Alibaba Group’s plan to track and sell drugs online has come to an abrupt end in the opposition of pharmacies. Alibaba Group’s Ali Health announced that it has handed over its drug electronic regulatory system to the China Food and Drug Administration, and the SFDA actually suspended this. Set of electronic drug regulatory systems. Ma Yun’s private fund and the RMB 1 billion invested by the Ali Group seem to have been wasted. Why did Ma Yun not have the courage to challenge the SAIC? Ali's plan to use the e-commerce model to monopolize the Chinese drug sales market has encountered setbacks because of the move from the pharmaceutical factory to the chain of pharmacies.
The China Food and Drug Administration and Ali Health can use electronic systems to track information on the manufacture, composition and expiration date of the drug. Because of the overall opposition of the pharmaceutical industry, the Food and Drug Administration has indicated that it will revise the part of the regulations on electronic drug regulation, and is seeking advice. Suspend the system. Obviously, the feedback collected during the revision of the regulations will be the appeal of the industry's interests, and the system of Alibaba's health investment of over 100 million yuan is basically ruined.
Ali Health was established in 2014. Its predecessor was the data company CITIC 21st Century. In 2005, CITIC established a drug electronic supervision system in cooperation with the Food and Drug Administration. In 2014, Ali Group and Ma Yun’s private equity fund Yunfeng Fund jointly acquired a 54% stake in CITIC’s 21st century. CITIC’s 21st century was renamed Ali Health after being included by Ma Yun. Ali's online sales of over-the-counter drugs was handed over to Ali Health, and Ali was healthy and ambitious to join the regulation of the Chinese pharmaceutical market. China's pharmaceutical market is a large market with annual sales of hundreds of billions of dollars and millions of people in the industry. The Ali Group wants to divide the cake and occupy most of the market share after the government allows online retailing of prescription drugs, but their Ambition and the money paid have the opposite effect.
Ali's health electronic supervision system has a role in propaganda, which is to strengthen market competition and help to lower the price of medicines. For many years of medical reform in China, lowering the price of medicines has always been the goal pursued by the government, and the public is also happy to see them. But the actual consequence is that the pharmaceutical factory will no longer produce drugs that have reduced prices, and will increase the price after the drugs are changed. The failure of Ali's health may come from this point. It fails to see the strong foothold of the interests of all parties in the real world, even if the government departments can not resist the pressure of the entire industry.
China's pharmaceutical sales market is a big cake of 200 billion yuan
Ali Health not only failed to bring more sales to Ali Group, but also brought more business to Ali Group's Alipay. Instead, it lost its sole source of income because of the suspension of the drug electronic regulatory system. According to its published earnings report, the electronic drug regulatory system generated revenue of HK$37 million for the financial year ended March 31, 2015. Ali Health's share price fell 14% in Hong Kong on Monday, the current share price is 4.15 Hong Kong dollars per share, the highest in 52 weeks is 14.32 Hong Kong dollars. Ali Health emphasizes that the electronic drug regulatory system belongs to the China Food and Drug Administration. Ali Health is only responsible for operation and maintenance, and does not comment on the transfer system and follow-up issues with the SFDA. However, the Food and Drug Administration will cancel the enforcement of electronic surveillance code scanning and data uploading, and adjust the drug electronic supervision system to the drug traceability system, effectively stopping the drug electronic supervision system.
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