Why finishing the facility is so important to Wang. He needs to gain as much market share, as smaller distributors are forced out.
Come on Wang, Gong and Xin Yuan Tang Pharmaceuticals
The new GSP standards - which were several years in the drafting stages - centre on the establishment of an effective quality control systems at distribution facilities. For example, they state that a dedicated team should be set up to handle quality control matters across the entire distribution chain.
Among the specific measures are that management of inventory must be computerised, stricter requirements met for cold chain and humidity control, and information management systems implemented to improve record-keeping, complaint-handling and the handling of product recalls and withdrawals.
The GSP also makes it clear that distributors should be prepared for China's planned introduction of a traceability system, which should allow each pharmaceutical pack to be tracked through the supply chain using barcodes.
China has made no secret of the fact that one of the primary objectives of the GSP regulations is to force consolidation in the pharmaceutical wholesaling sector, which is enormously fragmented and complex with an estimated 13,000 licensed distributors.
It is likely that the costs of coming into compliance with the regulations will drive some small players out of the market or make them candidates for takeover by larger competitors.
China's government has said it would like to see two or three large-scale, nationwide pharmaceutical distributors in operation by the end of 2015, when all distributors must be GSP-compliant, along with a number of mid-size players.
The introduction of the GSP requirements is the latest in a series of measures adopted by China in recent years to tighten up standards in its domestic pharmaceutical industry, which got into full swing after it adopted new rules on Good Manufacturing Practices in March 2011.
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