Chinese retail pharmacies suffered cold stream from medical reform

Apr 23 22:31 2012 David Yvon Print This Article

Recently, there are 636 retail pharmacies in Chongqing China announced the delisting. The main reason of delisting is because that the macro environment is not good.

 It makes retail pharmacies going through the winter. Since the introduction of ©remarkable new medical reform program,Guest Posting there is a support program policy on retail pharmacies. Retail pharmacies today is suffering from health reform cold, retail pharmacies in new medical reform process which benefits all levels become a forgotten corner.

Today, the development of the retail pharmaceutical raw materials is walking to the difficulties. There are mainly the following three reasons: First of all, since the introduction of the new medical reform program, and retail pharmacies into the overall planning of the new medical reform. The one hand, the new medical reform program did not give the details of the support of essential medicines sold in pharmacies; the other hand, it is the absence of specific programs to support the oppressed getting smaller and smaller living space for the retail pharmacy.

Second, the new medical reform program in the country provinces and cities in China to start gradually pilot of essential drugs zero difference system, so that, some public hospitals and community hospitals, drug retail price reduced by 15%, which undoubtedly has long been advantage of low prices dealt a heavy blow for the competitiveness of retail pharmacies. Retail pharmacy cheap marketing tool to implement a long time, thus re-price space to lower the figure to compete with public hospitals has been very limited.

Third, on October 2 last year, with the implementation of the system of essential drugs, the Chinese National Development and Reform Commission announced the retail prices of essential drugs, of which nearly half the price of drugs dropped by an average of 12%. From around the implementation situation, a number of retail glutathione pharmacies are not running the new price. Part of the medicines price adjustment after disappear, although this had to make the choice of a number of retail pharmacies in order to ensure normal operation, but this result has affected the overall image of the retail pharmacies.

In 2011, the total number of retail pharmaceutical raw materials suppliers is more than 380,000, including 220,000 individual shops and 160 000chain stores. It makes the development of retail pharmacies retail pharmacies to locate the missing but the new medical reform program into the marginalized. 10 years, China's top 100 pharmacies prescriptions dropped from 1.68 million in 2007 to 1.37 million, prescription sales accounted for total sales decreased by 27% to 25%. 11 years, this figure is still a big margin.

In the development dilemma for retail pharmacies in today', the phenomenon of holding together is gradually increasing. The majority of retail pharmacies in China take the initiative to look for restructuring cooperation. On the other hand, because the new medical reform’s supporting documents such as drug price management squeezes the profit margins of pharmaceutical distribution again, retail pharmacies today began to enter the field of electronic commerce. They expect to go though the winter brought by new medical reform.Source:

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