After Pfizer P drug medical insurance negotiation bid flow, the stock of domestic P drug processing enterprises should rise to the limit

On January 8, the negotiation of the 2022 national medical insurance drug list officially ended, and the National Medical Insurance Administration announced the participation of new crown treatment drugs in the negotiation of the 2022 medical insurance drug list, among the new crown treatment drugs, azvudine tablets and lung cleansing detoxification particles were successfully negotiated, and Paxlovid (known in the industry as P drug) was finally unsuccessful
due to Pfizer's high quotation in the 4-hour medical insurance negotiations.

The "floor price" of medical insurance is actually based on comprehensive
value.
Generally speaking, in the process of medical insurance negotiation, if the price confirmed by the enterprise is higher than 115% of the reserve price negotiated by the medical insurance party, the negotiation fails and is automatically terminated
.
In addition to considering the cost of the enterprise (raw material cost, research and development expenses, period expenses) and clinical value, pricing should also fully consider "innovation" and "economy"
.
Among them, economy is one of the important pricing principles, when the price of drugs is significantly higher than the results of economic evaluation, pricing needs to be subject to the results of economic evaluation
.
Hu Shanlian, a well-known health economics scholar and professor at the School of Public Health of Fudan University, told People's Daily Health Client reporter
.

Albert, CEO of Pfizer Bourla said that the price demanded by China at the time of the negotiations was lower than what Pfizer had for most low- and middle-income countries, but China is the world's second-largest economy and I don't think they should pay less than El Salvador
.
Both sides consider the problem from their own standpoint, because the sales of new crown drugs may be a hot selling variety in the short term, and the market demand is very large, but in view of the changes in the form of the epidemic, it may not be long-term, because some pharmaceutical companies still want to get higher benefits
in the short term.
What's more, there are no generic drugs in China, the drug has no direct competitors in the short term, if you want to use them, you have to buy them
.
It doesn't mean you don't
use it just because it's not covered.

After the negotiations failed, Medicare will still make provisional payments until March 31, 2023, which means that patients will have to pay
for Paxlovid out of pocket from April 1.

Although Paxlovid is expensive, it is not necessarily difficult to buy, and local production has been hammered
.

I don't know if the news is reliable or not, when the price was the highest, Paxlovid also had "one medicine is difficult to find", so all kinds of scalpers emerged, and the price of drugs even speculated to tens of thousands of yuan
.

The good news is that Paxlovid local production has accelerated
.
On January 10, the news that "Pfizer said it is working with Chinese partners" once again sparked heated discussions in the market
.
Albert Bourla (Pfizer's first executive) said at the J.
P.
Morgan Healthcare Conference in San Francisco that it is working with Chinese partners to prepare to provide the new crown oral drug Paxlovid
in China starting in the first half of this year.
The relevant person in charge of Pfizer China confirmed the above news
to the media.
What Albert Bourla mentioned was the localization production agreement signed earlier with Huahai Pharmaceutical, which is not a new thing (2022.
08 has signed a foundry agreement with Huahai).

At present, both of us are actively advancing
.
The person in charge said
.

Huahai Pharmaceutical and Pfizer signed the "Manufacturing and Supply Master Agreement", Huahai Pharmaceutical will provide preparation contract manufacturing services
for Pfizer's Paxlovid sold in the Chinese mainland market during the agreement period (5 years).
The specific cooperation content is that Pfizer provides nematevir API and ritonavir preparation, and Huahai Pharmaceutical is responsible for the production of nematevir preparation and completes the combination packaging
.

According to the above cooperation, Huahai Pharmaceutical produces Paxlovid original drugs, not generic drugs
.
A relevant person from Huahai Pharmaceutical said in an interview with the media: "At present, our company is cooperating with Pfizer to accelerate the work of Paxlovid localization production project to ensure the sufficient supply of Paxlovid in the Chinese market and continue to meet the new crown treatment needs
of Chinese patients.
" ”

Although Paxlovid was not included in the national medical insurance catalog, Pfizer said that it will continue to cooperate with the government and other relevant partners to ensure sufficient supply
of Paxlovid in the Chinese market.
The timeline given by the other party is to achieve local production
of the new crown oral drug Paxlovid through local partners in China within the next 3-4 months.

As soon as this news came out, Huahai Pharmaceutical's stock price rose yesterday, and on January 10, Huahai Pharmaceutical rose sharply intraday, once approaching the limit of increase, and rose 7.
73%
as of the closing of the day.
On the 11th, it rose more than 4%
again on the same day before going to press.

Source: Oriental Fortune Network

Source: Huahai Pharmaceutical Interactive Platform

It can be said that in terms of China's localized production and sales of Paxlovid, Huahai Pharmaceutical is the foundry of Pfizer and the foundry of the original drug, but it is not a copycat.

In the fight against the new crown epidemic, the use of new crown small molecule drugs can play a role
in reducing the incidence of severe disease.
Since the adjustment of China's epidemic prevention and control policies in December last year, the number of new crown infections has surged, resulting in a sharp increase in demand for Paxlovid, and a situation
of "one drug is difficult to find".

On January 6, the Chinese Health Commission released the "Diagnosis and Treatment Plan for Novel Coronavirus Infection (Trial Version 10)", which showed that Paxlovid is suitable for adult patients with mild and medium-sized patients with high-risk factors for progression to severe disease within 5 days of onset, once every 12 hours for 5 consecutive days
.

The issue of generic licensing originated in March last year with the Medicines Patent Pool, MPP).

At that time, MPP announced that it had signed agreements with 35 companies to authorize it to produce generic drugs of Pfizer's oral new crown treatment nematevir, including 5 Chinese pharmaceutical companies
.
Among the five Chinese pharmaceutical companies, four companies, Shanghai Disano, Huahai Pharmaceutical (600521.
SH), ProPharma (000739.
SZ), Fosun Pharma (600196.
SH, 02196.
HK), produce nematevir APIs and finished drugs, and Jiuzhou Pharmaceutical produces nematevir APIs
.

However, the five authorized Chinese pharmaceutical companies mainly supply 95 low- and middle-income countries, which together cover about 53% of the world's population
.
Therefore, China is not in the scope of
supply.
The MAH (Drug Marketing Authorization Holder) system is gradually implemented nationwide, which separates drug marketing authorization from drug production authorization, in fact, undertaking production orders of multinational pharmaceutical companies, has very strict requirements for the process research and development level, production and quality management level of local pharmaceutical companies, and the cooperation with Pfizer also shows the strength
of Huahai Pharmaceutical in the field of CMO/CDMO.
Pfizer has said that it relies on the resource advantages of both sides The localized production of Paxlovid by Huahai Pharmaceutical will help improve patient access
.