Further healthcare reform by China's State Council for pharmacies

China Jo-Jo Drugstores (Nasdaq AQ CM: CJJD), a leading China-based pharmacy with retail, wholesale and online distributor of pharmaceutical and health care products, says that healthcare reforms have been announced intended to consolidate, modernize and accelerate chain pharmacy growth in China.

A mandate of China's health insurance program requires pharmacies to have government reimbursement licensure in order to process authorized prescription reimbursements. This component of China's health insurance program has become a critical and growing revenue source for established pharmacies, especially in cities. In the third calendar quarter of 2015, the Chinese government decided to accelerate growth in domestic chain pharmacies for those participants who have historically demonstrated adherence to high standards of excellence.

As such, rules governing the inspection and qualifications process of newly acquired chain drugstore locations were rescinded. The rationale was that the inspection process formerly placed undue burden on chain drugstores in order to requalify newly-acquired storefronts for pharmacy certification. The former recertification process would shutter a newly acquired but operational pharmacy for more than a year, depending on the store location, while waiting for new licensure.