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A new round of large-scale procurement of consumables! Can the "foreign monopoly" of Johnson & Johnson, Abbott and Medtronic be broken?

 Last Update: 2022-10-19
 Source: Internet
 Author: User

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Fujian Provincial Joint Procurement Center of Pharmaceuticals and Devices recently issued two documents: "Announcement on the Centralized Procurement of Inter-provincial Alliance for Cardiac Interventional Electrophysiology Medical Consumables (No.
1)" and "Announcement on the Centralized Procurement of Laparoscopic Inter-provincial Alliance for Medical Consumables for Cutting Kiss/Suture (No.
1)", which is a new round of large-scale centralized procurement of medical consumables officially opened
after the National Medical Insurance Bureau made unified deployment and coordination of local alliance centralized procurement.

According to the announcement, this round of electrophysiological consumables collection is led by Fujian Province, and Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Zhejiang, Anhui, Jiangxi, Shandong, Henan, Hunan, Guangdong, Guangxi, Hainan, Chongqing, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Xinjiang Production and Construction Corps and other 27 provinces (autonomous regions and municipalities) jointly formed a procurement alliance
.

Because the laparoscopic stapler has been collected in
many places across the country.
In the fourth round of procurement of medical consumables alliance in Jiangsu Province, the linear stapler of more than 2,000 yuan was reduced to more than 100 yuan, and the hemorrhoid stapler of 45,000 yuan was reduced to 2300 yuan, which was highly concerned
by the market.

In contrast, electrophysiology consumables are included in the provincial procurement list
for the first time.
Judging from the participation of the provinces of this procurement alliance, although it is not titled "national procurement", from the perspective of scope and impact, it is not an exaggeration
to call it "small national procurement".

Not long ago, the collection of spinal consumables that had just landed made the domestic stock market "unusual"
.
According to statistics, since the results of centralized procurement were released, as of today's close of 10 trading days, Dabo Medical led the orthopedic sector with 7 up 7 boards, up 78.
69
%.

The collection of spinal consumables has stirred the market and refreshed the public's perception
of centralized procurement.
The industry view is that the market's view of collective procurement is changing from pessimistic to optimistic, and this change is not difficult to understand
.
"It can be seen from the results that overseas enterprises in the centralized procurement of medical equipment consumables no longer occupy an advantage, and 'import substitution' is increasing its proportion; more and more domestic equipment companies are joining the electrophysiological track, some enterprises continue to break through core technologies, and large-scale collective procurement is launched.
.
.
Various phenomena still give relatively optimistic expectations, the domestic equipment market is expected to accelerate the transformation of development mode and promote independent innovation, breaking the import monopoly
.
”

This time Fujian issued a document, whether the electrophysiological collective procurement participated in by 27 provinces has made waves again, and can it once again refresh the market's view of centralized procurement? How will the market landscape change?

01.
The price is no longer only low but take

7% off for sets, 5% off for a single piece

Compared with the previous coronal stent collection and spinal consumables collection, electrophysiological collection can be described as a new face
.

In May this year, Fujian issued the Notice on Carrying out Information Collection of Medical Consumables Products for Cardiac Interventional Electrophysiology and Laparoscopic Staplers; On October 14, the formal plan landed, and the hospital reporting link has not yet been carried out, which immediately aroused hot attention
in the industry.

It is understood that because electrophysiological surgery is very complex and cumbersome to operate, different equipment and consumables are required for different disease treatment stages; In addition, unlike orthopedic surgery, which is relatively fixed in kits, electrophysiology requires different combinations
of surgical kits for different diseases.
Because of this, the procurement varieties and methods of electrophysiological collective procurement are the most concerned parts of
this time.

The electrophysiological centralized procurement led by Fujian participated in up to 27 provinces (cities and districts), and the scale ranked in the forefront of the domestic collective procurement alliance
.
The specific procurement mode is divided into set procurement mode, single piece procurement mode and supporting procurement mode
.

It is worth noting that the two types of group procurement mode and single piece procurement mode clarify the specific selection rules and set the "guaranteed price":

Under the purchase of sets, based on the maximum price, the sets in the same group with a reduction of ≥ 30% will be eligible
for selection.
In other words, a 7% discount can guarantee the selection
.

Under the purchase price of a single piece, based on the maximum limit price, the reduction rate of ≥50% in the same group can be qualified
.
In other words, a 5% discount can guarantee the selection
.

In the collection of spinal consumables that landed on the 27th of last month, a "guaranteed price" was also set: if the declared price in the same product system category ≤ 40% of the maximum effective declaration price of the product system category, the enterprise was qualified
to be selected.

In the final result, calculated according to the highest effective declaration price, the average reduction rate of spinal centralized procurement is 61%, and the difference among the 14 product system categories is not much, basically maintaining about
60%-70%.

