Tianshi Li bet on the pharmaceutical industry.

Pharmaceutical Network, June 18, recently announced that Tianshili will sell 1.489 billion yuan to Chongqing Pharmaceuticals Tianshili Marketing 99.9448% of the shares, the sale of funds will be used to improve the company's cash flow and the power of traditional Chinese medicine and other pharmaceutical industry sectorsThe long-term pharmaceutical circulation business for Tianshili to bring a larger contribution to revenue, but in the fierce market competition and the implementation of the "two-vote system" policy, the lower gross margin and larger cost expenditure let Tianshili marketing face no small pressure, which is also considered by the industry as one of the reasons for Tianshili to spin off the pharmaceutical circulation business.Divestiture of circulation businessAccording to the announcement, Tianshili intends to sell the company's pharmaceutical commercial business model of distribution and distribution business sector assets, that is, Tianshili Marketing 99.95% of the equityAfter the completion of the transaction, Tianshili will no longer hold a stake in Tianshili Marketing, and the company will withdraw from the distribution and distribution of third-party products in the pharmaceutical business sector, retaining the original research and development, manufacturing and proprietary sales of modern Chinese medicine, biological medicine and chemical medicine of listed companies.Tianshili is a large biopharmaceutical industry as the core of the enterpriseAccording to the official website, TianShili in doing special refinement, stronger and bigger modern Chinese medicine on the basis of the chemical, biological medicine industry expansionTianshili marketing industry for pharmaceutical circulation,pharmaceuticalretail and health management services industry, the main business for third-partypharmaceuticalindustrial enterprises pharmaceutical,medical equipment,health care products distribution and other products As a pharmaceutical circulation enterprise, Tianshili Marketing purchases medicines, medical devices, etc from upstream pharmaceutical industrial enterprises or pharmaceutical distribution companies, distributes and distributes to downstream distributors, medical institutions at all levels, pharmacies and other end customers, and obtains profits from the purchase and sale difference .　　It is worth mentioning that the sky-sly marketing plan to spin off Tianshili for a long time to bring a larger revenue contribution In 2019, Tianshili achieved revenue of RMB18,998 million, of which Tianshili Marketing achieved revenue of RMB13.435 billion, accounting for 70.71 percent of Tianshili's total revenue In 2017-2018, Tianshili Marketing achieved revenue of RMB 9.848 billion and RMB11.659 billion, respectively, accounting for 61.19% and 64.8%, respectively .　　For the sale of Tianshili marketing reasons and future development planning issues, Tianshili related to the person in charge told reporters, to the content of the announcement According to Tianshili in the announcement, the pharmaceutical circulation industry has a clear head effect, fierce competition in the industry, the continuous huge capital investment to the company caused a certain amount of pressure, through the sale to ease the pressure at the same time focus on the pharmaceutical industry .　　The fierce competition in the market the competitive pressure of the industry is an important reason for Tianshili to divest its pharmaceutical circulation business At present, China's pharmaceutical circulation industry has formed a "4 plus N" competitive pattern, that is, four national leading enterprises InChina Medicine, Shanghai Pharmaceuticals, China Resources Pharmaceuticals and Kyushu Tong According to the 2017 Statistical Analysis Report on the Operation of the Drug Circulation Industry and the 2018 Statistical Analysis Report on the Operation of the Drug Circulation Industry issued by the Market Order Department of the Ministry of Commerce, Tianshili Marketing ranked 21st and 19th, respectively, with main business revenue .　　With the "two-vote system" "drug centralized procurement" and other policies continue to be implemented, small and medium-sized pharmaceutical circulation enterprises continue to be compressed In January 2017, in order to further reduce the inflated drug prices and reduce the burden of drug use by the masses, the State Council Medical Reform Office and other eight departments jointly issued a notice clearly, comprehensive medical reform pilot provinces (regions, cities) and public hospital reform pilot cities of public medical institutions to take the lead in the implementation of drug procurement "two-vote system", drugs sold from pharmaceutical plants to first-level dealers to open an invoice, dealers sold to the hospital to open another invoice .　　