19 provinces opened the curtain on the centralized procurement of Chinese patent medicines, and how would it affect?

On September 25, the Hubei Province Pharmaceutical Price and Bidding Purchasing Management Service Network issued the "Announcement of the Centralized Procurement of Proprietary Chinese Patent Medicines (No.
1)", which means that the centralized procurement of Chinese patent medicines is about to begin
.
According to the announcement, this inter-provincial alliance for centralized procurement of Chinese patent medicine involves 19 places including Hubei, Hebei, and Shanxi
.
In principle, the procurement cycle for the centralized procurement of Chinese patent medicines is 2 years, and it will be calculated from the actual implementation date of the selection results
.
It is understood that the Chinese patent medicines collected this time include 76 medicines in 17 product groups including Xueshuantong, Bailing, Danshen, Shuanghuanglian, etc.
, which belong to the Chinese patent medicines produced by many enterprises with large clinical use, high purchase amount, and so on.
It mainly involves diseases such as cardiovascular, urinary system and so on
.
The procurement entities include all public medical institutions in the alliance area, and the designated social medical institutions and designated pharmacies of medical insurance are encouraged to participate in accordance with the relevant regulations of the alliance area
.
The industry generally pays great attention to the possible impact of centralized procurement of Chinese patent medicines
.
It is understood that this time the Chinese patent medicine involves a number of listed companies, including those companies that have a large amount of clinical use in this centralized procurement, including Longjin Pharmaceutical, Tailong Pharmaceutical, and Wanbangde.
Will these Chinese patent medicine companies be affected? What about the greater impact? Western Securities analysts believe that compared with the previous chemical drug purchases, the centralized procurement of Chinese patent medicines will bring relatively less shock to the industry.
It is expected that the price reduction will be 20%-30%, which will affect the profitability of drug manufacturers.
Also relatively small
.
Essence Securities Research pointed out that the bulk purchase of Chinese patent medicines may cause short-term disturbances to market sentiment, but in the long run, centralized drug purchases are conducive to industry clearing and intensive development, and the market share of leading companies is expected to accelerate
.
CICC also stated that the influence of centralized procurement of proprietary Chinese medicines is mainly concentrated in the hospital channel, while the prices of products with brand advantages and OTC channel advantages will remain stable
.
In the long run, the introduction of centralized procurement of proprietary Chinese medicines will benefit leading companies with high-quality resources and is expected to promote further industry concentration
.
It is understood that companies related to proprietary Chinese medicines have also received attention from investors recently.
Regarding the impact of centralized procurement of proprietary Chinese medicines on the company, many companies replied that there is no impact or the impact is not obvious for the time being.

.
For example, Dong'e Ejiao stated on the investor interactive platform on September 27 that the centralized procurement of Chinese patent medicines has no effect on Ejiao slurry for the time being; on September 17th, Zhongxin Pharmaceutical said on the investor interactive platform that the company’s product, Dahuoluo Pills, is this time.
The alliance area group purchases varieties in quantity
.
At present, the centralized procurement of Chinese patent medicines has no obvious impact on the company
.
It is worth mentioning that this collection of proprietary Chinese medicines is not unexpected
.
As early as August this year, the National Medical Insurance Administration made it clear that it would start with high-priced and large-volume varieties and scientifically and steadily advance the reform of centralized procurement of Chinese patent medicines and formula granules
.
The industry has also said that the centralized procurement of Chinese patent medicines is only a matter of time.
Many Chinese patent medicine companies have made preparations for this
.
For example, Zuoli Pharmaceutical replied to investors on the interactive platform not long ago that it is the general trend to implement a centralized procurement policy, and the company will actively respond to policy changes
.
With the increasing development of psychosomatic medicine, doctors and patients can use Wuling capsules and other traditional Chinese medicines according to the needs of disease treatment.
The company expands its market share and serves more people through hospital development, department development, OTC and Internet e-commerce expansion.
, Increase the company’s main business income; Huluwa Pharmaceutical said before the collection of Chinese patent medicines that it would pay close attention to changes in related policies, and actively adapt to changes in policies and market environment; Baiyunshan also said that it is actively following the relevant policies before they are implemented.
Relevant policies for centralized procurement of finished medicines, and plans for related products in advance
.