Abstract
The COVID-19 pandemic has driven a shift toward online medication purchases, prompting major pharmaceutical manufacturers to adopt a dual-channel strategy to enhance competitiveness. This paper examines model selection and pricing challenges for pharmaceutical manufacturers in China's OTC drug supply chain across different dual-channel models. Our findings indicate that: (1) medical insurance policies significantly enhance profits for pharmaceutical manufacturers and offline retailers; (2) an online direct-selling model yields the highest profit for manufacturers; and (3) increased consumer acceptance of online channels does not necessarily boost demand. Numerical analysis verifies these findings.