pharmaceutical commercial companies are establishing local regional distribution companies, warehousing and logistics;
To Shunfeng as an example, Shi Lichen said that the current Shunfeng upstream and downstream resources are still less, but Shunfeng in the management system is better than the State Pharmaceutical Holdings and other traditional pharmaceutical commercial enterprises, its current business is mainly from pharmaceutical enterprises to local distribution business distribution, in addition to the management system advantages, Shunfeng is currently charged by piece, compared with the past point-to-point charges, has a considerable price advantage. (Daily Economic News Network)