Hunan Common People Medical Chain Co., Ltd. (hereinafter referred to as "ordinary people") intends to acquire Anhui People's Top Regional Pharmaceutical Chain Company, Anhui Common People Yuanda Pharmacy Chain Co., Ltd. (hereinafter referred to as "ordinary people"). Recently, it was reported that the common people had sent personnel to enter the common people's edge stores for inventory.
On July 25, the marketing director of the common people Wang Li said that the company did reach a preliminary cooperation intention with common people, but she refused to disclose the progress of the incident update. People's chairman Xie Zilong also admitted that the two companies are in close contact, but the acquisition has not yet been completed.
If the acquisition is successful, the common people will leap into the first place in China's pharmaceutical retail chain. The 2010 Chinese pharmacy rankings show that the combined sales of ordinary people and common people in 2010 amounted to 4.3 billion yuan, surpassing the number one sales of the first-ranked Neptune Chain Pharmacy Co., Ltd. by nearly 1 billion yuan.
Founded in 2003, People's Fate is one of the chain pharmacy enterprises in Anhui Province that earlier issued the banner of affordable pharmacies. According to Anhui's total pharmaceutical retail sales of 11.8 billion yuan in 2010, the company's sales share accounts for about 1/10 of the province's total. Against the background of increasingly low profits in parity pharmacies, the common people are the more successful pharmaceutical retail enterprises in the local diversification transformation.
What is quite controversial is that the "diversity" of the people's destiny has crossed the field of medicine, not only expanding into daily necessities in products, but even opening fitness centers and fresh supermarkets. In April 2011, some people complained on the website of the Hefei City Government that the people ’s fate pharmacies are mixed, with daily necessities in the store, and non-drug insurance cards. The Municipal People's Insurance Bureau responded by saying that before 2010, many pharmacies in Hefei's Yuanyuan Pharmacy had been imposed fines for illegal use of social security cards.
"Similar situations occur from time to time, and there are many loopholes in the medical insurance system, but in general, the development of people's fate in Anhui is not bad." An Anhui local industry source said.
The reason why the company with "good development" is to be sold to the common people. Some people familiar with the matter said that the main reason is that the common people give higher prices, and the chairman of the common people also just intends to give in.
Prior to this, the popular buyer has been the National University Pharmacy under Sinopharm. Since the second half of 2010, the National University Pharmacy began to expand in Anhui. As of the end of 2010, the number of stores in Anhui increased to about 20, of which 11 were acquired through the acquisition of 11 stores under the "Tianjian Guoyaotang" Five were from stores that acquired Hefei Fahrenheit Pharmacy, and four were self-built.
However, the rapid expansion of the National University Pharmacy under the aura of state-owned assets has also caused controversy. "The acquisition of SINOPHARM is the most radical. It takes 100 million (acquisition) for a not-so-good company. The difficulty of integration is still very large." An analyst in the pharmaceutical industry said.
The People's Big Pharmacy, established in 2001, is a large pharmaceutical chain enterprise developed from a single-operated pharmacy. In addition to retailing pharmaceuticals, it is also engaged in wholesale and manufacturing of pharmaceuticals. In 2008, the common people received more than 80 million US dollars of venture capital from Swedish EQT Partners and others. Xie Zilong once said in public that the company strives to achieve listing in 2012.
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