The pharmaceutical distribution industry has been impacted by the relevant policies since 2017，but overall it has maintained stable growth. Leading companies in the pharmaceutical distribution industry have continuously increased their market share by leveraging favorable policies. The retail side of the pharmaceutical industry shows a trend of increasing concentration reaching，and domestic pharmacy chain ratio has reached 55.34% by 2019 using capital investment market. Future business development will rely on seeking new business opportunities which have less policy resistance. The author believes that there are three main directions for future business development：first，rapid increase in terminal coverage density leveraging the centralized procurement policy；second，vigorously develop the distribution of high-margin products，such as imported innovative drugs，vaccines，high-value consumables，and in vitro diagnostic reagents；third，embrace the opportunities from the Internet，integrate online and offline business，and establish to B business（Internet hospitals，physical hospitals）and to C business through online sales model. From the perspective of the secondary market investment，the pessimistic expectations towards the pharmaceutical distribution sector market have been mostly released；horizontal and vertical valuation comparisons have been at historical lows，and thus there is a limited room for further decline. The author believes long-term investors will consider more of the A-share listed pharmaceutical distribution companies because of high cost-effectiveness.