Development Strategies For Fujian Pharmaceutical Distribution Enterprises Under The Background Of New Medical Reform

The pharmaceutical industry is an important part of our national economy which has close connection with people’s health and quality of life. It is the matter vital to national wellbeing and the people’s livelihood On March 17th 2009, the CPC Central Committee and the State Council issued Opinions on Deepening the Health Care System Reform, raising the goal of establishing the medical and health system with Chinese characteristics and that everyone is entitled to basic health care services, and of raising the health level of the Chinese people, which marks the launch of China’s third round of medical reform. In March 2012, the State Council issued The Planning and Implementations of Deepening Health System Reform during the Twelfth Five-Year Guideline, which clearly indicates the promotion of pharmaceutical production and circulation reform and the regulation of the production and circulation order, and then the overall planning of medical reform.Pharmaceutical distribution companies, as the intermediaries of medicine circulation, are the bridges between drug producers and consumers. The reform of pharmaceutical distribution system is the core issue and major starting point of medical and health system reform. There are various problems in the current pharmaceutical distribution market, such as circulation disorder, unbalance of management system, unreasonable allocation of resource and so on. As a result, it is worth discussing and analyzing the ways to further regulate pharmaceutical distribution market and then promote the healthy and organized development of pharmaceutical distribution industry in our country.Under the background of New Medical Reform, based on the circulation of commodities and market theory, the scale economic theory, the theory of mergers and acquisitions and Porter’s five forces analysis model, this paper, with pharmaceutical distribution companies in Fujian as major objects of study, make an analysis of the various elements influencing the development of pharmaceutical distribution companies in Fujian. Besides, by discussing the general situation of New Medical Reform and pharmaceutical distribution, the paper makes a research and analysis of the reasons for the problems that Fujian pharmaceutical distribution companies are facing, such as low industry concentration, high risks of policy changes and homogeneous competition. Moreover, this paper examines the opportunities and challenges to the pharmaceutical distribution companies in Fujian Province brought by the new medical reform policy and makes a concrete description of the effects of the new two-vote system policy. Finally, this paper puts forward the development strategies of the pharmaceutical distribution companies in Fujian:increasing the competition strengths and market share of the pharmaceutical distribution industry by speeding up M & A and restructuring; implementing differentiated strategies to avoid homogeneous competition; transforming the pharmaceutical distribution business model; enhancing the competitiveness by establishing strategic alliances; strengthening industry cooperation mechanism and actively participating in policy formulation.The implementation of the above-mentioned development strategies is of great significance to promote the integration of large-scale and intensification of pharmaceutical distribution companies after New Medical Reform. It can also strengthen the distribution coverage ability of pharmaceutical distribution companies, and promote the transformation of the business model and the development of pharmaceutical services industry. At last it will enhance the competitiveness of enterprises and then promote the healthy development of pharmaceutical distribution industries.