The opening of prescription drugs on the Internet

Source: CPHI on October 13, 2014, the reporter noted that there were recent media reports that online sales of prescription drugs or opening around New Year's day, driven by the policy, pharmaceutical e-commerce is expected to usher in unprecedented opportunities On May 28, the State Food and Drug Administration (hereinafter referred to as CFDA) promulgated the measures for the supervision and administration of Internet food and drug distribution (Draft for comments), which reclassified and defined the Internet drug distribution business, proposed to reduce the threshold of business access and liberalize the e-commerce sales of prescription drugs, and attracted wide attention in the pharmaceutical industry and capital market The reporter noted that the media reported recently that online sales of prescription drugs or the opening of the gate around New Year's day, driven by the policy, pharmaceutical e-commerce is expected to usher in unprecedented opportunities As a highly standardized and bar code indicative commodity, medicine is one of the most suitable products for e-commerce Since 2005, the first pharmacy online of B2C pharmaceutical enterprises, with the formation of online consumption habits and the emergence of network platform and supporting service providers, the online pharmacy has entered an explosive growth stage According to the statistics of China pharmacy pharmaceutical e-commerce research center, in 2013, the annual transaction scale of China's pharmaceutical B2C was 4.26 billion yuan, an increase of 166% compared with 1.6 billion yuan in 2012, and only about 400 million yuan in 2011 In addition, according to the data of China Electronics [- 2.26%] Chamber of Commerce, the transaction scale of China's pharmaceutical e-commerce is expected to reach 6.8 billion yuan in 2014 Huatai Securities [- 0.33% capital research report] said that due to the advantages of convenient, high price, privacy protection, better service and other advantages of drug Internet sales, it has become an important channel for global drug sales Since the late 1990s, there have been online pharmacies in the United States with the Internet as the trading platform By 2000, the United States had more than 1000 online pharmacies with an annual trading volume of more than 20 billion US dollars In 2005, the total number of online pharmacies reached 1400, with sales of US $43.9 billion, accounting for about 19% of the retail sales of drugs in the United States, second only to chain pharmacies in various drug sales channels According to the monitoring data of China e-commerce research center, in 2013, the amount of drugs retailed through the Internet in the United States reached about 74.3 billion US dollars, accounting for about 30% of the drug retail market In Europe, more than 90% of pharmacies under the European Association of pharmacists carry out online drug booking services, and the proportion of online retail has reached 20% According to the data, one out of every five medicines in Switzerland is sold through the Internet In Asia, the Japanese government also actively promotes drug Internet sales, and the third-party drug Internet sales platform is a positive development model of the Japanese government By contrast, China's pharmaceutical e-commerce is still in its infancy In 2013, the proportion of online retail sales of Chinese pharmaceutical [3.76% capital research report] products was only 1.7%, and it is estimated that this year (2014) is close to 2.5% A public medical researcher told the daily economic news that 80% of drugs are sold through the circulation field abroad, including pharmacy sales and Internet sales, and only 20% of drugs are sold through hospitals In China, on the contrary, 80% of drug sales are controlled by hospitals This is directly related to the current situation of "nourishing medicine with medicine" in China for a long time However, the separation of medicine is still the only way for China's new medical reform In the long run, the biggest beneficiary of the policy liberalization is not only the physical drugstore, but also the medical e-commerce However, due to the rapid rise of the cost of rent and labor, the growth of the number of physical pharmacies in China has been obviously sluggish, while online pharmacies are just emerging Docking with medical insurance is a major test According to the introduction of relevant industry insiders, the basic laws and regulations previously implemented by the pharmaceutical e-commerce industry are still the Interim Provisions on examination and approval of Internet drug transaction services formulated and implemented by the State Food and Drug Administration in 2005 The above-mentioned laws and regulations give relevant explanations to the auditing standards and business authorities of Internet drug trading service institutions In the following seven years, the regulatory policy of pharmaceutical e-commerce industry has not been further updated, which leads to the narrow business authority of pharmaceutical e-commerce enterprises, and becomes one of the important reasons for restricting the development of the industry It is worth noting that on May 28, 2014, the State Food and Drug Administration issued the measures for the supervision and administration of Internet food and drug distribution (Draft for comments), which clearly stated that Internet drug operators should sell prescription drugs according to the requirements of drug classification management regulations This action reflects the policy guidance of medicine separation, and has unprecedented solved the policy constraints of e-commerce in prescription drug sales and logistics distribution It is generally considered as an ice breaking move of