Yifeng Pharmacy acquired crazy, "gain weight" three times in 6 years. How do you live a single pharmacy?

The Chinese retail market is experiencing two days of ice and fire.

On the evening of August 10, Yifeng Da Pharmacy issued an announcement that the company will issue convertible bonds, and it is expected that the fund raising funds will not exceed 2.55 billion yuan. The main purpose of this fund is to start the acquisition of pharmacies.

The "Announcement" pointed out that in the next three years, Yifeng Da Pharmacy intends to acquire 3,900 chain stores in Hunan, Shanghai, Jiangsu, Jiangsu, Jiangxi, Hubei, Guangdong, Hebei, Zhejiang, and Tianjin, and plans to invest 2.014 billion yuan.

In the past few years, Yifeng Pharmacy has not stopped the pace of acquisition. In July 2020, Yifeng Da Pharmacy spent 119 million yuan, and plans to acquire 70%of Tangshan De Shitang's reorganization of the new company and obtain 85 stores under Shunde Tang. In April, Yifeng Da Pharmacy acquired a 51%stake in Hunan Jiuzhitang for 204 million yuan, causing more than 500 stores under Jiuzhitang.

According to data from the "Drug Supervision and Administration Statistics Report (2021)", the total number of Chinese pharmacies has reached 586,500, with a chain rate of 57.1%. There are still 251,200 single pharmacies. According to the plan of the Ministry of Commerce: By 2025, the chain rate of China's retail pharmacy will be close to 70%.

The industry generally believes that in the next three years, tens of thousands of single pharmacies are facing market elimination or fate of mergers and acquisitions.

6 years long, Yifeng Pharmacy is the first in the country

Yifeng Da Pharmacy plans to open 3,900 stores, mainly concentrated in 9 provinces and cities including Hunan, Shanghai, Jiangsu, Jiangxi.

Hunan is the base of Yifeng Da Pharmacy, while Shanghai, Jiangsu and other places have had stores in Yifeng in the past, and have formed a multi -level store layout of flagship stores, regional central stores, medium -sized community stores and small community stores. Continue to encrypt the layout in the advantage market may be the main reason why Yifeng chooses to have deep cultivation in the existing market.

Unlike Yixintang and other hopes to expand across regions, the way of Yifeng Da Pharmacy is to eat dry and squeeze in mature markets. From 2019 to 2021, the number of stores in Yifeng Da Pharmacy jumped from 4,752 to 7,809, with annual sales increased from 10.276 billion yuan to 15.326 billion yuan.

If the expectations of acquisition of 3,900 stores in the next three years, Yifeng Da Pharmacy is doubled in 3 years. The total scale will be close to 12,000 stores, which may surpass the large pharmacies of the people and become the largest chain pharmacy in the country.

The dispute between the scale between the chain pharmacies is actually a dispute over cost control. In order to enhance the user coverage of chain pharmacies, we can further reduce costs and expand sales. In the past, the method of refined selection and diversified operations has long been out of date. Nowadays, China's retail pharmacy market, "horse race" is the most important way to compete. Each family is afraid of falling in the competition.

Capital also adds a firewood to this way of competition. The Yifeng Pharmacy received a 2 billion yuan convertible bond financing this time. Prior to this, ordinary people and Jianjia have issued convertible bonds, raising 1.74 billion yuan and 1.55 billion yuan for mergers and acquisitions between pharmacies.

All of this is like the early stage of the development of China's innovative pharmaceutical industry: capital has great willingness to support the expansion of the scale of enterprises, and the end of the competition is not much considered.

The focus of capital may be "prescription circulation" that has been talking about. According to the data of "DTP Pharmacy Special Research Newspaper 2021", the sales amount of DTP pharmacy in China in 2020 exceeded 34.1 billion yuan, a growth of more than 4 times in 5 years.

It is difficult for a single pharmacies to protect the industry competition in the event of an event.

As the so -called "Strong Hengqiang", when the number of pharmacy giants expand the number of stores, the medical insurance policy has added a "fire" to the retail market

In May 2021, the National Medical Insurance Bureau and the State Health and Health Commission jointly launched the "dual channel" policy. This policy guarantees that all drugs are included in medical insurance, and pharmacies can enjoy the policy of reimbursement with the same reimbursement as the hospital. This is also the first time that the pharmacy is included in the medical insurance supply system from the national level.

The Jianzhi Bureau noticed that many "dual -channel" pharmacies in Jiangxi and other places chose to withdraw. Rather than delaying patients' medication and delaying corporate sales, it is better to take the initiative to withdraw.

Pharmacy chain and scale are one of the ways to improve service capabilities. Pharmaceutical companies are also more willing to unify the variety to the large -lock pharmacy for service quality and guarantee. Therefore, the dual -channel policy has actually supported the scale of chain pharmacies to further expand.

Wu Xiaobin, the global president and chief operating officer of Baiji Shenzhou, once said that after the "dual-channel" policy was introduced, pharmacies have been an important supplementary method for PD-1 sales. Ren Jin Sheng, chairman and CEO of Xianyou Pharmaceuticals, also believes that for patients, pharmacies that can enjoy medical insurance reimbursement have greatly improved the convenience of obtaining drugs.

At the time of the industry leader, when the scale of business is expanding, the other side of the coin is that most of the single stores are facing the danger of being eliminated by the market.

Kenzhi was informed that most of China's single pharmacies are limited to third- and fourth -tier cities and township markets, and they are facing many problems such as "single source", "inefficient management", and "brand disadvantaged". Due to the limited number of sales, the single pharmacy cannot get the minimum purchase price, and its operation has entered a vicious circle.

According to the current market trend, if a single pharmacy does not have the ability to transform the DTP business in the next three years, it will either die or take the initiative to join the giant chain for self -protection. There seems to be no way out.Single pharmacies are gradually withdrawing from the market. This is the inevitable result of promoting industrial concentration. It is an inevitable result of market competition and survival of the fittest. It is also a sign of the continuous growth and development of my country's pharmaceutical retail industry.

####

- END -