China Jo-Jo Drugstores Enters into Strategic Cooperation Framework Agreement with Zhejiang Medical Insurance Bureau
HANGZHOU, China, June 24, 2019 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD) ("Jo-Jo Drugstores" or the "Company"), a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products and a healthcare provider in China, announced today that the Company has entered into a strategic cooperation framework agreement (the "Agreement") with the Zhejiang Medical Insurance Bureau (the "MIB") in June 2019. By entering into the Agreement, the Company joins the first batch of third-party distribution service partners of the government officially undertaking the provincial medical insurance project. As a designated delivery service agent for the provincial medical insurance project, the Company expects to improve its negotiation position for drug procurement, expand its retail pharmacy coverage, and highlight its corporate brand and influence, providing a strong foundation for the rapid expansion of the Company's franchising operations.
In 2019, the State Council's government work report and the provincial government's medical insurance policy added 12 common chronic diseases such as hypertension and diabetes into the scope of covered diseases and allows urban and rural residents to purchase prescribed drugs for these diseases at pharmacies. This policy requires cooperation between the government and private enterprises and enables medical chain pharmacies to comprehensively establish and operate third-party delivery service mechanisms for drugs. Pursuant to the Agreement, both parties agree to fully cover insured residents in Zhejiang province, ensure a stable supply of medications and prompt drug delivery. The MIB agrees to authorize the Company to operate as a third-party distribution service partner to undertake the provincial medical insurance project and assist the Company in solving problems in distribution services to create an improved business environment. The Company agrees to ensure its stores can cover every county and city in the province, regularly publish a list of commonly used drugs for chronic diseases and a list of delivery service stores to the public, and strictly implement the relevant systems for drug and prescription management in the healthcare sector. As part of the Agreement, the Company agrees to sell medical insurance-related chronic disease drugs which are on the provincial medicine procurement platform, execute the same payment standards as public hospitals and not all the drugs purchased from the provincial medicine procurement platform to enter other sales channels.
Mr. Wei Hu, Chief Operating Officer of Jo-Jo Drugstores, Inc., commented, "Currently, of the 1,304 urban and rural residents' medical insurance chronic disease drug distribution service stores, we occupy 237, covering 89 counties and cities in Zhejiang province, providing 195 chronic disease medicines. These facilities essentially cover the drug distribution needs of chronic patients and we are continuously working to improve access for the medicinal treatment for chronic disease medicines for urban and rural residents."
Mr. Hu continued, "In addition to the traditional selling methods in our retail stores, we have four additional sales channels: online booking, O2O booking, B2C booking, and shop booking. By synchronizing with Meituan, Jingdong, Hungry, Ali Health, micro-Mall and cooperating with five other platforms, we can deliver drugs in half an hour for customers within 4 kilometers, and achieve distribution volumes similar to the top chains in Hangzhou. We expect to open a 24-hour unmanned smart drug store in Hangzhou to meet customers' needs."
About China Jo-Jo Drugstores, Inc.
China Jo-Jo Drugstores, Inc. ("Jo-Jo Drugstores" or the "Company"), is a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products in China. Jo-Jo Drugstores currently operates retail drugstores and an online pharmacy. It is also a wholesale distributor of products similar to those carried in its pharmacies and it cultivates herbs used for traditional Chinese medicine. For more information about the Company, please visit http://jiuzhou360.com. The Company routinely posts important information on its website.
Forward-Looking Statements
This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company encourages you to review other factors that may affect its future results in the Company's annual reports and in its other filings with the Securities and Exchange Commission.
For more information, please contact:
Company Contact:
Frank Zhao
Chief Financial Officer
+86-571-88077108
frank.zhao@jojodrugstores.com
Steve Liu
Investor Relations Director
steve.liu@jojodrugstores.com
Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-917-609-0333
tina.xiao@ascent-ir.com
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SOURCE China Jo-Jo Drugstores, Inc.
