Shanghai Pharmaceutical Eye Capital operates frequently Investors question the performance of share prices

From the Shanghai Pharmaceutical Shareholders' Meeting, as well as the Internet giant's merger trend, prescription outflow market has become the pharmaceutical industry's "must-win land." Today, this newspaper focuses on this industry, hoping that investors can observe, analyze and study the industry, not to lose the opportunity.
of June 26, the 2017 Annual General Meeting of Shanghai Pharmaceuticals was held at Fenglin International Building in Shanghai. Shanghai's 37-degree heat also couldn't stop shareholder enthusiasm - more than 80 shareholders from all over the country came to the scene not far away, as well as institutional investors who had come to play "flying".the enthusiasm of
shareholders for Shanghai Pharmaceuticals has nothing to do with its series of eye-catching capital operations: the acquisition of Kantle's China business, the further acquisition of 26.34% of the shares of Guangdong Tianpu Biopharmaceutical Co., Ltd., the shanghai New Century Pharmaceutical Co., Ltd., held by the controlling shareholder, Shanghai One Deda Pharmacy Chain Management Co., Ltd., and its participation in the initial public offering of China Tongtong Co., Ltd. in Hong Kong. In addition, Shanghai Pharma has been repeatedly reported to be buying overseas pharmaceutical assets.
, Shanghai Pharma's secondary market performance has failed to satisfy shareholders. Responding to investors' questions, Shanghai Pharmaceuticals said the company was a leader in drug research and development, production and manufacturing, but its share price performance was not in line with its performance. However, compared with the recent stock market rally, the Shanghai pharmaceutical market is doing quite well. The company is also considering increasing exchanges with investors, "Shanghai Pharmaceuticals from October 2016 to the present share price has risen by about 30%, but has not yet reached the desired target, and will continue to work hard to make the company better performance, better assets, but also to be able to afford the majority of shareholders."
Yanyan, an institutional investor from Beijing-based Anxin Investment Management Company, told Securities Daily at the scene: "I came here on a special business trip to attend the Shanghai Pharmaceutical Shareholders' Meeting. Shanghai medicine is still good, especially in the pharmaceutical industry is a leader in enterprises. From the core competitiveness, the company is constantly improving the research and development of innovative drugs and generic drugs, according to the company's public information, Shanghai Pharmaceuticals innovative drugs, generic drugs progress significantly accelerated, in the new environment of pharmaceutical reform, will continue to increase the company's profitability. Investment in Shanghai Pharmaceuticals should be based on the long-term, china's pharmaceutical market innovation reform, the company will highlight the significance of value investment. At
shareholders' meeting, Shanghai Pharmaceuticals also responded to many hot spots in the market, including pharmacy custody, pharmaceutical circulation industry integration, generic drug consistency evaluation, research and development innovation, etc.response to pharmacy trusteeship:is doing supply chain services
So far this year, the ban on pharmacy hosting has had a greater impact on the businesses in the industry.
as an important domestic pharmaceutical market, the Shanghai Municipal Health and Planning Commission, the Shanghai Municipal Regulatory Commission, officially issued on June 1st the Notice on further strengthening the management of pharmaceuticals in the city to promote the transformation and development of pharmaceutical services. It is clearly mentioned that in the process of optimizing the pharmacy supply chain, public medical institutions should carefully set the mode of cooperation with pharmaceutical enterprises, and should not carry out pharmacy "hosting" or similar business cooperation with the enterprises concerned to guard against the legal and policy risks that cooperation may bring. We should adhere to the principles of openness, fairness, fairness and transparency, implement the mechanism of separating medicines and breaking down and divided by pharmaceutical supplements, carefully evaluate the optimal mode of cooperation in the pharmacy supply chain, make them conform to relevant national laws and regulations, and cut off the relationship between drug revenue and the interests of medical institutions and doctors.
it is worth mentioning that pharmacy hosting is also one of the businesses of Shanghai Pharmaceuticals. Shanghai Pharma's 2017 Annual Report shows that in order to maintain the profitability of its distribution business, the company continues to optimize its product structure, promote Lean Six Sigma management to strengthen cost control, and further expand the hospital supply chain innovation services, a total of 226 hospital pharmacies, 97 new.
changes in policy affect the conduct of the company's business?
, president of Shanghai Pharmaceuticals, said in an interview with Securities Daily that what the company is doing is not traditional pharmacy hosting, but an extension of the supply chain, which is very popular with hospitals.
, Shanghai pharmaceutical industry has also made a further explanation to reporters: there is no official definition of pharmacy trusteeship. Now the community understands that pharmacy trusteeship is the model of agency management, but the company does not do the traditional sense of agency business model, the company and the hospital there is no payment of trusteeship fees. Originally to do this business enterprise profit is not much, if the company can not afford to pay a certain fee. Before the policy was promulgated, the company internally judged that the traditional pharmacy custody model is not in line with the direction of national drug reform, because there is still no cut off and the hospital's interest chain, the future must be controlled, the company is now doing is to change the service market. Do this business company does not have the right to purchase, there is no downstream suppliers, the company is to provide services to hospitals in exchange for the market, which is also in line with the direction of medical reform.the expansion of the marketing network the acquisition of Kantle to achieve a smooth transition
under the influence of the two-vote system, the pharmaceutical circulation industry ushered in integration. Against this background, Shanghai Medicine has also begun to buy the rhythm of buying.
