JD Health Becomes Strategic Distribution Partner for UCB China to Multi-Channel Distribute Allergy Medication Zyrtec

On April 21, UCB China signed a cooperation agreement with JD Health and Keyuan Trade, announcing that JD Health and Keyuan Trade would become the “Strategic Cooperation Agents” of UCB China, responsible for the national distribution agency of UCB China’s anti-allergy medication Zyrtec (cetirizine hydrochloride tablets).

It is reported that this marks the first time JD Health has undertaken multi-channel agency services for pharmaceutical companies, covering online omnichannel operations as well as offline small and medium-sized chains and independent pharmacies. This development signals growing industry recognition of JD Health’s pharmaceutical distribution capabilities.

From left to right: Jin Enlin, Vice President of JD Health and General Manager of the Pharmaceutical Business Unit; Wu Xin, General Manager of UCB China; Chu Chenxi, General Manager of Keyuan Xinhai (Beijing) Medical Supplies Trading Co., Ltd.

Zyrtec is an original imported anti-allergy medication under UCB China. Its main indications include seasonal rhinitis, perennial allergic rhinitis, allergic conjunctivitis, and symptomatic treatment of allergy-induced pruritus and urticaria. As a fully imported anti-allergy drug, Zyrtec features rapid onset, prolonged efficacy, mild adverse reactions such as dizziness and drowsiness, and good drug tolerability. In recent years, with the continuous rise in the incidence of allergic diseases in China, market demand for second-generation antihistamines, represented by Zyrtec, has also grown rapidly.

Data shows that in 2019 alone, sales of systemic anti-allergy medications in the Chinese market exceeded RMB 6.5 billion, representing a year-on-year growth rate of 5%. Public hospitals (i.e., in-hospital channels) and pharmacies/retail outlets (i.e., out-of-hospital channels) each accounted for 50% of this market. Therefore, strengthening out-of-hospital distribution capabilities is one of the key measures to improve the accessibility of anti-allergy medications. UCB China has long been seeking partners with high-quality distribution capabilities for Zyrtec.

This partnership with JD Health and Keyuan Trade represents the latest initiative by UCB China to enhance its distribution capabilities for pharmaceuticals both within and outside hospital settings. Through close collaboration among the three parties, Keyuan Trade will be responsible for operations in the hospital market and top 100 pharmacy chain channels. Leveraging its pharmaceutical supply chain expertise and platform resources, JD Health will enable Zyrtec to reach a broader population in need. JD Health will also fully realize its value in the pharmaceutical distribution sector by capitalizing on its multi-channel service capabilities.

First, leveraging platform resources such as JD Pharmacy, JD Health’s pharmaceutical agency system, and JD Yaojingcai, JD Health has built an integrated online-to-offline (O2O) pharmaceutical distribution and channel coverage capability. As an influential O2O retail pharmacy in the industry, JD Pharmacy provides consumers with comprehensive, professional, and convenient medication purchasing and usage services, while supporting brands in building omnichannel marketing capabilities both on and off-platform. JD Yaojingcai covers all provincial-level administrative regions in China, excluding Hong Kong, Macao, Taiwan, Tibet, Xinjiang, and Qinghai; by the end of 2020, it had served over 230,000 terminal customers. Therefore, supported by omnichannel services, JD Health can help partners rapidly establish O2O integrated channel development capabilities.

Secondly, JD Health has established an integrated online-to-offline marketing and service system. For instance, leveraging JD.com’s comprehensive precision marketing capabilities enables JD Health to not only provide Zyrtec with extensive user reach and significantly improve marketing efficiency but also achieve effective matching between pharmaceutical products and users by tapping into the platform’s vast user base.

More importantly, leveraging platform resources such as JD Health Internet Hospital and JD Family Doctor, JD Health also possesses integrated pharmaceutical and medical service capabilities. This enables the company to help partners provide target populations with a one-stop healthcare solution that covers online consultations, prescription renewals and medication purchases, and home delivery of medicines.

Jin Enlin, Vice President of JD Health and General Manager of its Pharmaceutical Business Division, stated that with the appointment as UCB China’s “Strategic Cooperation Distributor” as a starting point, JD Health will leverage its integrated online-to-offline channel coverage, omni-channel marketing capabilities, and one-stop pharmaceutical and healthcare service platform to continuously strengthen its capabilities in pharmaceutical distribution. By partnering with more pharmaceutical companies to improve access to high-quality medicines, JD Health aims to jointly contribute to the health of the entire population.