POM in three months: buy, wait or sell?
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POMDOCTOR’s largest business supplies medicines to other pharmaceutical platforms, offline pharmacies and pharmaceutical wholesalers in China. These customers pay for the drugs, which third-party logistics providers deliver. The company also provides supply-chain management and platform-operation services to pharmaceutical platforms.
Its other main business is an internet hospital for patients who need ongoing chronic-disease care and repeat prescriptions. Patients mainly come through doctors’ existing offline relationships and use its app or WeChat official account for consultations and prescription renewals. Patients can also buy medicines after a pharmacist verifies their prescription. Drug sales account for nearly all internet-hospital revenue; consultation fees contribute much less.
This model depends on patients returning, contracted doctors continuing to participate and suppliers providing medicines. Dongguan Chaoyang Pharmaceutical Co., Ltd. and Guangzhou Guoying Pharmaceutical Co., Ltd. together supply most of its purchases. Chinese rules limit online diagnosis and treatment to follow-up care for specified common or chronic diseases already diagnosed at a physical medical institution. Foreign-ownership restrictions also mean POMDOCTOR operates its internet hospital and certain other restricted services through contractual control of Qilekang Digital Health rather than direct ownership.
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Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
POMDOCTOR LIMITED’s results hinge on repeat prescription purchases in China, pharmaceutical wholesale margins and concentrated sourcing from suppliers including Dongguan Chaoyang Pharmaceutical and Guangzhou Guoying Pharmaceutical, rather than the supplied companies.
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