The trend of mergers and acquisitions of domestic pharmaceutical distribution companies is expected to accelerate further, and the concentration of leaders may further increase
According to the Beijing News, recently, the Beijing Municipal Health Commission and the Municipal Administration of Traditional Chinese Medicine jointly issued the “Beijing Municipal “Quality Service Grassroots Tour” Campaign and the Three-Year Action Plan for Community Hospital Construction to strengthen the service capacity building of primary medical and health institutions in Beijing.
Among them, it was mentioned that by 2025, the construction of the Beijing Medical Consortium will cover 100% of community health service centers, and village-level medical and health services will also achieve 100% coverage of the city.
The plan states that capacity building and community hospital construction should be carried out in accordance with standards and specifications.
Based on 2023, in 2024, more than 90% of community health service centers will meet service capacity standards, and 10 new community hospitals will be built.
For institutions that meet the competency standards by 2021, it is necessary to organize and carry out a “look back” to ensure that they meet the requirements of the new version of the standard.
At the same time, the capacity building of village health departments will be strengthened. Promote the integrated management of rural medical and health institutions, and achieve medical insurance settlement in village health rooms. The proportion of village health rooms that meet service capacity standards in 2024 will reach more than 30%, and by 2025 it will reach more than 40%.
By 2025, the proportion of village health rooms that achieve integrated management of people and goods in rural areas will aim to reach more than 60%.
SDIC Securities released a research report saying that after 2017, under the influence of the two-vote system and collection, industry concentration showed a further upward trend. Data from the Ministry of Commerce showed that the market share of the top 100 domestic pharmaceutical distribution companies in 2022 was 75.2%. Compared with the 96% market share of the top three US pharmaceutical distribution companies in 2015, there is still plenty of room for improvement in the concentration of the domestic distribution industry.
It is worth noting that the new round of state-owned enterprise reform also emphasizes specialized integration in the medical and health sector. The pharmaceutical distribution industry is heavily state-owned assets. Driven by superposition policies, the trend of mergers and acquisitions of domestic pharmaceutical distribution companies is expected to further accelerate as of 2024, and the concentration of leaders may further increase.
Pharmaceutical distribution-related companies:
Sinopharm Holdings (01099), China Resources Pharmaceutical (03320), Kangzhe Pharmaceutical (00867), Shanghai Pharmaceutical (02607)