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Pharmaceutical companies need to respond
early to the possible decline in product prices caused by the implementation of large-scale centralized procurement of proprietary Chinese medicines.
01 2810 proprietary Chinese medicines suspended from trading
01 2810 proprietary Chinese medicines suspended from trading Recently, the Hainan Public Resources Trading Service Center issued the Notice on the Suspension of Trading of Some Network-Linked Products (hereinafter referred to as the "Notice"), with a total of 10,757 drugs suspended from trading, involving more than 1,700 enterprises
.
.
According to Cyberblue's statistics, there are a total of 2,810 proprietary Chinese medicines among the 10,757 drugs suspended this time, including well-known varieties
such as Huoxiang Zhengqi Water, Banlan Root Granules, Liuwei Dihuang Pill, and Bezoar Detoxification Tablets.
such as Huoxiang Zhengqi Water, Banlan Root Granules, Liuwei Dihuang Pill, and Bezoar Detoxification Tablets.
(See end for the full list)
The 2,810 proprietary Chinese medicines suspended from trading involved a total of 786 enterprises, including some small and medium-sized manufacturers and a large number of well-known enterprises, such as Yunnan Baiyao, China Resources Sanjiu, Guangzhou Baiyunshan, Yiling Pharmaceutical, Jichuan Pharmaceutical, Buchang Pharmaceutical, etc
.
.
In addition to the suspension of trading in Hainan, Shandong, Liaoning and other places have also announced the suspension of proprietary Chinese medicines in the past two months
.
On October 20, the Shandong Public Resources Trading Platform issued the Notice on Adjusting the Information of Some Drugs on the Internet, and some drugs, including Tianjin Tongrentang Vascular Rehabilitation Tablets, were suspended from being listed on the Internet
.
On October 13, the Office of the Leading Group for the Centralized Procurement of Drugs and Medical Consumables for Medical Institutions in Liaoning Province suspended the online procurement
of Xiangdan injection because it received an application from Henan Tongyuan Pharmaceutical.
On August 19, the Guizhou Provincial Public Resources Trading Network announced the "Notice on Canceling the Qualifications of the Fourth Batch of 107 Drugs in 2022", and a number of proprietary Chinese medicines such as Shuanghuanglian oral liquid, snake gall chuan shell liquid, cold spirit capsules, and banlan root granules were canceled from the network
.
Judging from local documents, there are many reasons for pharmaceutical companies to cancel the hanging network, mainly including independent application by enterprises, according to the requirements of the National Medical Insurance Bureau, drug production suspension or repeated production
.
02 Reasons for suspending online trading
02 Reasons for suspending online trading According to Hainan's "Notice", the suspension of trading is a variety that has been on the network for one year but has no transaction record, if it is necessary to restore the trading qualification, it is necessary for second-level and above medical institutions to submit a demand application, and the transaction
can be resumed only after being reviewed and approved.
Shi Lichen, a well-known strategic marketing expert, told Cyberblue that there are many possibilities for drugs to be listed on the network for a year but without trading, for example, some provinces require pharmaceutical companies to provide the hanging network or winning bid price of all provinces in the country, and some pharmaceutical companies do not provide it, forming a situation
of only hanging the network but no price.
There are also price reasons, when the price of the hanging network is too high, it is difficult for medical institutions to negotiate the price, so they give up procurement; When the price of the hanging network is low, due to profit considerations, some pharmaceutical companies will choose not to sign purchase agreements with medical institutions and actively abandon the hospital market
.
For example, some traditional Chinese medicine varieties that are mainly marketed outside the hospital are reluctant to be sold
online at low prices.
Then there is the problem of enthusiasm, some medical institutions, if pharmaceutical companies do not focus on promotion, do not take the initiative to purchase new varieties
.
In addition, hospitals are reluctant to purchase
those types of traditional Chinese medicines that are being monitored.
A doctor from a third-class Chinese medicine hospital told Cyberblue that most proprietary Chinese medicines are not "unique" in clinical use, and there is a large
space for substitution.
Based on this, even if there is a large number of network withdrawals, it will not have a great impact
on hospitals.
of only hanging the network but no price.
