The latest ranking of pharmaceutical companies announced: State Control, China Resources, Jointown...

In the domestic pharmaceutical circulation, industry concentration continues to increase
.

01 Top 100 Pharmaceutical Distribution Companies

The Ministry of Commerce recently announced the "Statistical Analysis Report on the Operation of the Pharmaceutical Circulation Industry in 2020".
The document disclosed the top 100 ranking of the main business income of pharmaceutical wholesale companies in 2020
.

Among them, China National Pharmaceutical Group ranked first, followed by Shanghai Pharmaceuticals and China Resources Pharmaceuticals respectively ranked second and third, and Jointown followed closely fourth
.

In 2020, Sinopharm Group's Sinopharm Group's revenue from the pharmaceutical distribution segment was RMB 348.
29438 billion, accounting for 74.
18% of the total revenue of Sinopharm, an increase of 3.
25% from 337.
3163 billion in 2019
.

Shanghai Pharmaceuticals will achieve operating income of 191.
09 billion yuan in 2020, and the pharmaceutical business segment will achieve revenue of 168.
166 billion yuan, a year-on-year increase of 3.
12%
.

The total revenue of China Resources Pharmaceuticals in 2020 reached HK$200.
423 billion, of which the revenue of the pharmaceutical distribution segment accounted for 82.
0%, which was an increase from 81.
7% in 2019.
The specific revenue was HK$168.
832.
1 billion, a decrease of 1.
1% from 2019.
%
.

The annual report of Jointown Express shows that the company’s full-year operating income for 2020 is 110.
86 billion yuan, a year-on-year increase of 11.
42%.
The company’s net profit attributable to shareholders of listed companies is 3.
075 billion yuan, an increase of 78.
10% over the same period last year.
The profit was 1.
866 billion yuan, an increase of 22.
33% over the same period last year
.

In addition to these old big drug manufacturers, some of the company's pharmaceutical logistics company also made the list - for example, Shi Pharmaceutical Group in Hebei Province Cheng Pharmaceutical Co.
, Ltd.
, Sichuan Kelun Pharmaceutical Trade Group Co.
, Ltd.
, Harbin Pharmaceutical Group Pharmaceutical Co.
, Ltd.
and so on
.

02 Increased industry concentration

On the whole, the sales scale of the national drug distribution market will expand steadily in 2020, but the growth rate will slow down
.

In 2020, the main business income of the national pharmaceutical circulation direct reporting enterprises was 1821.
4 billion yuan, a year-on-year increase of 2.
8% after deducting incomparable factors, and the growth rate slowed down by 6.
8% year-on-year, accounting for about 85.
2% of the national pharmaceutical circulation market sales; total profit was 435 100 million yuan, excluding incomparable factors, an increase of 5.
4% year-on-year, the growth rate decreased by 2.
7 percentage points year-on-year; the average gross profit margin was 8.
6%, an increase of 0.
1 percentage point year-on-year
.

2016-2020 Sales Trends in the Pharmaceutical Distribution Industry

Image source: 2020 statistical analysis report on the operation of the pharmaceutical circulation industry

In addition to the slowdown in growth, the increase in industry concentration is another characteristic of the pharmaceutical circulation field
.

In recent years, the state has implemented policies such as the "two-invoice system", "VAT reform", and "quantity procurement", which objectively promoted the structural adjustment of the pharmaceutical industry and increased the concentration of the industry
.

The Blue Book of China's Pharmaceutical Distribution shows that in recent years, the proportion of large-scale pharmaceutical distribution companies in the overall business volume of the industry has increased year by year, and the business growth rate is higher than the industry average growth rate
.

Image source: Jointown 2020 Annual Report

For pharmaceutical distribution companies, larger scale means better development, and there is a certain trend of centralization
.

Pharmaceutical distribution companies charge a certain percentage of the drug delivery price.
Volume purchases reduce the price of drugs, and at the same time bring a larger delivery volume.
To adapt to this change, the distribution companies have higher requirements for distribution capabilities
.

03 High-quality development

As the concentration of the pharmaceutical circulation industry increases, companies must deeply integrate the pharmaceutical supply chain with the Internet to create a digital pharmaceutical circulation model to achieve higher distribution efficiency
.

Jointown's annual report shows that distribution companies use digital technology to create a more versatile supply chain B2B platform, build a flat, shared, and decentralized new distribution business pattern, and help brands and suppliers to quickly directly supply terminals, which can promote industry formation "Convergence effect" to rapidly increase business scale
.

The normalization of the volume procurement system requires a stronger terminal coverage of the company.
At the same time, the rise of the out-of-hospital market is also a new development direction for distribution companies
.

Compared with the normalized drugs that are purchased in quantities, more and more innovative drugs are on the market one after another.
The distribution of these high-value drugs has higher requirements and will produce higher benefits
.

Drug terminal sales in 2020 show that the sales of medical institutions are 1,185.

From the change in the proportion of drug sales terminal sales, it can be seen that the out-of-hospital market has become a new direction that cannot be ignored in the pharmaceutical field.

Attachment: Ranking of Top 100 Main Business Revenues of Pharmaceutical Wholesale Enterprises in 2020

Attachment: The top 100 rankings of the main business income of pharmaceutical retail companies in 2020 disclosed at the same time in the report