Guangzhou's 21st Century Business Herald informed that many Chinese pharmaceutical companies and the internet providers are coming together to set their foot into health and drugs distribution line of work online. The Shanghai Pharmaceuticals holding Co. and the Alibaba Group are representing the two camps.
Shanghai Pharmaceuticals made an announcement on 9th of March that the formation of ‘SPH Grand Health Cloud Business Co’ will be a trade-oriented e-commerce organization which will provide Online-to-online sales of health management services and prescription of drugs to patients.
The head of strategic operations at Shanghai Pharmaceuticals, Liu Dawei stated that this new venture - SPH is planning to build its name in the market of prescription drugs and will also take care of the drugs which are not included in China's national medical insurance in a span of six months. Liu further told that SPH will further expand their sales horizon to drugs which will cover more areas such as antibiotics, diabetes cancer, and liver disease in 18 months after the six-month period, and to all the drugs in a next five years.
SPH is also planning to set online platforms which will generate electronic prescription, provide drug information management and patient information management, as per Liu. With this, Shanghai Pharmaceuticals will be able to work with approximately 15,000 medical institutions. Liu said that SPH will be the first entity which will fill online prescriptions for patients.
The Chinese newspaper commented that even if China has not yet lifted the constraint on selling prescription drugs on online basis and the nation’s information network in hospitals differs at a great extend, both the internet and the pharmaceutical companies have not been deterred by the threats and have moved further into the online-based medical services and drug distribution line of work.