4 billion! Johnson & Johnson medical equipment received a super order

Medical Network November 9th, 4 billion medical equipment procurement big orders, domestic pharmaceutical circulation giants and international medical machinery giants join forces, will become another major event in the medical device industry this year.
The giant’s shot is 4 billion big orders.
Yesterday, according to the Wuhan Morning News, on November 6, during the first China International Import Expo, the Hubei Provincial Trading Group's procurement demand release and on-site signing was held in Shanghai. At the signing ceremony, Jiuzhoutong signed a contract with Johnson & Johnson, the former will purchase from the latter. About 4 billion yuan of ultrasonic scalpels and staplers.
One is currently the largest private pharmaceutical distribution listed company in China, and the other is the world's largest health care. Health care products And consumer care products company. Strong combination, the shot is a 10-digit amount.
In an interview with reporters, Gong Yihua, general manager of Jiuzhou Tong Pharmaceutical Group, said that Jiuzhoutong has a long-term cooperation with Johnson & Johnson, and the amount of this contraction accounts for 1/4 of the annual import volume of Kyushu.
The 'friend circle' of the giants is getting more and more lively
In 2018, the major events in the field of medical device circulation continue, and the pharmaceutical distribution giants are leading events.
At the beginning of the year, Shanghai Pharmaceuticals' acquisition of 'Kangdele Malaysia' was approved by the Chinese Ministry of Commerce for anti-monopoly approval. It was finally completed on February 2, and Shanghai Pharmaceuticals acquired 100% equity of 'Kangdele Malaysia' at a delivery price of US$576 million. Control all of Condé China's business.
Kantler is one of the top three in the US pharmaceutical distribution industry. Kantler China's business is divided into five sectors, including drug Distribution, medical device distribution, hospital direct sales, specialty drugs, and special pharmacies and commercial technology. The “Statistical Analysis Report on the Operation of Drug Circulation Industry (2016)” released by the Ministry of Commerce shows that Kantler China’s business achieved a revenue of approximately RMB in 2016. 25.4 billion yuan, ranking eighth in the country. This acquisition makes Shanghai medicine In the pharmaceutical and equipment distribution business is even more powerful.
During the same period, BD Medical announced that it has established a strategic partnership with China Resources Pharmaceuticals (full name: China Resources Pharmaceutical Commercial Group Co., Ltd.) to officially authorize China Resources Pharmaceuticals. medical instruments Ltd.'s national distributor of 5 basic consumable products - syringes (including disposable self-destructive vaccine syringes), anesthesia bags, tees, heparin caps and two indwelling needle products.
On September 25, China Resources Pharmaceuticals Co., Ltd. (in full use of its own funds to subscribe for the non-public offering of shares of the Inter Group in cash, totaling no more than 650 million yuan.
Inter Group is the regional leader of Zhejiang pharmaceutical circulation industry enterprise One of them, mainly engaged in pharmaceuticals, medical equipment wholesale and retail business, business covers drug sales, Chinese herbal medicine sales, medical equipment sales three sectors. This is regarded as the action of China Resources Pharmaceutical Commercial Plus Medical Devices business.
In October of this year, BD Medical once again teamed up with another Chinese pharmaceutical circulation giant, Sinopharm, to reach a strategic alliance. The two sides will jointly promote extensive cooperation in medical products and services in China.
In addition, the Kyushu Express and Johnson & Johnson signed a large purchase of 4 billion yuan worth of high-value consumables, and the 'friend circle' of the giants is getting more and more lively.
Said monopoly, for early fashion
Under the trend of two-vote system of medical treatment and distribution, regardless of domestic or foreign medicines, equipment companies are increasingly valued by distributors' channel integration capabilities to achieve their strong grassroots, full coverage, unified distribution, and simple and efficient purposes. This has led to further improvement in performance. However, there are also voices that the cooperation of giants and the merger of small and medium-sized distributors by large pharmaceutical distribution companies will lead to a monopoly situation.
What needs to be seen is that the circulation trend of medicines and instruments is intensive development, which makes the industry more concentrated. It is well known that compared with the medical field, the equipment field is still in a 'small scattered' development stage, the giants are unknown. Oligarchs are hard to come by.
However, the field has a higher profit margin than pharmaceuticals, which has prompted more companies to enhance their equipment business in the past few years.
For example, Ruikang Pharmaceutical, which has sprung up everywhere, has risen from the top 100 pharmaceutical circulation companies to the top 10 in the past two years. It has developed from a regional pharmaceutical circulation leader to a national medical institution integrated service provider. Since 2013, Ruikang Pharmaceutical began to expand its medical device consumables business. Since 2015, it has expanded its overall business to Shandong Province. The network has covered 31 provinces and became one of the largest medical device circulation enterprises in China.
The semi-annual report of Ruikang Pharmaceutical in 2018 shows that its equipment circulation business achieved revenue of 5.774 billion yuan in the first half of the year, up 139.67% year-on-year. The medical equipment and consumables business grew at a high speed, directly sending Ruikang medicine into the domestic medical device circulation field. Four strong.
However, with the current domestic medical device circulation market size of 430 billion yuan, the market share of the top four domestic pre-device circulation including Ruikang Medicine is only 12%. The 'long tail effect' in the field of device circulation is obvious, the future There is a lot of room for improvement and integration. From this point of view, it is too early to say that the cooperation or merger of the giants will form a monopoly situation. In the absence of oligarchs, monopoly cannot be discussed.
Some analysts believe that the reason why international medical device giants choose to cooperate with domestic large-scale pharmaceutical distributors is because they value their channel integration capabilities, as well as their huge 'tentacles', and choose a large-scale distributor to distribute the products. Exploring the market that the equipment company has not entered before.
Of course, not all equipment companies have the ability to choose channels to develop business maps.
Many years ago, an industry insider analyzed that only imported brands such as BD, Johnson & Johnson, and Medtronic are able to make their own channels, or that some national products are easier to find distributors with sound channels.
However, some local low-cost consumables are difficult to have a unified distribution channel across the country. They are more concerned about how to concentrate channels on one or several distributors in distribution.