The implementation of the "two-vote system" has changed the pattern of the pharmaceutical circulation industry, such as the settlement object of commercial circulation enterprises, from the original relatively weak small and medium-sized dealers into a strong hospital Because of the hospital's dominant position in the drug circulation chain, the repayment speed is slow, which brings the medical circulation enterprise accounts receivable account period extension, accounts receivable surge problem, the pharmaceutical commercial circulation enterprise's capital pressure is increasingly prominent .　　This is also reflected in The performance data of Tinseforce In 2019, the gross margin of the pharmaceutical business segment where Tianshili Marketing is located was 10.02%, while the gross margin of the pharmaceutical industry sector was 74.63 percent during the same period As of the end of 2019, Tianshili's total liabilities amounted to RMB12.15 billion, of which Tianshili Marketing's liabilities amounted to RMB7.533 billion In 2019, Tianshili Marketing Receivables amounted to RMB 5,872 million .　　Zhao Heng, founder of Latitude Health, a medical strategy consulting firm, said in an interview that after the implementation of the "two-vote system", pharmaceutical companies to change the marketing model, and hospitals between only a commercial agent company, and the previous layer of agents to bear marketing costs, now pharmaceutical companies need to bear most of the marketing costs, increase the company's sales costs, which is tianshili divested the pharmaceutical circulation business for a reason .　　According to Tianshili's plan,
divestiture of the pharmaceutical circulation business can effectively reduce the ratio of assets and liabilities, improve the company's operating cash flow, improve shareholder return on investment, and further improve the quality of operations and operational efficiency The company's next step will be to focus on promoting the collaborative development of modern Chinese medicine, biologics and chemicals .　　At present, Chinese traditional medicine products are the main source of revenue under the Tianshili pharmaceutical industry sector According to the 2019 financial results, The company achieved revenue of RMB4.348 billion Chemical agents, chemical raw materials and biological drugs achieved revenue of RMB1.606 billion, RMB44.2118 million and RMB217 million, respectively However, the main products under the Chinese traditional medicine sector compound dansan pills, serum brain particles (pills), injection of beneficial gas compound sales in 2019 all showed a decline, the above-mentioned product sales decreased by 13.23%, 2.3%, 16.44% year-on-year Tianshili's revenue in the traditional pharmaceutical sector also fell 18.85 percent year-on-year In Zhao Heng's view, the state's supervision of the Chinese medicine market is tightening, Western medicine needs to go through at least a year of study and assessment success, before the prescription of traditional Chinese medicine and other policies so that the performance of Chinese traditional medicine enterprises have been affected .　　In the case of the decline in sales of the main products of traditional Chinese medicine, Tianshili accelerated the promotion of its biopharmaceutical products to market Recently, Tianshili disclosed the plan to spin off its subsidiary Tianshili Biopharmaceutical Co., Ltd to the company's listing, through the listing to obtain financial support, increase product research and development investment and marketing activities, enhance the core competitiveness of Tianshili bio-core, deepen the strategic layout in the field of biological drugs .　　The plan shows that Tianshili organisms focus on cardiovascular, tumor and autoimmune diseases, digestive metabolism three major therapeutic areas The current main biopharmaceutical product is "Recombinant Human Urinary Kinase Gen" (commodity name "Puyok"), which is currently approved for the treatment of acute ST-section-elevated myocardial infarction ("STEMI") At the same time, Puyk is conducting Phase III clinical trials for acute ischemic stroke (b1140) and Phase II clinical trials for acute pulmonary embolism (b1448) In 2017-2019, Tianshili Bio realized revenue of 115 million yuan, 242 million yuan and 227 million yuan, respectively, with losses of 103 million yuan, 755.05 million yuan and 355 million yuan, respectively .