Digitalization of Pharmaceutical Company-Hospital Transactions
Establishing Non-Face-to-Face and Online Distribution Networks
Building 'Logistics Centers' for Refrigerated Distribution Response
The pharmaceutical distribution market is also experiencing a shift towards non-face-to-face and online transactions. Whereas pharmaceutical sales representatives used to meet doctors one-on-one to promote and sell medicines, now medicines can be bought and sold with just a click. Pharmaceutical companies have been able to focus on new drug development and production, while doctors have gained more time to devote to patient care. BlueMTech was established in 2015 with the goal of digitally transforming pharmaceutical distribution. By applying the convenience of e-commerce to pharmaceutical purchasing, it has attracted investments totaling 22 billion KRW and aims to be listed on KOSDAQ next year.
Jung Byung-chan, CEO of BlueMTech (pictured), is a marketing and sales expert with over 20 years of experience in the pharmaceutical industry. He joined the company last year at the recommendation of Chairman Yeon Je-ryang, the founder of BlueMTech. Jung was recruited because the company needed talent who thoroughly understands the complex pharmaceutical regulations and the dynamics of pharmaceutical companies. The platform operated by BlueMTech, ‘BluePharm Korea,’ handles about 50,000 types of products including pharmaceuticals, quasi-drugs, and consumables, and has 25,000 registered doctor members. Among them, 95% are heads of private clinics, securing membership from over 65% of all clinics nationwide. Jung said, “We mainly handle in-hospital medicines that cannot be purchased at pharmacies,” adding, “With active sales of various vaccines such as flu, shingles, and tetanus, we expect sales of 90 billion KRW this year.” Next year, they plan to expand their product range to include fillers and Botox, targeting the cosmetic surgery market.
BlueMTech opened a new chapter in its business by signing a business agreement with SK Bioscience during the COVID-19 outbreak in 2020. As a result, 10,000 hospitals and clinics that trade with SK Bioscience began using BlueMTech’s pharmaceutical distribution system. With explosive growth in orders for its main product, the flu vaccine, BlueMTech was selected for the Ministry of SMEs and Startups’ ‘Baby Unicorn Nurturing Project 200’ and successfully secured Series B investment of 18 billion KRW.
Pharmaceutical-exclusive logistics center under construction in Pyeongtaek, Gyeonggi [Photo by Blue M Tech]
By using BluePharm Korea, doctors can break away from the traditional practice of bulk purchasing from pharmaceutical sales representatives and buy the desired quantity, receiving it the next day. The platform analyzes purchasing patterns and data to automatically recommend medicines and also shows what medicines colleagues are buying. During doctors’ one-hour lunch breaks, live commerce sessions are held to sell medicines at discounted prices. Sales data is transmitted to pharmaceutical companies in real time. This is a differentiated service that combines IT with pharmaceutical distribution.
To respond to the stringent regulations on refrigerated pharmaceutical distribution, BlueMTech is constructing a logistics center in Pyeongtaek, Gyeonggi Province, with a total floor area of 10,000 pyeong (approximately 33,000 square meters), aiming for completion in the first half of next year. Equipped with a cold chain system that manages the temperature of refrigerated medicines from shipment to delivery, the center will provide fulfillment services to pharmaceutical companies. Additionally, well-known brands such as Samsung and LG are being introduced on the BluePharm Korea platform to allow doctors to purchase necessary supplies for their work. CEO Jung expressed his ambition, saying, “BlueMTech’s logistics center will develop into a hub for advanced pharmaceutical distribution. We want to become the Amazon or Coupang for doctors in Korea.”
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