According to reports, the Ministry of Commerce recently held a meeting to discuss revisions to the National Pharmaceutical Distribution Industry Development Plan from 2010 to 2015.

The revision follows consultation with industry associations.

It is understood that the draft of the "plan" has been completed and the release date is approaching.

The "Plan" has clearly played the market card this time, allowing many leading local and private enterprises that are looking forward to the integration of the pharmaceutical distribution market and the development of large pharmaceutical logistics to see the opportunities in the integration. Pharmaceutical stocks in the A-share market have also implicitly risen.

machine.

The plan is intended to increase concentration. It is understood that there are currently as many as 13,000 pharmaceutical distribution companies in my country, but in fact, only a handful of companies have ideal scale, strength and profit levels.

Too many companies have squeezed into it, leading to frequent vicious competition among companies.

The original intention of formulating the "Plan" is to change the current situation of the industry and achieve an increase in concentration.

Sources revealed that this "planning" involves the reform of the "medicine-based medical care" system, the public hospital system, the large hospital compensation system, etc. It also involves how social security and other relevant departments can exert more supervision over social security funds.

functions, etc.

The market card may launch a second round of integration. Experts involved in formulating the "plan" said that the main purpose of this "plan" is to promote integration, but it will not clearly encourage which integration direction. As long as it complies with market rules, it can achieve good results.

Competition and planning will be supported with a supportive attitude.

In addition, the central government will also provide a series of support policies to promote industry integration, mainly including tax policies and financial support, which may involve specific details such as implementing tax exemptions and encouraging the development of drugstore chains at or above the county level.

The "Plan" revealed that during the "Twelfth Five-Year Plan" period, the pharmaceutical distribution industry will focus on encouraging mergers and reorganizations of pharmaceutical distribution companies and the development of retail chain formats. The core of the "Plan" is to allocate resources in a market-oriented manner and rely on the industry itself to promote it.

rather than relying on administrative power.

This means that private capital, which has been "lurking" in the pharmaceutical distribution industry for a long time, will gain momentum and opportunities for a new round of integration of the pharmaceutical distribution industry.

Analysts believe that this plan will strengthen the direction of the nationwide layout of pharmaceutical business industry leaders, and the activity of private capital will increase significantly.

At present, the national pharmaceutical distribution market has a "national team" represented by Sinopharm Group, New Shanghai Pharmaceuticals, and New China Resources, that is, the first echelon with the largest scale and strength in the pharmaceutical distribution market. The three major groups have successively completed in the past two years

The integration and acquisition of its main pharmaceutical circulation assets and domestic high-quality assets often involve the pharmaceutical industry and pharmaceutical business simultaneously, and a tripartite situation has initially formed.

Analysts said that as the first-tier "territory" of the pharmaceutical distribution industry is initially determined, distribution companies including Nanjing Pharmaceutical, Jiuzhoutong, and Intel Group are expected to take the opportunity to show off their talents and lead the integration and mergers and acquisitions boom.

The growth of the pharmaceutical and biological index lags behind. A research report from Huatai Securities pointed out that since July, the growth of the pharmaceutical and biological index has lagged behind, and the pharmaceutical sector has an obvious rebound trend.

Since July, the pharmaceutical and biological index and the Shanghai and Shenzhen 300 pharmaceutical index have increased by 13.5% and 14.8% month-on-month respectively. Compared with the trend of A-shares, they have only exceeded the trend by 2.6 and 4.0 percentage points respectively.

Interim performance growth will reduce the overall valuation pressure on pharmaceuticals. However, compared with cyclical industries, the excess returns of the pharmaceutical industry are far less than those of cyclical industries. They are more of a trading rebound opportunity and some opportunities after correction of valuation pressure.

At this stage, investors are advised to pay attention to Hengrui Pharmaceutical, Yunnan Baiyao, Yabao Pharmaceutical, Yuheng Pharmaceutical, Kangzhi Pharmaceutical and Tianfang Pharmaceutical, which have a certain margin of safety.