What is the reason why distributors such as Sinopharm, China Resources and Shanghai Pharmaceuticals are so good in hospitals?

Recently, Shandong Liaocheng Hospital of Traditional Chinese Medicine issued the "Announcement of Public Bidding on the Selection of Qualifications for Centralized Procurement and Distribution of Medical Consumables"
.

What are the criteria for the selection of cooperative enterprises by the hospital?

From a practical point of view, when hospitals are currently selecting distribution companies, the threshold requirements are getting higher and higher
.

It is reported that the bidding announcement of the Liaocheng Traditional Chinese Medicine Hospital pointed out that the supplier is required to have the ability to distribute all hospitalized medical consumables, and to have the ability to urgently purchase consumables.
The general consumables delivery time should be within 24 hours, and the special goods delivery time should be Within 4 hours
.

In addition, there are requirements for the quantity, price, and SPD management mode of consumables
.

Numerous rigid requirements keep a large number of medical circulation companies out of bidding qualifications, just as cold as the phrase "non-985 or 211 undergraduate graduates are not considered" on the recruitment company leaflet
.

But for the hospital, this is also helpless
.

For large hospitals, in recent years, the types of medical consumables they need to use are often as many as thousands, and behind them are a large number of suppliers of different sizes, which poses no small management challenges for hospitals
.

On the other hand, under the influence of policies such as the "two-invoice system" and "4+7 volume purchase", consumables distribution management has become an increasingly cost item that needs to be controlled for hospitals
.

As a result, more and more hospitals package and contract medical consumables to one or several distributors
.

Taking the related project of Jinan Fourth People’s Hospital as an example, media reports pointed out that the hospital has put forward standards for suppliers and hopes that the company “total area of ​​supplier’s warehouse ≥ 10,000 square meters”, “cold storage area ≥ 750 square meters”, and “consumables of consumables bidding companies” ≥4000 a number "and other
.

Therefore, data shows that only giant companies such as Sinopharm, Shanghai Pharmaceuticals, China Resources Pharmaceuticals, and Jointown are eligible to be listed on the candidate list of medical consumables distributors for large hospitals
.

According to the "Statistical Analysis Report on the Operation of the Pharmaceutical Distribution Industry in 2020" issued by the Ministry of Commerce on July 30, China's pharmaceutical distribution companies are ranked by China National Pharmaceutical Group, Shanghai Pharmaceuticals, China Resources Pharmaceuticals, and Jointown
.

Statistics show that Changsha Central Hospital, Shandong University of Traditional Chinese Medicine Affiliated Hospital, Qinhuangdao City Second Hospital, Weifang Medical College Affiliated Hospital and other hospitals have the "big four pharmacies" in their distribution providers.
Some hospitals, Even an exclusive bid
.

One super, many strong, the industry pattern has been rewritten

The industry research report pointed out that the domestic pharmaceutical wholesale industry enterprises can be divided into three levels of competition according to the sales scale
.

Among them, Sinopharm, Shanghai Pharmaceuticals, China Resources Pharmaceuticals, and Jointown are in the first echelon
.

It is worth noting that after the establishment of a consortium between China Pharmaceuticals and Chongqing Pharmaceuticals, its business scale has further expanded, and its volume is second only to Jointown, ranking fifth in the industry
.

On the whole, the pharmaceutical circulation field has been formed.
Sinopharm Group is the "one super market", and Shanghai Pharmaceuticals, China Resources Pharmaceuticals, and Jointown have built a "multi-strong" industrial structure
.

From the perspective of revenue, after the implementation of the "two-invoice system", the revenue growth of Sinopharm, Shanghai Pharmaceuticals, Jointown, and China Resources Pharmaceuticals in 2019 reached 23.
4%, 17.
3%, 14.
2%, and 7.
8%, respectively
.

For distribution companies, under the state-led procurement of quantities, the order quantity has increased sharply.
In terms of capital capacity, hospital coverage, and delivery timeliness guarantees, it is indeed not something small enterprises can undertake
.

Driven by favorable policies, industry leaders are also actively expanding their competitiveness and increasing market coverage
.
To do this, the fastest way is through capital mergers and acquisitions
.

In recent years, the practice of pharmaceutical distribution companies has indeed been the same
.

According to public reports, Sinopharm has acquired Anhui Pharmaceutical (Group) Co.
, Ltd.
and Guizhou Yitong Pharmaceutical Co.
, Ltd.
for 2019
.
In July of the following year, it acquired the entire equity of Chengdafangyuan at a transaction consideration of 1.
86 billion yuan
.

According to reports, as of 2019, Chengda Fangyuan has more than 1,500 stores in 5 provinces and 19 cities across the country.
After the completion of the merger, Sinopharm’s market coverage has further expanded; Shanghai Pharmaceuticals has acquired Sichuan Guojia Pharmaceutical, as well as Hubei and Sichuan.
, Tianjin and other companies; China Resources Pharmaceutical Commercial has completed the acquisition of equity in several prefecture-level circulation companies in Sichuan, Jiangsu and other provinces
.

It is also worth noting that on October 18 this year, the State Administration of Markets issued an announcement stating that China Resources Sanjiu and Hubei Kanghua Pharmaceutical will jointly establish a new company with 51% and 49% shareholding ratios
.
Behind Hubei Kanghua is Jointown, the two companies ranked third and fourth in the field of pharmaceutical circulation
.

What kind of changes can the promotion of policies, changes in hospital demand and the accelerated deployment of industry leaders bring to the pharmaceutical distribution market? We will continue to pay attention to this
.