New challenges for pharmaceutical trading companies

First of all, let's look at the general overview of the pharmaceutical industry from two dimensions: from the international perspective, the global pharmaceutical market demand is still growing, and from the domestic perspective, the overall competitiveness of domestic pharmaceutical trading companies and pharmaceutical enterprises is not strong.
 
Specifically, Chinese domestic pharmaceutical companies are mainly APIs, with fewer generic formulations. Trade companies are the main focus, that is, to sell products. Domestic production capacity has the advantage of having many manufacturers, but R & D design capabilities and international marketing capabilities are at a disadvantage, and overall, domestic pharmaceutical companies are in the middle and lower reaches of the pharmaceutical industry value chain.
 
The main reason for this situation is the lack of international concept and insufficient market investment.
For a pharmaceutical company two words are very important - strategy. Excellent pharmaceutical enterprises must have a clear internationalization strategy, in the domestic production capacity of the environment to break the game must be international or seek complementary strategic cooperation, for example, many excellent pharmaceutical companies are now beginning to pay attention to the international regulatory market investment.
 
In the face of challenges, how to respond specifically to it, summarized in three words: change thinking, keep pace with the times, strategic cooperation.
 
By establishing a platform, integrating resources and upgrading the business model. For example, we mentioned the regulatory team building, which can broaden sales channels, from the original single selling low value-added products to sell high value-added regulatory registration services, recognize this point that is to do with the times to comply with industry trends. Establish their own regulatory team or seek complementary strategic cooperation, for example, can be bound with the regulatory registration team of mature pharmaceutical companies for in-depth cooperation.
 
Pharmaceutical companies also need to focus on products and markets to build their core competencies. You can get more product resources by investing in upstream extensions; increase investment in registration, upgrade business models, and change from traditional traders to licensees, thus building a corporate moat.