377 Pharmaceutical Brands Surpass RMB 100 Million in Retail Sales; 13 Achieve Over 100% Growth

According to the latest data from Menet, in 2018, there were 377 brands with sales exceeding RMB 100 million at the urban retail pharmacy terminal in China. Among the 13 brands with growth rates surpassing 100%, Qingdao Shuangjing Pharmaceutical’s Vitamin D Drops surged from RMB 266 million in 2015 to approximately RMB 1.3 billion in 2018, while Xian Janssen’s Abiraterone Acetate Tablets recorded sales of nearly RMB 143 million in 2018, representing a growth rate of 423.47%. What exactly drove the explosive growth of these brands?

377 Retail Pharmacy Brands Exceed 100 Million Yuan in Sales

Table 1: Brands with Retail Sales Exceeding RMB 100 Million at Urban Pharmacy Terminals in China in 2018

[Chemical] Digestive System and Metabolic Drugs: 2 Brands with Sales Exceeding RMB 1 Billion

Figure 1: Subcategory Distribution of 58 Digestive and Metabolic Drug Brands with Annual Sales Exceeding RMB 100 Million

Among the 58 chemical drug brands in the digestive system and metabolism category with annual sales exceeding RMB 100 million, these brands are distributed across eight subcategories. Diabetes medications account for 20 of these spots, with Bayer’s acarbose tablets surpassing the RMB 1 billion sales mark in 2018, achieving a growth rate of 5.47%. Vitamins occupy 16 positions, and Qingdao Shuangjing Pharmaceutical’s Vitamin D drops emerged as another brand that broke through the RMB 1 billion sales threshold in 2018, registering a remarkable growth rate of 118.30%. In recent years, Qingdao Shuangjing Pharmaceutical has been implementing its “Yue’er VD+” industry-commerce strategic initiative, establishing strategic partnerships with over 100 chain pharmacy retailers across more than 20 provinces and municipalities. Through these collaborations, the company has achieved a substantial increase in product sales volume.

[CN] Drugs for Respiratory Diseases: 3 Brands with Sales Exceeding RMB 1 Billion

Figure 2: Subcategory Distribution of 40 Respiratory Disease Drug Brands with Sales Exceeding 100 Million Yuan

Forty proprietary Chinese medicine brands for respiratory diseases, each with annual sales exceeding RMB 100 million, are distributed across three major subcategories. Among them, cough suppressants, expectorants, and antiasthmatics account for 14 brands. In 2018, two brands achieved sales exceeding RMB 1 billion: Nin Jiom Pei Pa Koa (Honey-refined Chuanbei Loquat Paste) from Kyoto Niann Ci An General Factory, and Jizhi Syrup from Taiji Group Chongqing Fuling Pharmaceutical Co., Ltd., with growth rates of 3.12% and 5.63%, respectively. Cold remedies account for 12 brands, with Ganmaoling Granules from China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. reporting 2018 sales exceeding RMB 1.834 billion and a growth rate of 28.45%.

[Chemicals] Cardiovascular System Drugs: 3 Brands with Sales Exceeding RMB 1 Billion

Figure 3: Subclass Distribution of 33 Cardiovascular Drug Brands with Annual Sales Exceeding RMB 100 Million

The 33 chemical drug brands in the cardiovascular system with sales exceeding RMB 100 million are distributed across seven subclasses. Among them, calcium channel blockers account for nine brands. In 2018, the brands with sales surpassing RMB 1 billion included Levamlodipine Besylate Tablets from Shihuida Pharmaceutical Group (Jilin) and Nifedipine Controlled-Release Tablets from Bayer, with growth rates of 5.57% and 4.75%, respectively. Lipid-lowering drugs account for seven brands, with Pfizer’s Atorvastatin Calcium Tablets maintaining a scale exceeding RMB 1 billion and achieving a growth rate of 5.39% in 2018.

13 Brands with Over 100 Million in Sales Achieved Growth Rates Exceeding 100%

Table 2: Brands with Over RMB 100 Million in Sales and a Growth Rate Exceeding 100% at Urban Retail Pharmacy Terminals in China, 2018

Among the 13 brands with annual sales exceeding RMB 100 million and growth rates surpassing 100%, four are OTC products. Among the non-OTC products, there are five antineoplastic agents, and one each for antithrombotic agents, endocrine therapy drugs, antidiabetic drugs, plasma substitutes, and infusion solutions. These product categories have traditionally been predominantly used in medical institution settings. However, as the outflow of prescriptions gradually gains momentum, sales of these categories at retail pharmacy terminals have surged. From a brand perspective, foreign pharmaceutical companies are currently leading the way: among the nine non-OTC products, AstraZeneca accounts for three spots, and Bayer holds two.

National Volume-Based Procurement (VBP) will be the dominant theme in the near term. Against this backdrop, pharmaceutical companies will increasingly prioritize retail channels. This is particularly true for brands that have not won bids but have cultivated the market for many years; having established a certain level of brand recognition among patients, they are better positioned to drive patients to purchase medications at pharmacies. Several years ago, foreign pharmaceutical giants such as AstraZeneca, Merck & Co., and Sanofi had already established retail teams in China to manage and maintain retail channels. As the detailed regulations governing prescription outflow continue to improve, the retail pharmacy terminal is expected to become even more vibrant in the future.

Source: Menet Database

Data Note: In Menet’s “Competitive Landscape of Chemical Drugs and Chinese Proprietary Medicines at Urban Retail Pharmacy Terminals in China,” the term “urban” refers to a statistical scope covering 298 prefecture-level cities and above, i.e., physical pharmacies in all prefecture-level and higher cities across China (excluding physical pharmacies in counties, townships, and villages). The aforementioned sales figures are calculated based on the average retail price of products at the terminal level.