Can the domestically produced replacement of insulin be realized?

Image source: Yaozhi Data

Insulin production and research details

Data source: Yaozhi data

Due to the mature technology of insulin and the highly transparent production cost, from the perspective of the special collection of insulin in Wuhan, it does not have much impact on the market occupied by enterprises, whether it is a domestic enterprise or a foreign enterprise
.
In 2020, Wuhan’s largest collection of insulin products has dropped by 43%.
Novo Nordisk has won the most bids, followed by Sanofi and Eli Lilly, which accounted for 68% of the market.
The overall market competition has not changed
.

The consensus reached at the previous centralized procurement forum showed that in order to solve the problem of insufficient supply after the previous centralized procurement exclusive or a small number of companies won the bid, many companies will be guaranteed to be shortlisted; and from the distribution rules of the procurement volume this time, due to the incremental part Medical institutions independently select the winning bidders for distribution, so they may be more inclined to continue their original clinical habits and choose imported brands
.
This may also prompt foreign brands to cut prices and win bids
.

However, the domestically produced second-generation insulin technology is mature, and the price is relatively low.
The quotation is expected to be relatively lower.
Foreign-funded companies may give up strategically.
Domestic substitution is possible.
However, there are few domestic companies involved in the third-generation insulin, and foreign companies are even more expensive.
High, it has a large base and can retain most of the market.
Domestically produced products may increase their market share by 10% to 20%, but they will not replace the share of foreign companies like generic drugs
.

2016-2020-Insulin and its homologues-Analysis of sales varieties (TOP10)

Image source: Yaozhi Data

To sum up, this centralized procurement is definitely bad news for insulin manufacturers, stimulating the price of the company’s products; thus causing market share adjustments and changes.
If its operating costs, including the scale of production, cause its prices to be too high , Or will directly "eliminate" and lose the original market, resulting in large-scale enterprise strong Hengqiang, big fish eat small fish, forming a barrier to insulin sales
.
However, on the other hand, it is also possible to promote the replacement of corporate insulin.
At present, there are many second-generation insulin manufacturers, price competition is also fierce, and profit margins are limited, prompting related companies to increase R&D and make innovation breakthroughs
.
In addition, insulin is the first shot in the procurement of biological drugs.
After insulin takes the lead, it will serve as a good reference for the subsequent formulation of standards for centralized procurement of biological drugs
.

Editor in charge: Sanqi