Investment Case............................................................................................................................................................. 3
Drug Distribution – A Long-Term Growth Industry .................................................................................................................................................. 3
Government Support is Boosting Growth................................................................................................................................................................ 3
Industry Consolidation Could Offer Further Upside................................................................................................................................................. 3
EDL Makes the Biggest Even Bigger ...................................................................................................................................................................... 3
Drug Distribution Industry Overview ............................................................................................................................ 4
Planned Economy Stage (1950–1984) ................................................................................................................................................................... 4
Transitioning Stage (1985–1989) ............................................................................................................................................................................ 4
Market-oriented Stage (1990–present) ................................................................................................................................................................... 5
Current Industry Landscape ......................................................................................................................................... 5
Pharmaceutical Sales in China ..................................................................................................................................... 6
Major Challenges of the Drug Distribution Industry.................................................................................................... 7
Future Trends: The Impact of Healthcare Reform ....................................................................................................... 8
Industry Regulations and Policies ............................................................................................................................... 9
Competitive Analysis ................................................................................................................................................... 10
Industry Players ........................................................................................................................................................... 12
Drug Distributors: Financial Comparisons................................................................................................................. 23