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Prescription Drugs Become a New Pivot of the Growth on the Retail End, Takeda Pharmaceutical and BAHEAL Pharm Started the “Greater Retail” Strategy

2017-08-20

On August 20, during the CPEO meeting of the year, BAHEAL PHARM and Takeda Pharmaceutical separately held a news press at Boao Forum for Asia Hotel on a strategic cooperation in the new retail of prescription drugs, with BAHEAL PHARM to be authorized by Takeda Pharmaceutical with regard to six of its prescription drugs, namely, Pantoloc, Takepron, Basen, Actos, Blopress, and Prevacid, which will be covered in the brand-new marketing model of prescription drugs for retail terminals. Both parties will make full use of their respective resources to start the “Greater Retail” pharmaceutical strategy together and draw a new blueprint for the pharmaceutical industry.

       

       

BAHEAL PHARM and Takeda Pharmaceutical starting a strategic cooperation in the new retail of prescription drugs

       

Prescription Outflow Becomes a Trend and Prescription Drugs Become a New Pivot of the Growth on Retail End

       

From the stipulation of the 2016 Major Tasks in Improving the Reform of the Medical and Health System to “forbid the restriction of prescription outflow by hospitals” to the explicit provision of Several Opinions of the General Office of the State Council on Further Reforming and Improving the Policies for the Production, Distribution and Use of Pharmaceuticals: “further break the compensation system for the medical cost through drug-selling profits and allow outpatients to decide where to buy the drugs prescribed by the doctor—the hospital pharmacy or the retail pharmacy, and medical institutions shall not prevent outpatients from buying drugs at retail pharmacies with a prescription”, the focus in the outflow of prescriptions on retail drugstores has evidently become a trend.

       

It is known that retail drugstores have been growing dramatically in Japan, among which, the market of chain drugstores has achieved a scale of JPY 6,500 billion (RMB 406.2 billion) at a growth rate of 6%. Also, the pharmaceutical market is as large as over USD 400 billion in the United States, with retail accounting for 70% of the total size of the market.

       

According to monitoring data statistics by Sinohealth CMH, additionally, the scale of China’s pharmaceutical market was RMB 1490.9 billion in 2016, of which the market of prescription drugs was about RMB 1267 billion. As far as specific channels are concerned, tiered hospitals (including those in cities and county-level) remain a primary channel for the sales of prescription drugs, with a market share of 80%, as the sales of prescription drugs is dependent on the prescriptions and medical advices of the doctors; the next is retail, with a share of 9.18%. The growth of tiered hospitals in cities is weak while it has become a general tendency for prescription drugs to flow from hospitals to retail drugstores as the attitude of the regulatory authorities has been increasingly clear towards the outflow of prescription drugs in the context of such policies as the control of costs under the medical insurance system, the proportion of drugs and the cancellation of medicine markups, among others, in spite of the insignificant size of retail drugstores.

       

Multinational Pharmaceutical Enterprises Innovate Marketing and Deep Plow the Retail End of Prescription Drugs with BAHEAL PHARM

       

On the present day characterized by a growing domestic pharmaceutical market and demand for health, it will also become a development trend for multinational pharmaceutical groups to go hand in hand with domestic enterprises in China to work more effectively in the competition for Chinese market. As the first case of close cooperation with domestic pharmaceutical enterprises, Takeda Pharmaceutical determines that BAHEAL PHARM’s drug marketing, layout of DTP pharmacies as well as its marketing technique and service capability are the most important factors for a partnership between the two companies after a full-range analysis and study.

       

Following the development of mobile Internet technology and the popularity of smart phones, the fragmentation of information and noise become the largest challenge for enterprises in formulating marketing strategies. In this context, BAHEAL PHARM has been lifting the marketing of content up to a strategic height from 2016 and, by cooperating with mature professional entertainment IPs for constant generation of interactive topics and by interacting with targeted audience via public relation efforts, making people’s trust in the brands further improved. And just a short time ago, BAHEAL PHARM began to work with Oracle marketing cloud to build up the “Spiegel Smart Marketing Cloud” as a marketing management platform to make full advantage of IT and cloud service to get through online and offline marketing channels and to achieve interaction among brand operators, drugstores and patients as well as precision marketing by means of intelligence-based marketing tools.

       

Meanwhile, the widely available resource of DPT pharmacies has also facilitated this cooperation with Takeda. For the upstream, BAHEAL PHARM provides technology- and service-intensive marketing-control logistics and management of DTP pharmacies and makes it possible for pharmaceutical industry to enjoy safe, efficient and intensive services in the course of the transformation from centralized to decentralized marketing. For the downstream, it selects target enterprises from 230,000 cooperating terminal drugstores for renovation as DTP pharmacies in accordance with the “doctor-oriented first and then patient-oriented” layout principle.

       

“Multinational companies used to work around hospitals in terms of the structure of channels in China as 80% of the drugs were sold there. Following the advancement of such policies as the progressing medical reform, the zero difference in prices as well as the separation of medical costs from drugs, and so on, however, the retail market has become a more and more popular battlefield. This successful cooperation with Takeda is also the first time for a multinational pharmaceutical enterprise to entrust its retail channels to a local counterpart. We also believe that more and more multinational enterprises will do the same by cooperating with professional domestic enterprises like BAHEAL PHARM in the future,” said Fu Gang, Chairman of BAHEAL PHARM.

       

Work Together for the Blueprint and Open up the New Voyage in the Marketing of Prescription Drugs

       

BAHEAL is not a traditional porter-like business but a technology-intensive service supplier. We sell products and provide services. We hope that we can help a large number of branded drugs to fulfill the management of supply chains in retail enterprises in the future. Currently we are also making proactive efforts in facilitating classification of retail drugstores. We are looking forward to cooperate with more multinational companies to promote new development of the pharmaceutical industry together,” added Chairman Fu Gang.

       

WU Han, President of Sinohealth CMH said, “The cooperation between BAHEAL PHARM and Takeda Pharmaceutical is of great significance to the pharmaceutical field and the future development of retail drugstores. Sinohealth is also happy to facilitate more efficient landing of their cooperation with its rich expertise in data management and excellent resource integration platform.”

       

Many years of development has enabled the multinational pharmaceutical enterprises with operations in China to know the Chinese market well and their cooperation with domestic counterparts will be more frequent and the cooperation patterns more diversified in the context of an accelerating calibration in China with the world as well as the constantly identified importance of the pharmaceutical market in China. In a time of mobile Internet, BAHEAL PHARM is welcoming the development of the market with a proactive attitude and maintains close cooperation with many a well-known multinational company, including IBM and Oracle, among others, based on its strong power for synergetic development of the ecosystem.