Baiyang Medical and CSL Behring Partner to Expand Retail Distribution of Ruide Human Albumin in China

On December 6, Baiyang Pharmaceutical Group Co., Ltd., a pioneer in China’s new pharmaceutical distribution platform, entered into a strategic partnership with CSL Behring, the world’s leading brand in human albumin, for the Chinese retail market. Through its innovative distribution model, Baiyang Pharmaceutical will expand the availability of human albumin products manufactured by Wuhan Zhongyuan Ruide Biological Products Co., Ltd. (“Ruide”), a subsidiary of CSL Behring, to retail outlets across China, thereby providing patients nationwide with effective and accessible medication solutions. This marks another global leader in the biopharmaceutical industry joining Baiyang Pharmaceutical’s new distribution platform, following Takeda, Itochu, and Merck & Co.

CSL Behring’s Red Human Albumin Joins Baiyang’s New Distribution Platform

Human serum albumin boasts a substantial market size both in China and globally. Allied Market Research recently released a report titled “Albumin Market by Product and Application - Global Opportunity Analysis and Industry Forecast, 2014-2023.” According to the report, the global albumin market was valued at $5.94 billion in 2017 and is projected to reach $10.31 billion by 2023, representing a compound annual growth rate (CAGR) of 9.6% from 2017 to 2023.

Human albumin is considered a life-saving product derived from human plasma and used to treat various diseases. Despite its significant market potential, sales in the domestic market face severe challenges. On one hand, competition among human albumin products available in China (including both imported and domestically produced) is intense. On the other hand, national policies aimed at eliminating the reliance of medical institutions on drug revenues have imposed strict controls on the proportion of drug costs in healthcare spending. As a high-value medication, human albumin is seeing an increasing shift in prescriptions from hospitals to the out-of-hospital market.

Facing the dual challenges of market dynamics and policy changes, CSL Behring, which holds a dominant share of the human albumin market, must also adjust its strategies. Haochang Chen, Executive Director of Commercial Operations at CSL Behring China, stated, “As a global leader in the plasma protein biotherapeutics industry, CSL Behring is committed to developing and providing innovative biological therapies for patients, driven by our promise to serve and protect the health and well-being of people worldwide. In today’s diversified market, we have chosen to partner with platform companies like Baiyang Pharmaceutical Group. We hope to leverage Baiyang’s professional digital marketing capabilities and robust marketing network to help us promote our high-quality products through omni-channel distribution. Baiyang Pharmaceutical Group has experienced rapid growth in recent years. Looking ahead, our collaboration will not be limited to the retail layout of albumin products; we aim to establish a comprehensive strategic partnership with Baiyang to deliver better services and solutions for patients.”

Fu Gang, Chairman of Baiyang Pharmaceutical Group, stated, “CSL Behring is a major supplier of human serum albumin in China and a new strategic partner for Baiyang Pharmaceutical’s new distribution platform. The Baiyang New Distribution Platform has not only accumulated extensive experience in new distribution collaborations through partnerships with multinational corporations such as Takeda Pharmaceutical and Merck & Co., but has also established strong cooperative relationships with more than 12,000 large and medium-sized hospitals and over 200,000 pharmacies across China. Through this new distribution model, we aim to facilitate the nationwide retail placement of CSL Behring’s high-quality products, enhancing drug accessibility while providing brand education and precision marketing, thereby benefiting more Chinese patients suffering from rare and severe diseases.”

“4+7” Price Reduction Solution: New Distribution Platform Helps Pharmaceutical Companies Reduce Costs and Improve Efficiency

Recently, the "Document on Centralized Drug Procurement in 4+7 Cities" was officially released, marking the formal launch of a national pilot program for centralized drug procurement. The document indicates that, with the approval of the Central Committee for Comprehensively Deepening Reforms, the state has organized a pilot program for centralized drug procurement, covering 11 cities: Beijing, Tianjin, Shanghai, Chongqing, Shenyang, Dalian, Xiamen, Guangzhou, Shenzhen, Chengdu, and Xi’an (hereinafter referred to as the “4+7 Cities”). The release of this document will further accelerate the trend of declining drug prices and reshape China’s drug pricing mechanism.

Against the backdrop of the “4+7” policy documents and the separation of prescribing from dispensing, DTP (Direct-to-Patient) pharmacies capable of handling the out-of-hospital supply of new and specialty drugs have opened up new sales channels for pharmaceutical companies. Based on calculations from annual reports of listed companies and publicly available data, the domestic DTP pharmacy market size in China was approximately RMB 13 billion in 2017. The growth rate of the DTP pharmacy sector is expected to exceed that of the overall pharmaceutical retail market, with the domestic DTP pharmacy market size projected to reach around RMB 19 billion by 2020.

Chen Haochang stated that while CSL Behring is the leading brand of human serum albumin in hospital channels, retail channels will be a key focus for robust development amid shifting policies and market trends in China. Over the next decade, the company aims to expand its market presence by leveraging its strong R&D capabilities and Baiyang’s innovative distribution model as a strategic partner.

To help companies such as CSL Behring navigate policy and market shifts and capitalize on the substantial growth potential of the Direct-to-Patient (DTP) market, Baiyang has strategically optimized its channel layout. By leveraging its robust marketing network and digital precision marketing capabilities accumulated over many years, Baiyang has built a new distribution platform. This platform addresses bottlenecks in hospital sales channels for traditional pharmaceutical manufacturers, enabling them to access safe, efficient, and intensive services during their transition from hospital-centric marketing to the out-of-hospital market. Fu Gang stated, “With this significant competitive advantage that distinguishes it from traditional distribution models, we believe that more multinational pharmaceutical companies will entrust their internationally leading products and treatment solutions to professional platform-based enterprises like Baiyang Pharmaceutical Group, thereby benefiting more patients in China.”

As policies such as the “Two-Invoice System,” the separation of prescribing from dispensing, and the coordinated reform of medical care, health insurance, and pharmaceuticals are advanced, China’s pharmaceutical distribution channels are facing new challenges and opportunities. As a pioneer of new pharmaceutical distribution platforms in China, Baiyang Pharmaceutical Group integrates and optimizes industry resources to provide comprehensive solutions for upstream and downstream enterprises. Leveraging its digital precision marketing capabilities—through customer tagging, process digitization, and marketing automation—Baiyang is fully supporting the transformation and upgrading of pharmaceutical manufacturers and pharmacy chains, driving the accelerated transformation of China’s healthcare industry and securing a significant position in the global healthcare landscape.