When the price of the hanging network is too high, it is difficult for medical institutions to negotiate prices, so they give up procurement; When the price of the hanging network is low, due to profit considerations, some pharmaceutical companies will choose not to sign purchase agreements with medical institutions and actively abandon the hospital market
.
For example, some traditional Chinese medicine varieties that are mainly marketed outside the hospital are reluctant to be sold
online at low prices.
Some medical institutions, if pharmaceutical companies do not focus on promotion, do not take the initiative to purchase new varieties
.
In addition, hospitals are reluctant to purchase
those types of traditional Chinese medicines that are being monitored.
As regulation becomes stricter, there are fewer and fewer
sales with gold.
Under the premise of guaranteed efficacy, doctors often tend to choose more cost-effective drugs
.
In addition, the department of traditional Chinese medicine has a strong inheritance, there is "inertia of use" in the use of medicine, generally speaking, the commonly used Chinese proprietary medicines are so fixed, easily will not change, patients are not willing to accept brands they have not seen
.
Shi Lichen said that there are also some "force majeure" reasons, such as rising raw materials, raw material shortages, production line shutdown and so on
.
According to Minenet, on October 19, the Gansu Provincial Public Resources Exchange Center issued a notice saying that 45 drugs from 36 enterprises had recently submitted applications for withdrawal due to production line transformation, rising costs, raw material shortages, and production suspension, which could not guarantee the normal supply
of medical institutions in Gansu Province.
Among the 45 drugs that applied for scrapping, 40 drug platforms had the same variety and different specifications to ensure the supply of winning bids and hanging on the network; Five drugs are exclusive, and medical institutions are requested to use alternative drugs
with the same function.
Nine drugs were withdrawn due to the company's no longer producing them, including 4 proprietary Chinese medicines, including bear bile antipyretic tablets (exclusive variety), rheumatic bone pain capsules, xiongju supernatant tablets, and cold spirit capsules
.
.
Rising raw materials, raw material shortages, production line shutdowns, etc
.
Recently, 45 drugs from 36 enterprises submitted applications for withdrawal due to production line transformation, rising costs, raw material shortages, and production suspension, which could not guarantee the normal supply
of medical institutions in Gansu Province.
03 Proprietary Chinese medicine in the context of centralized procurement
03 Proprietary Chinese medicine in the context of centralized procurement In recent years, driven by policy and market demand, the collective procurement of proprietary Chinese medicines has been launched and continuously expanded, and some joint centralized procurement activities have also produced bidding results, and the price reduction is obvious
.
A practitioner of a Chinese medicine company told Cyberblue that according to experience, the winning price of drugs is generally low, but the cost of raw materials for traditional Chinese medicine has risen again and again in recent years, which has caused pressure
on drug companies.
on drug delivery companies in terms of profitability.
He believes that collective procurement can indeed drive sales, but in the current situation of low overall profits, if the price of raw materials rises again, high sales may even bring high losses
to enterprises.
Therefore, some enterprises choose to take the initiative to develop the out-of-hospital market to reduce the risk of
being "bargained".
Industry insiders said that in the future, China's proprietary Chinese medicines will face more severe challenges
of "survival of the fittest".
Centralized procurement provides an opportunity for some proprietary drugs to enter the hospital market, but this requires that the product itself has high competitiveness, and products that have no irreplaceable efficacy and are not cost-effective will soon lose their living space
.
It is understood that at present, some Chinese medicine enterprises have begun to lay out
in terms of innovation.
According to data from the Center for Drug Evaluation of the State Medical Products Administration, 27 new Chinese medicine drugs were approved and accepted in 2020, 62 new Chinese medicine drugs were approved and accepted in 2021, and 18 new Chinese medicine drugs were approved and accepted by the end of March
2022.
In the current environment, pharmaceutical companies need to respond early to the possible decline in product prices caused by the
implementation of large-scale centralized procurement of proprietary Chinese medicines.
to the company.
In the future, China's proprietary Chinese medicine will face a more severe challenge
of "survival of the fittest".
In 2020, 27 new Chinese medicine drugs were approved and accepted, 62 new Chinese medicine drugs were approved and accepted in 2021, and 18 new Chinese medicine drugs were approved and accepted by the end of March
2022.
