Announcement of the latest collection documents for 76 major varieties of Chinese patent medicines

The 19 provinces led by Hubei Province for the centralized procurement of Chinese patent medicines, 17 groups and 76 large varieties have been released.

01Purchasing volume announced, bid opening countdown

On the evening of November 19, Hubei Proprietary Traditional Chinese Medicines issued the latest Announcement No.

With the closing of the reporting period, the agreed purchase amounts for the first year of each product will be announced accordingly

The announcement stipulates that the agreed purchase volume for each product in the first year will be determined by the cumulative total of 80% of the annual pre-purchasing volume reported by the alliance regional medical institutions participating in this centralized procurement

In this alliance area, the centralized procurement of Chinese patent medicines, the annual pre-purchasing volume and the first-year contracted procurement volume (unit: ten thousand tablets/ ten thousand tablets/ ten thousand bags/ ten thousand sticks/ ten thousand pills, etc.

Specifically, the combined reports of the 17 product groups across dosage forms range from several million to hundreds of millions.

The announcement requires that from November 19th to November 29th, relevant qualified pharmaceutical companies log on to the Hubei medical insurance service platform for Chinese patent medicine qualification companies to declare interface maintenance or fill in company and product information, benchmark prices, technical evaluation indicators and other information

According to the provisions of the centralized procurement documents, the process of this round of centralized procurement of proprietary Chinese medicines is as follows:

(1) The declared enterprise maintains enterprise and product information, benchmark prices, technical evaluation indicators, etc.

(2) The Alliance Procurement Office publicizes enterprise and product information, competition units, benchmark prices, technical evaluation indicators, etc.

(3) The Union Procurement Office publishes information on enterprises and their products, competition units, benchmark prices, technical evaluation indicators, etc.

(4) The applicant enterprise selects the supply list to generate a list of declared information;

(5) The application enterprise shall submit paper application materials on site

After November 29, with the completion of the relevant pharmaceutical companies’ declaration work, the centralized procurement of proprietary Chinese medicines led by Hubei will enter the bid opening stage step by step.

It is worth noting that the centralized procurement documents stipulate that enterprises that meet the application requirements must submit the application materials within the specified time.

02The benchmark price needs to be figured out

This round of centralized procurement of proprietary Chinese medicines led by Hubei is not only the first centralized procurement alliance for proprietary Chinese medicines, but also the procurement activities involving the most provinces at this stage.

According to the requirements of centralized procurement documents, the "supply list" of the applicant enterprise must include all products produced by the enterprise in the procurement catalogue that meet the qualification of the declared variety (specifically, the name of the drug, dosage form, specification, minimum packaging quantity, packaging material, pharmaceutical company, etc.

At the same time, the applicant enterprise must truthfully report the maximum production capacity of each product in the supply alliance area in the next year, and the production capacity of the products in the "supply list" cannot be "0"-this seems to reveal that the centralized procurement of Chinese patent medicines is particularly important for the company's supply capacity.

Although all product companies that meet the qualifications for the declared variety need to declare, in the price declaration link, the company only needs to take out the representative product for the quotation to declare
.

The quotation representative products mainly refer to the products of the same product group, the same company, and different dosage forms and specifications.
The medical institutions in the alliance region report the product with the largest purchase amount in 2020
.

Pharmaceutical companies participating in the centralized procurement of Chinese patent medicines in 19 provinces need to meet the benchmark price when they declare their prices, which is the lowest price or shortlisted price in the popular sense
.

Specifically, the benchmark price is for the products in the "Supply List" of the declared enterprise as of the release date of the "Announcement of Centralized Procurement of Chinese Patent Medicine Interprovincial Alliance (No.
1)" (September 25, 2021), on the national provincial procurement platform The lowest bid-winning / online price (excluding the online price of the Guangdong procurement platform, and the selected prices of centralized drug purchases in various provinces, the same below)
.

If the corresponding product does not have a winning bid/online price on all provincial procurement platforms across the country, all quotation representative products in the same competition unit will be calculated based on the average daily treatment cost (calculated according to the usage and dosage stated in the manual, regardless of the difference in dosage form specifications.
, The same below) The lowest converted price is used as the base price
.

At the same time, injectable products of the same company, same drug name, same specification, and different packaging quantities are converted to the smallest preparation unit (single bottle, single bottle) price at the lowest bid-winning/net-listed price of the national provincial procurement platform, and the lowest price Converted to the base price of the product with the corresponding packaging quantity
.

03Comprehensive score determines admission

According to Cyber ​​Blue, the time when Hubei issued the No.
1 document of the Central Procurement Announcement of the Chinese Patent Medicine Alliance was September 25.
In less than two months, the No.
2 document once again released more information on this round of centralized procurement
.

Grouping enterprises, adopting double-envelope competition, shortlisting requirements and quotation benchmarks are still the rules that need to be paid attention to in this round of centralized procurement in 19 provinces such as Hubei
.

A/B grouping

The bulk purchase of Chinese patent medicines is divided into two competition units, A and B, in the same product group, which compete separately
.
Declaring companies that meet one of the following conditions enter the A competition unit, and the others enter the B competition unit:

1.
With the declaring company as a unit, the 2020 purchase amount of all products reported by the medical institutions in the alliance area of ​​the same product group will be merged, and the amount of the declaring company that accounts for 10% or more of the total value of the same product group
.

2.
With the applying company as a unit, merge the 2020 purchase amounts of all products reported by the medical institutions in the alliance area of ​​the same product group, and sort the amounts from high to low, ranking the top 3 applicants
.

