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Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Thematic (Sector/Industry)

China Health care / Thematic (Sector/Industry)

<p>Numerous press outlets report that China&rsquo;s Food &amp; Drug Administration (CFDA) will release regulations permitting online sales of pharmaceuticals soon. This action should help the Chinese government in its efforts to lower drug costs for its citizens by:</p><ol><li>Creating a lower-cost channel to undercut the current multi-tier distribution channel that serves state hospitals (70% of the market);</li><li>Addressing the current shortage of pharmacists (China: 1.47/10,000 population; Global average: 6.02) through creation of larger dispensing platforms that increase productivity; and</li><li>Providing a more efficient channel for retail pharmacies to compete with hospital-based pharmacies.</li></ol><p>The addition of E-commerce should drive much-needed reforms that will benefit leading drug distributors and retail chains. &nbsp;The road will be long and bumpy.</p>

Numerous press outlets report that China&rsquo;s Food &amp; Drug Administration (CFDA) will release regulations permitting online sales of pharmaceuticals soon. This action should help the Chinese government in its efforts to lower drug costs for its citizens by:Creating a lower-cost channel to undercut the current multi-tier distribution channel that serves state hospitals (70% of the market);Addressing the current shortage of pharmacists (China: 1.47/10,000 population; Global average: 6.02) through creation of larger dispensing platforms that increase productivity; andProviding a more efficient channel for retail pharmacies to compete with hospital-based pharmacies.The addition of E-commerce should drive much-needed reforms that will benefit leading drug distributors and retail chains. &nbsp;The road will be long and bumpy.

Shanghai Pharmaceuticals Holding (601607 CH)

Shanghai Pharmaceuticals Holding (2607 HK)

Guangzhou Baiyunshan Pharmaceutical Holdings (874 HK)

Guangzhou Baiyunshan Pharmaceutical Holdings

Tong Ren Tang Technologies Co, Ltd. (1666 HK)

Mindray Medical International Ltd (ADR) (MR US)

Zhongyuan Union Cell & Gene Eng Corp (600645 CH)

Shandong Weigao Group Medical Polymer Co (1066 HK)

Zhejiang Conba Pharmaceutical Co, Ltd. (600572 CH)

Shanghai Shyndec Pharmaceutical (600420 CH)

Yantai Dongcheng Pharmaceuticl Gp (002675 CH)

Gz Bailing Group Pharm Co., Ltd. (002424 CH)

Jinyu Bio-Technology Co., Ltd. (600201 CH)

Xizang Haisco Pharmaceutical Group Co (002653 CH)

Beijing Tiantan Biological Products (600161 CH)

Hualan Biological Engineering (002007 CH)

Winning Health Technology Group Co., Ltd. A (300253 CH)

Winning Health Technology Group Co., Ltd. A

China Resources Sanjiu Medical & Pharma (000999 CH)

Chongqing Zhifei Biological Products (300122 CH)

Shenzhen Salubris Pharmaceuticals A (002294 CH)

Jiangsu Yuyue Medical Equipment & Supply A (002223 CH)

Jiangsu Yuyue Medical Equipment & Supply A

Harbin Gloria Pharmaceuticals Co, Ltd. (002437 CH)

Jilin Aodong Medicine Industry Group Co (000623 CH)

Shanghai Fosun Pharmaceutical (Group) (2196 HK)

Shanghai Kehua Bio Engineering (002022 CH)

Guilin Sanjin Pharmaceutical Co Ltd A (002275 CH)

Jiangsu Nhwa Pharmaceutical Co., (002262 CH)

Kangmei Pharmaceutical Co Ltd (600518 CH)

Tonghua Dongbao Pharmaceutical (600867 CH)

Anhui Anke Biotechnology (Group) (300009 CH)

Shanghai Kaibao Pharmaceutical Co,Ltd. (300039 CH)

Shanghai Fosun Pharmaceutical (Group) (600196 CH)

Guizhou Yibai Pharmaceutical Co, Ltd. (600594 CH)

Guangxi Wuzhou Zhongheng Group Co (600252 CH)

Guizhou Xinbang Pharmaceutical Co,Ltd. (002390 CH)

Zhejiang Hisun Pharmaceutical Co, Ltd. (600267 CH)

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.

Zhuhai Hokai Medical Instruments (300273 CH)

Shijiazhuang Yiling Pharmaceutical (002603 CH)

Changzhou Qianhong Bio Pharma (002550 CH)

China Resources Dubl Crne Phrmctl (600062 CH)

Joincare Pharmaceutical Group Ind Co. (600380 CH)

China Grand Automotive Services (600297 CH)

Jiangsu Kanion Pharmaceutical Co, Ltd. (600557 CH)

Zhejiang Huahai Pharmaceutical Co, Ltd. (600521 CH)

Opening of E-commerce Channel to Change China's Drug Market