Obviously, the positive sentiment of "price for quantity" brought about by "collective procurement" is being released
.
Spinal consumables centralized procurement set a "guaranteed price", a change in the domestic market's attitude towards centralized procurement, the domestic medical equipment field stock market has also set off waves, Dabo medical and other orthopedic sectors have risen all the way, so far there is no stopping momentum
.

The market believes that whether from the perspective of the capital market or the perspective of the enterprise itself, with the continuous in-depth understanding of volume procurement, whether it is national or provincial centralized procurement, everyone has begun to gradually change
to an optimistic and acceptable direction due to the pessimistic attitude of the past.

Compared with the two, the precedent of "guaranteed price" for the collection of spinal consumables is ahead, and this gentle move makes everyone full of expectations
for this electrophysiological centralized procurement.

In addition, this document also publishes very detailed rules for the allocation of surpluses
.
According to different reduction rates, the ratio of base amount and transfer amount is clearly corresponded:

Set procurement model

One-piece procurement model

In fact, unlike the initial bold bargaining model, with the gradual stabilization of the procurement model, the improvement of collective procurement rules, the gradual clarity of procurement procedures and prices, and now it has entered a deeper and more detailed exploration, which will bring new changes
to market expectations.

The National Health Insurance Bureau has repeatedly emphasized that procurement with quantity is not only about low prices
.
In the eyes of the industry, after several years of practical exploration, the extrusion of price moisture is still an important purpose of quantitative procurement, but at the same time, it is necessary to solve the supply security risks caused by price reductions, including stable supply and drug quality
.

The reasonable quotation of many selected enterprises and enterprises that "not only take low prices" has also gradually been normalized and institutionalized, and reasonable bidding and independent competition have become the "main theme"
of collective procurement.
It is reported that the electrophysiological centralized procurement enterprise needs to declare
from October 17 to October 23, 2022.
With the gradual landing of electrophysiological centralized procurement results, what changes will be brought to the domestic market?

02, domestic production ushered in "corner overtaking"

Can Johnson & Johnson, Abbott and Medtronic be "calm"?

Import substitution has always been a hot topic
in the field of domestic medical devices.

In recent years, the relevant support policies of the national medical device industry have been introduced, actively promoting import substitution in the medical device industry, reducing the entry barriers of high-quality domestic products by encouraging priority procurement of domestic equipment and purchasing with quantity, and supporting domestic enterprises to become bigger and stronger
in a targeted manner.

The cardiac electrophysiology market is one of
the few segments that has not yet achieved domestic substitution.
The market expects that the price reduction of the Fujian inter-provincial alliance tends to be moderate, and the impact on the market pattern of electrophysiological device import brands may not be large
.

According to Frost & Sullivan data, the market size of cardiac electrophysiology devices in China will be 5.
15 billion yuan in 2020, with a compound growth rate of 28.
3% from 2015 to 2020, according to which it is predicted that with the increase in penetration, it is expected to reach 21.
11 billion yuan
by 2024.

In the domestic cardiac electrophysiology market, three foreign-funded companies dominated by Johnson & Johnson, Abbott and Medtronic for a long time, accounting for more than 85% of the share, and the market share of domestic enterprises was less than 10%.

The highest proportion in China is Huitai Medical, but the market share is only 3.
1%; Minimally invasive electrophysiology and other players, the position is more marginal
.

From 2015 to 2019, the share of domestic production continued to decline from 11.
6% to 9.
0%, until less than 1% of the share rebounded
in 2020.

Collective procurement is undoubtedly the best opportunity
for "corner overtaking" to achieve localized substitution in subdivisions.

The electrophysiological products that Fujian intends to include in centralized procurement this time are basically general-purpose consumables, with a high degree of localization and strong
substitution.
Domestic electrophysiology enterprises such as Huitai Medical, Minimally Invasive Electrophysiology, Ruidao Medical, Jin Jiang Electronics and other enterprises have made breakthroughs in some key technologies and realized the localization of some products, such as ordinary mapping catheters and radio frequency ablation fields that can achieve import substitution
.

According to market analysis, the greater challenge for domestic enterprises is undoubtedly the lack
of core modules or conduits.
The field of cryoablation and pulse ablation technology is catching up, the high-density mapping catheter technology is not yet mature, and the three-dimensional mapping technology has made a certain breakthrough, but the market share is still not high
.

The optimistic side is that although the mainstream of the market is still dominated by imports, the centralized procurement of mature products in the field of cardiac electrophysiology may also accelerate the application of new technologies, and the living space of domestic brands is expected to be further expanded
.

At present, domestic enterprises participating in the electrophysiology track include MicroPort Medical, Lepu Medical, US-China Shuanghe, Beijing Xianruida, Xinop, Weixin Medical, Huitai Medical, etc.
, and some enterprises have made breakthroughs
in core technologies and other "neck" links through continuous R&D and innovation.

Obviously, in the era of comprehensively promoting the import substitution of the medical device industry, this alliance of two major categories of medical consumables whose scope is comparable to "national procurement" is of great significance
.

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