A large number of drugs will be reduced in price!

Recently, many places across the country, including Liaoning Province and Jiangsu Province, have issued a large number of relevant notices on drug price reductions, including news that some commonly used drugs such as Liuwei Dihuang Pill will be reduced in price
.
For example, on February 11, Liaoning Province's centralized procurement network for medicines and medical consumables issued a notice that 33 pharmaceutical products were voluntarily reduced in price in Liaoning Province
.
According to the drug price adjustment list, including Liuwei Dihuang Pills, Fuzi Lizhong Pills, and Zhibai Dihuang Pills, the current online price is 12.
5 yuan, and the adjusted price is 12 yuan
.
Subsequently, on February 18, the Liaoning Provincial Public Resource Trading Center issued a notice to voluntarily reduce the price of 27 pharmaceutical products in Liaoning Province, including Huanglian Shangqing Tablets, Yinhuang Granules, Vitamin D Drops and other drugs
.
On February 7, the Jiangsu Provincial Public Resource Trading Center issued a notice that the supply prices of 34 drugs produced by 28 pharmaceutical companies will be adjusted, including ceftriaxone sodium for injection from Chengdu Yuandong and methanesulfonic acid from Nanjing Chia Tai Tianqing.
Lenvatinib capsules, Qilu Pharmaceutical's brimonidine tartrate eye drops, Nanjing Yiheng's glipizide controlled-release tablets and other commonly used clinical varieties
.
In terms of price cuts, some products have been cut by more than half.
For example, CSPC Ouyi's bortezomib for injection dropped by as much as 75.
17%, and Jiangsu Enhua's duloxetine hydrochloride enteric-coated capsules dropped by 59.
1%
.
In addition to the price reduction of drugs in medical institutions, drugs in many pharmacies will also usher in price reductions
.
For example, on February 25, Ningxia issued the "Notice on Announcement of Price Adjustment of Some Drugs", and a total of 19 varieties of drugs were reduced in price, including aspirin enteric-coated tablets, Shenshuining capsules and other commonly sold drugs in pharmacies
.
At present, although most drug price reductions mainly occur in the channel of medical institutions, with the normalization of centralized procurement, it is expected that drug price reductions in pharmacies may also become a major trend
.
The "14th Five-Year Plan for National Medical Insurance" proposes that by 2025, more than 500 varieties of national and provincial drugs should be purchased in a centralized manner in each province.
, which is 70% of the five-year plan
.
This also means that by the end of 2022, each province in the country will add an average of 116 new varieties of centralized drugs
.
For pharmacies across the country, a large number of drugs will usher in a wave of price cuts in the future
.
At present, many places including Henan, Shanghai, Zhejiang, etc.
have successively included pharmacies into the scope of centralized procurement in the province, and a batch of drugs with reduced prices will enter pharmacies in the future
.
In this context, some analysts believe that the pharmacy market is affected by price cuts, and the operating pressure of related companies may increase
.
However, some people in the industry believe that the centralized purchase of price-reduced drugs into pharmacies will help pharmacies bring traffic and drive sales growth
.
In October 2021, after Zibo City, Shandong launched the "Nationally-sourced Drugs into Pharmacies", the average passenger flow of pharmacies in the city increased by more than 20%, and the average sales volume exceeded 40%
.
There are also medical practitioners who believe that centralized procurement is more beneficial to the pharmacy chain industry, because pharmaceutical companies that have not entered the centralized procurement will be more inclined to choose to cooperate with pharmacies, and pharmacies and even pharmaceutical companies will bring higher gross profit margins
.
For example, AstraZeneca's lipid-lowering drug "Rosuvastatin Calcium" chose the retail channel of pharmacies after it did not enter the centralized procurement.
The data shows that in Q1 2020, the sales of AstraZeneca's rosuvastatin calcium in the pharmacy market reached 410 million yuan, an increase of nearly 70% over the same period last year
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.