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Reorganization of international express and Asia-Pacific pharmaceutical business: Concord Kirin’s strategic choice


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As an influential company in the pharmaceutical field, Kyowa Kirin's move to sell its Chinese subsidiary for RMB 720 million and initiate the reorganization of its Asia-Pacific business has attracted widespread attention and discussion. This decision is not an isolated incident, but is closely linked to the development of the international express industry and the economy and policies of the Asia-Pacific region. From the perspective of international express delivery, efficient logistics and distribution are crucial to the pharmaceutical industry. The transportation of medicines requires strict temperature control, timeliness guarantee and compliant operating procedures. With their advanced logistics technology and global network, international express companies can meet the special requirements of pharmaceutical products in cross-border transportation. However, the fluctuation of international express costs, differences in service quality and restrictions of policies and regulations of various countries have also brought challenges to the supply chain management of pharmaceutical companies. In the Asia-Pacific region, the pharmaceutical markets of various countries show different characteristics and development trends. As one of the largest pharmaceutical markets in the world, China has huge consumption potential and increasing medical needs. However, the intensification of market competition, changes in the policy environment and the rise of local companies have put foreign-funded pharmaceutical companies under increasing pressure. Other Asia-Pacific countries such as South Korea also have unique development advantages and challenges in the pharmaceutical field. On the one hand, the business restructuring decision of Concord Kirin is to optimize resource allocation, focus on core business, and improve the competitiveness of enterprises in the Asia-Pacific region; on the other hand, it also reflects its judgment and response strategy on the future development trend of the Asia-Pacific pharmaceutical market. By selling its Chinese subsidiary, Concord Kirin can obtain funds for R&D innovation, expansion of other markets, or strengthening investment in existing advantageous areas. For the entire pharmaceutical industry, this move of Concord Kirin has certain enlightenment significance. Enterprises need to pay close attention to market dynamics and flexibly adjust their business layout to adapt to the ever-changing market environment. At the same time, strengthening cooperation with international express delivery companies and establishing an efficient and stable supply chain system are crucial to ensuring the timely supply and quality safety of drugs. In addition, the international express delivery industry can also draw experience from Concord Kirin's business restructuring. Express delivery companies can further optimize services, provide customized solutions for the special needs of the pharmaceutical industry, and increase service added value. At the same time, strengthen communication and cooperation with pharmaceutical companies to jointly cope with various challenges in cross-border logistics and achieve mutual benefit and win-win results. In short, there is an inextricable connection between Concord Kirin's Asia-Pacific business restructuring and the international express delivery industry. This case provides a useful reference for us to deeply understand corporate strategic decisions, industry development trends, and the collaborative cooperation between international logistics and various industries.