China Meheco(SH:600056) Qian Zhan Wang·2025-07-22 08:49Industry Overview - Pharmaceutical distribution connects upstream manufacturers with downstream distributors and end customers, involving procurement from manufacturers and wholesale to distributors or direct sales to retail outlets like hospitals and pharmacies [1][3] - The distribution process is divided into two main segments: wholesale, characterized by large volumes and low margins, and retail, which has higher margins and sales costs [1] Industry Chain Analysis - The pharmaceutical distribution chain includes three segments: drug wholesale, retail enterprises, and hospital outpatient pharmacies, with hospital pharmacies holding a monopolistic position in the market [3] Industry Development History - The pharmaceutical distribution industry in China has undergone several transformations, from a planned economy system to a competitive regional structure, and now to a more concentrated market post "Two Invoice System" reform [6][7] Current Industry Status - The pharmaceutical circulation market has exceeded 3 trillion yuan, with a projected growth of 4.4% in 2024 [15] - State-owned enterprises dominate the pharmaceutical distribution sector, accounting for 61.8% of total revenue among reporting enterprises [20] - The B2B segment constitutes 50% of the pharmaceutical e-commerce market, indicating a significant focus on wholesale transactions [25] Competitive Landscape - The market is segmented into three tiers based on sales scale, with major national wholesalers like China National Pharmaceutical Group and Shanghai Pharmaceuticals leading the first tier [28] Future Development Trends - The pharmaceutical distribution market is expected to surpass 4 trillion yuan by 2030, driven by increased concentration, reduced distribution costs, and improved drug quality and safety [30] - The industry is moving towards greater integration and information technology adoption, enhancing service capabilities and efficiency [33]