2017 annual report shows a cash-for-payment of $576 million for Cardinal Health (L) Co. Ltd. ("Kandle Malaysia") has a 100% stake, and through Kantle Malaysia indirectly owns all of its Chinese business entities established in Hong Kong and China, invests 297 million yuan to acquire a 51% stake in Sichuan Shenyu Pharmaceutical Co., Ltd. (now renamed "Sing pharmaceutical holding Sichuan Co., Ltd.") and invests 579 million yuan to acquire a 99% stake in Xuzhou Pharmaceutical Co., Ltd.
, The acquisition of Kantle by Shanghai Pharmaceuticals has attracted great attention from the market. According to the Ministry of Commerce's latest ranking of the top 100 main business income of pharmaceutical wholesale enterprises in 2017, Kantle ranked ninth, while Kantle ranked eighth in 2016. If you add up the data of Kantle and Shanghai Pharmaceuticals, the total of the two already exceeds that of the second-ranked China Resources Pharmaceuticals.
is the integration of Shanghai Medicine and Kantle now? Shanghai Pharma responded that on November 15, 2017, the company signed an acquisition agreement with Kantle Group of the United States to complete the delivery on February 2 this year, and so far, the entire Kantle delivery business has achieved a smooth transition. First-quarter results were very stable, with total sales reaching 3 billion yuan in February-March, maintaining steady growth compared with the same period last year. "With the integration of the entire Kantle business segment, including management integration, I believe that the acquisition of Kantle, through the improvement of the operational efficiency of Shanghai Pharma, can further improve the operation of the entire Kantle, while Kantle's assets into Shanghai Pharmaceuticals, especially the provincial platform business has been well released, and strive to achieve a significant increase in the profitability of Kantle in 3 to 5 years."
Shanghai Pharma also said that since the acquisition of Kantle last year, the company's marketing network has expanded to 24 provinces, according to the three-year planning target, hoping to expand to 28 provinces and cities across China. The company hopes to speed up the overall market layout with the help of a two-vote system.
Shanghai Pharmaceuticals believes that the current concentration of the pharmaceutical distribution industry is not high, China National Pharmaceuticals, China Resources plus Shanghai Pharmaceuticals accounted for 40% of the entire market, while the top three U.S. companies accounted for more than 90% of the market share. In the future, the concentration of the distribution sector will be further strengthened, the future company will also increase the intensity of mergers and acquisitions, do a wide range of deep. seize the opportunity of e-prescription outflow said the opportunity to acquire
in the opportunity of e-prescription outflow, listed companies have also accelerated the pace of acquisition of retail pharmacies.
Shanghai Pharmaceuticals 2017 Annual Report shows that the company's retail business sales scale in the forefront of the national pharmaceutical retail industry, distributed in 16 provinces and cities across the country, the total number of retail pharmacies more than 1892, its Shanghai Fahrenheit pharmacy is one of the largest pharmaceutical retail companies in East China, its Shanghai Pharmaceutical Cloud Health is committed to creating an innovative pharmaceutical e-commerce model based on electronic prescription transfer. The company's retail enterprises in strict accordance with national norms engaged in drug retailing business, through the pharmaceutical retail chain pharmacies, medical institutions side pharmacies, DTP pharmacies three types of pharmacy service terminal consumers.
, president of Shanghai Pharmaceuticals, said in an exchange with investors that there was an opportunity to also participate in the merger of retail pharmacies. "We're doing a great job with cloud health right now, and there's room for consolidation in e-prescriptions in the future. The company is looking at how to effectively combine online and offline."
Shanghai Pharmaceuticals, the company's above drug cloud health for the development of prescription drugs new retail "Internet Plus" business platform, signed a strategic cooperation agreement with Tencent, the initial formation of prescription access and management, realization and distribution and prescription value-added services of prescription drugs new retail value chain closed. Electronic prescription transfer end, the reporting period to achieve docking at all levels of medical institutions 214, processing more than 2 million electronic prescriptions. Prescription distribution side, with the addition of Kantry's DTP stores in China, further established the company's largest domestic DTP service network status, the total number of stores more than 70. The combination of and
has continued to advance
against the background of encouraging the development of innovative drugs and promoting the evaluation of generics consistency, Shanghai Pharmaceutical's investment in this field has also attracted investors' attention.
's 2017 annual report shows that the company invested a total of 79.35 million yuan in research and development last year, up 20.79 percent year-on-year, accounting for 5.27 percent of industrial sales revenue. Of these, 21.14 percent invested in innovative drug research and development, 22.59 percent in generic drug research and development, 35.43 percent in secondary development of existing products, and 20.84 percent in generic drug quality and efficacy consistency evaluation. The company's innovative drug research and development focus on anti-tumor, systemic immunity and cardiovascular field. The company continues to adopt a combination of generic research and development strategy, generic drug research and development with consistent evaluation as the core.
at the shareholders' meeting, Shanghai Pharmaceuticals presented the company's research and development: the company will have a total of 10 new innovative drugs in 2018, focusing on malignant tumors, autoimmune diseases, cardiovascular and metabolic diseases. In a consistent evaluation, the company expects to be able to declare 30 to 40 varieties by the end of 2018.
Shanghai Pharma said that in the context of the great changes in China's pharmaceutical industry, the company's development strategy is that both the commercial sector and the industrial sector, should take the road of innovation and development, international development, integration and development, and always maintain a leading position in the country. (Securities Daily)