3.
If there are less than 3 declared companies entering the B competition unit, all the declared companies in the same product group will be merged into the A competition unit
.

Simple to understand, the original large market share into the A group, the other into the group B
.

Double envelope competition

In the quotation stage, pharmaceutical companies first need to meet the benchmark price, and at the same time, they will be selected based on the comprehensive scores of the representative products of the quotation and the recognition of medical institutions, corporate rankings, supply capabilities, innovation capabilities, recruitment credit rating, drug quality and safety, etc.
Business
.

The decline can be understood as the price competition score, and the remaining factors are technical scores, of which the former accounted for 60% and the latter accounted for 40%
.

In terms of price competition scores, specifically, the greater the price reduction of pharmaceutical companies in the same group, the higher the score.
It is expected that this rule will benefit companies with higher market prices, which can exchange price space for more reductions
.

Technical scores are mainly divided into five major areas: medical institution recognition (60 points), enterprise ranking and supply capability (20 points), innovation capability (20 points), recruitment and procurement credit rating, and drug quality and safety.
The last two items are not scored and only deducted.
Points
.

Generally speaking, at this stage, large pharmaceutical companies and well-known pharmaceutical companies are still enjoying benefits
.

Fortunately, due to the relatively affluent number of finalists, pharmaceutical companies have a relatively high chance of being shortlisted in Hubei's centralized procurement.
Basically, at least half of the pharmaceutical companies can be shortlisted
.

04 Decline is finalized whether to be selected

Specifically, the selection rules for this round of centralized procurement are as follows:

All the companies in the competition unit A of the 17 product groups will be ranked from highest to lowest, and the top 70% of the companies will be directly eligible for the proposed selection; if the bottom declines are the same, they will also be eligible for the selection
.

The lower 30% of the companies in the ranking of the decline will enter the bargaining process and accept the median decline of the finalists in all A competition units of the 17 product groups (50% of the ranking decline, the same below), and obtain the qualification for the proposed selection
.

In the B competition unit, if the number of shortlisted companies is more than 4, the shortlisted companies will directly obtain the qualifications to be selected
.
If the number of shortlisted companies is less than or equal to 4, the price drop of the shortlisted companies will reach the lowest drop of the top 70% of the top 70% of the top-ranked companies in the A competition unit of the 17 product groups, and they will be eligible for selection;

If it does not reach the price, enter the negotiation link, accept the median reduction of the finalists of all A competition units of the 17 product groups, and obtain the qualification for the proposed selection
.

On the whole, Group A companies with a large market share are facing greater pressure to cut prices
.

It can be seen that the overall score mainly determines whether a company is shortlisted, and the competition after the shortlist still mainly depends on the decline of real swords-that is, whether the company is selected in the end is mainly determined by the decline
.

In addition, this centralized procurement can also add companies to be selected
.
After determining the company to be selected according to the above rules, the applicant company that is not shortlisted or not selected, whose representative product is the lowest average daily treatment cost in the same product group, and has no demerit points in the technical evaluation index, can be eligible for the selection
.
If the average daily treatment cost of the quotation representative product is the same, the one with the higher comprehensive score will be eligible to be selected
.

In the face of few supplementary opportunities, only the pharmaceutical companies with the lowest product prices and the highest comprehensive scores can be favored
.

After the quotation surfaced, the centralized procurement document of the Hubei 19 Provincial Alliance also innovatively proposed the reduction of spillover and product regulation price correction
.

The so-called drop spillover means that other products in the "supply list" of the proposed pharmaceutical company need to lower the price proportionally according to the decline of the representative product of the quotation, forming the proposed price of the non-quotation representative product.
The specific calculation formula is as follows:

As for the price correction, the price of small specifications is higher than the price of large specifications for products of the same product group, the same drug name, and different specifications listed in the "Supply List" of the same company.
Experts need to be organized to formulate the selected price.
Carry out price correction
.
For those who do not accept price correction, the eligibility for the relevant products to be selected may be cancelled
.

According to Cyberlan, there have been feedbacks from industry insiders that the price of some medicines is higher than the big ones.
This regulation in Hubei this time may help alleviate the above-mentioned problems
.

Finally, let's look at the distribution of purchases, which is still beneficial to companies with large declines
.

If the product for which a medical institution reports purchase requirements is in the selected range, the selected product in the same competition unit with the highest decline (calculated by the reduction in the shortlisted quotation, the same below) is allocated to the corresponding medical institution according to the agreed purchase volume; other selected products are based on 90% agreement The purchase amount is allocated to the corresponding medical institution
.

Pharmaceutical institutions fill in the procurement requirements but are not in the selected range, have not declared by the enterprise, and fill in the agreed procurement volume of products with a production capacity of "0", and the agreed procurement volume of the selected products that has not been allocated as the amount to be allocated, which will be allocated by the pharmaceutical institution in the following order:

1 30% of the amount to be allocated is allocated to the selected company with the highest decline in the same product group; 2 The remaining 70% of the amount to be allocated is independently selected by the medical institution from all the products of the selected enterprise
.

In order to ensure supply, when the selected amount of medical institutions exceeds 80% of the maximum production capacity of each selected product, medical institutions will no longer be open to select the product, and medical institutions can continue to select other selected products
.

Whether it is from the selection criteria, the selection criteria, or the distribution rules of the quantity, it can be seen that the decline is the most important factor among all the factors that affect whether the relevant Chinese patent medicine companies can gain the market of the 19 provinces
.