policy, which will bring important opportunities for the industry to speed up Recently, the first financial daily reported that the opening of online prescription drugs on national day or new year's Day is a sure thing According to its report, as early as early as September, the leaders of the State Food and Drug Administration held a meeting to coordinate and arrange the implementation of the measures for the supervision and administration of Internet food and drug trade (Draft for comments) Yin Li, deputy director of the State Food and Drug Administration holding the coordination meeting, said it was the last coordination meeting The most interesting thing is that the CFDA may no longer make the "online catalog", but make the list of drugs that can not be sold online, that is, the so-called "negative list" Prescription drugs other than the negative list can be sold online by prescription An analyst at a securities firm, who declined to be named, told the daily economic news that the opening of online prescription drugs is a very good thing for the whole industry And now the coverage of the "negative list" in the media is greatly open compared with the previous comments of CFDA At present, the overall scale of pharmaceutical e-commerce is still very small, with a sales volume of more than 4 billion yuan a year The policy support can promote the increase of online drug sales However, how to connect online drug sales with medical insurance is a major test and one of the factors limiting the development of online drug sales UBS Securities Research Report shows that the deregulation of online prescription drug management means that the market space of pharmaceutical e-commerce will expand from an OTC market of 200 billion to an OTC + prescription drug market of trillion scale, and then to a large health market of about 3 trillion scale Prescription drugs, especially new special drugs and drugs for chronic diseases, have a high amount of money and a strong continuity of drug use for patients The addition of these products should greatly improve the user stickiness and customer unit price of e-commerce enterprises The reporter of "daily economic news" noted that in the A-share market, many listed companies are also actively in the field of pharmaceutical e-commerce Briefly, it includes Jiuzhoutong [4.10% capital research report] (600998, closing price 18.02 yuan), Yixintang (002727, closing price 48.76 yuan), jiashitang [1.46% capital research report] (002462, closing price 25.01 yuan), taiantang [- 1.51% capital research report] (002433, closing price 13.03 yuan), Taiji Group [3.36% capital research report] (600129 , closing price 15.70 yuan), Kangmei pharmaceutical [0.06% capital research report] (600518, closing price 15.99 yuan), Yiling pharmaceutical [- 0.21% capital research report] (002603, closing price 33.38 yuan), etc Kyushu Tong is an early A-share company involved in pharmaceutical e-commerce As the B2C platform of kyushutong, the online drugstore of good pharmacists was officially launched in 2011 In 2013, the transaction volume reached 204 million yuan, a year-on-year increase of 167.05%, and the net profit was 1.925 million yuan, a year-on-year turnaround Jiuzhoutong financial report shows that in the first half of this year, the company's good pharmacist pharmacy chain Co., Ltd achieved sales of 160 million yuan, an increase of 162.3% over the same period last year In January 2014, the wechat store of good pharmacists officially went online and cooperated with drugstores to launch o2o "drug delivery" business As of the first half of the year, good pharmacists have signed contracts with nearly 1500 offline pharmacies in Shanghai, Beijing, Guangzhou and other places, and have tried out the urgent delivery service Jiuzhoutong's relevant person in charge told reporters that this year, the company's e-commerce business development is very smooth and has been in accordance with the plan For the leading drugstore in Southwest China, Guotai Junan research report points out that the company has 1847 stores in Yunnan and has become the leading enterprise of Yunnan retail drugstores Through continuous information infrastructure construction and preliminary exploration of medical e-commerce business, the company has a new blueprint to develop o2o and e-commerce business Since 2007, the company has begun to carry out information construction for the original business of the company At present, it has preliminarily formed a complete system of adult, finance, logistics, data analysis and processing, laying the foundation for the company's new business in the future Through its own website and the third-party platform, the online platform layout has been completed, and the e-commerce business has begun a small trial At the same time, the company cooperates with well-known e-commerce business service providers to upgrade its stores and help the company carry out o2o business In addition, taiantang recently invested 350 million yuan to acquire kangaido, a pharmaceutical e-commerce company, and quickly cut into the field of e-commerce Kangai has been in the forefront of domestic pharmaceutical B2C enterprises Since its establishment in July 2010, it has been committed to the construction and operation of OTC drugs, health products, home medical devices, family planning supplies and other types of purposes, focusing on the fine operation of the vertical field of medical health, realizing online sales transactions and providing pre-sale and after-sale pharmaceutical services At present, the company has completed the coverage of three terminal technology products: Internet official website platform, tmall platform flagship store and mobile Internet In 2013, the sales volume reached 162 million yuan, ranking the top in B2C industry