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Adapting to Medical Intensive Management ,Realcan Pharmaceutical Expresses High Speed and Multivari

Date: 2018-06-21
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It is reported that Realcan Pharmaceutical Co., Ltd., a listed company, benefits from the “two-vote system” medical reform policy and uses the national information system as its cornerstone to quickly deploy its nationwide direct sales platform for pharmaceuticals and devices. In the first quarter of this year, after operating income exceeded RMB 7 billion for the first time in a single quarter, Realcan Pharmaceutical continued to maintain high growth in April and May.

With the gradual advancement of medical reform, “control fees” and “increasing efficiency” have become the two major themes. Under the “two-vote system” policy, national and regional pharmaceutical distribution companies have embraced opportunities for rapid growth in industry concentration through adoption. Intensive management improves the efficiency of pharmaceutical circulation and reduces the loss of intermediate links.

On the one hand, Realcan Pharmaceuticals continues to lay out large-scale medical institutions to meet the needs of patients with major diseases such as hospitalization and surgery. On the other hand, it adjusts the business matrix, increases the number of basic medical institutions and chain pharmacies, and satisfies patients with common diseases and chronic diseases quickly and conveniently  demand.

According to Wu Hao, executive vice president of Realcan Medicine, Realcan Pharmaceutical currently has a coverage rate of 80% in tertiary medical institutions, and 67% coverage of secondary medical institutions in district and county level in primary medical institutions (township hospitals). The coverage rate reached 60%. The next step Realcan Pharmaceutical's goal is: In the national market coverage rate to 95%, and improve profitability.

At present, Realcan Pharmaceuticals has 248 sub branch offices throughout the country, serving more than 8,000 medical institutions above Grade 2 and serving more than 30,000 primary care institutions. It has gone from Shandong province to the whole country, from single business to multiple business types developmenting process. The business involves ten sectors including the distribution of medicines and medical devices, medical informationization, medical logistics services, and medical industry supply chain finance.

The data shows that since the company was listed in 2011, its operating income has maintained an average annual growth rate of 40%, from 3.2 billion yuan in 2011 to 23.3 billion yuan in 2017. The net income of the mother’s home has maintained an annual growth rate of 50%, which has increased from more than 80 million yuan in 2011 to 1.08 billion yuan in 2017.

It is worth mentioning that Realcan Pharmaceutical has actively expanded its medical device business since 2013. Since 2015, it has expanded its overall business to outside of Shandong Province, and its profitability has continued to increase with business expansion.


"Pharmaceutical circulation has been transformed from a period of rapid growth to a steady development stage with an annual growth rate of approximately 10%. In contrast, the current circulation of equipment is in a period of rapid development with an annual growth rate of more than 20%." Founder and President of Realcan Medicine Zhang Renhua It is said that not only there is a lot of room for growth, but also there is a large space for integration, and in the next 3-5 years, leading large-scale medical device distribution enterprises will be ready to go.

Zhang Renhua said that in the next step, Realcan Pharmaceutical aims to become a nationwide platform, data, and technology-based medical circulation service company, and plans to achieve this through three "streams".

The first is capital flow, which improves billing period and cash flow through a variety of innovative financing and payment instruments to help the rapid development of the business and enhance profitability. The second is information flow. It is expected that the SAP system of all subsidiaries of the Group will be launched in 2018, and related data will be standardized and systematically integrated to support upstream and downstream extension services. Third, logistics, unified platform for warehousing and logistics, and promoting the development of third-party logistics, is expected to significantly increase the efficiency of logistics and distribution in 2018.

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