Pharmaceutical companies' sales expenses are abnormally high

As soon as the news of the Ministry of Finance's "2019 Annual Inspection of Accounting Information Quality in the Pharmaceutical Industry" was released, the industry wailed and the pharmaceutical sector of the stock market plunged. Why did the market react so violently to this work of the Ministry of Finance? Our special observer, licensed pharmacist and patent agent Dai Xulin analyzed this, saying that the direct buyers of drugs are usually health insurance institutions. In order to survive, market-based health insurance providers must strive to improve the cost effectiveness of the services they purchase, to meet the medical needs of the insured at minimal cost and to maximize benefits.

Unfortunately, China's primary care market is not a "buyer" due to the lack of a market-driven buyer, which is an official organization. This facilitates some pharmaceutical companies to lure doctors to use their drugs unreasonably through profit, which eventually causes bad money to expel good money and turns the pharmaceutical market into a "lemon market". Therefore, when the Ministry of Finance launched an inspection of the quality of accounting information in the pharmaceutical industry, it was naturally a field of woe and wailing. Wu Yanbing, a well-known pharmaceutical marketing expert and our special observer, also said that the Ministry of Finance decided to randomly select 77 pharmaceutical companies to carry out accounting information quality inspection work in the pharmaceutical industry has caused a huge uproar, the stock market pharmaceutical sector plummeted, fully illustrating that the industry is still a big problem, especially the "high cost of sales" problem. For these problems, the state is certainly to vigorously rectify.