Understanding Health Policy A Clinical Approach 3rd Edition

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In 2005 the market share of the top three pharmaceutical distributors in China amounted to about 25 percent of the industry’s total sales revenue, compared to market shares of 96 percent and 67 percent among the top three pharmaceutical distributors in the United States and Japan, respectively. 11 At the regional and local levels, however, some wholesalers dominate specific provinces. 12 There also is considerable market concentration at the final key link in the supply chain: the pharmacies owned by China’s more than 19,000 hospitals, which account for about 80 percent of all retail pharmaceutical market share. 13 Partly in response to concerns about increased retail prices stemming from multiple layers of intermediaries, in 2000 the State Food and Drug Administration (SFDA) established fifty interprovincial pharmaceutical retail chain enterprises. 14 Still, there are usually six to nine supply-chain links from production to final sale to patients.

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