Shanghai Pharmaceuticals has found success with its nationwide contract sales organization, or CSO service in enhancing the efficiency and accessibility of innovative medicine developed by influential pharmaceutical companies, ultimately benefiting enterprises, medical institutions, and patients across the nation.

Situated as a pivotal hub for multinational corporations in China, Shanghai hosts the operations of 18 of the top 20 global pharmaceutical giants and 17 of the top 20 medical device firms. Leveraging this strategic position, the CSO framework pioneered by Shanghai Pharmaceuticals, which boasts an expansive national network spanning over 70,000 medical institutions across 25 provinces, empowers pharmaceutical companies to concentrate on their core research and development endeavors in innovative medicine while entrusting Shanghai Pharmaceuticals with marketing and distribution. This collaborative approach not only drives down the cost of medicines but also extends their accessibility to patients nationwide.

Since the inception of its CSO model in 2016, Shanghai Pharmaceuticals has provided support for over 100 products from around 30 prominent global and domestic pharmaceutical enterprises. The company has further broadened its CSO services to encompass vaccines and has forged partnerships with over 300 domestic institutions specializing in medical cosmetology.

In a testament to its success, Shanghai Pharmaceuticals witnessed a threefold increase in revenue share from its CSO business in 2023 compared to 2020, with foreign pharmaceutical contracts constituting a substantial 90 percent of this growth, as confirmed by the company. Embracing technological innovation to enhance operational efficiency, the company has introduced a digital marketing platform that integrates blockchain technology, ensuring full-process compliance and meticulous oversight.

Li Yongzhong, executive director and CEO of Shanghai Pharmaceuticals, emphasized the pivotal role of streamlined and compliant CSO operations in delivering tangible value to the industry. He underscored the significance of this commitment in fostering fruitful partnerships with multinational pharmaceutical entities, solidifying Shanghai Pharmaceuticals' position as a pioneering force in the realm of healthcare distribution and services.

Source: Shanghai Observer