Description
SWOT ANALYSIS OF SHANGHAI PHARMACEUTICALS

Shanghai Pharmaceuticals

Parent Company

Shanghai Pharmaceuticals

Category

Pharmaceuticals

Sector

Health care

Tagline/ Slogan

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Third largest pharmaceutical company & second largest pharmaceutical USP distributor in PRC

STP

Pharmaceutical business, pharmaceutical distribution and supply chain Segment solutions and pharmaceutical retail.

Target Group

Pharmaceutical manufacturers, dispensers, retail outlets, hospitals

It is the only integrated pharmaceutical company in the PRC with leading positions in both pharmaceutical product and distribution Positioning markets.

SWOT Analysis

1. They have established business connection with six prime vaccine manufacturers in the world, namely Pfizer, Merck Sharp & Dohme, Sanofi Pasteur, Novartis, GlaxoSmithKline and Abbott, 2. A strategic agreement with the Guangdong CDC has further increased the profit margin 3. They have vertically integrated business model which maximizes value creation 4. Manufacturer of technologically superior cost efficient with high gross margin drugs 5. Distributes nearly 19,000 pharma products through 40+ subsidiaries Strength and more than 30 logistical centres

1. Stringent Chinese regulations means restrictive operations Weakness 2. High reliance on Chinese markets

1. Increased propagation of medical insurance in china Opportunity 2. Increasing Chinese ageing population

3. Expected increase in the pharma market has a large expansion opportunity. 4. Global expansion and acquisition of other smaller firms

1.Increase in raw material and labor costs 2. Elevated financing costs due to the tapering of monetary policy, Threats 3. The execution of the new GMP standards.

Competition

1.Shanghai Pharmaceutical Group Co. 2. China Pharmaceutical Group Central Co Ltd. 3. Guangzhou Medical Group Co Ltd. Competitors 4. Tranjin Medical Group Co Ltd.



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