China Pharmaceutical Supply Chain Evaluation

China Pharmaceutical Supply Chain Evaluation
China Pharmaceutical Market Overview
China is the fastest growing and most populous country in the world, so China's pharmaceutical market is also the fastest growing market in the world, especially in the last decade or so China's pharmaceutical market is growing rapidly, and its growth rate is much faster than the pharmaceutical market in Western Europe and North America until 2020 when China replaces the United States as the largest pharmaceutical market. The rapid development of the Chinese pharmaceutical market has brought many dividends to foreign pharmaceutical companies, such as access to higher quality pharmaceutical APIs and formulations at very affordable price.
Current state of China's pharmaceutical supply chain
Large leading pharmaceutical companies are integrating the pharmaceutical supply chain. In China, large public hospitals outsource procurement to large drug distribution companies and large pharmacy chains, and China´s pharmaceutical distribution market is highly concentrated; large pharmacy chains integrate independent stores and small retail pharmacies through mergers and acquisition or granting franchises to achieve economies of scale, and broader and more efficient logistics networks have been built; large pharmaceutical companies acquire and merge small and medium-size pharmaceutical companies; and promote information sharing with pharmaceutical downstream companies.
China Pharmaceutical Supply Chain Features
The most important feature that distinguished China´s pharmaceutical market from other pharmaceutical markets is the role played by the government in promoting the optimization of the pharmaceutical supply chain, which is also due to China´s institutional advantage - the government has played a huge role in promoting the harmonious and stable development of the market, which is the fundamental reason why China´s pharmaceutical market has been able to develop rapidly in the last decade or so. The measures taken by the government in promoting the optimization of the pharmaceutical supply chain mainly include the following:
1. Through the development of the essential drug catalog system, hospitals are directly linked to pharmaceutical companies, reducing the supply chain and intermediary links and improving the concentration of the entire industry.
2. Establishing quality management standards for medicine production and strictly gate-keeping drug production and market access standards.
3. Formulate medicine business quality management standard, strictly control the benign operation and management of Chinese pharmaceutical enterprises
4. Build a third-party platform for the purpose of win-win cooperation, which is definitely an innovative initiative to promote healthy competition and development among pharmaceutical enterprises and to integrate the supply chain through the establishment of this new third-party trade service platform. At the same time, it can also serve as a transaction intermediary for pharmaceutical procurement and pharmaceutical suppliers. This third-party platform can be a non-profit nature established by the government or a new trade model developed by large pharmaceutical enterprises themselves, but either way this new integrated trade service model is of great benefit to pharmaceutical procurement and pharmaceutical product suppliers. Through third-party pharmaceutical trade service providers, whether the matter is sourcing Chinese API or finished formulations from China, it will be easy and fast to get detailed information about the supply chain and at a very favorable price.