Centralized hanging network, inter-provincial joint procurement, centralized procurement of traditional Chinese medicine formula granules is approaching!

Since the beginning of this year, the pace of centralized procurement of traditional Chinese medicine formula granules has accelerated
.
The first joint procurement transaction of the National Inter-Provincial Traditional Chinese Medicine (Material) Procurement Alliance will be completed in the first quarter of this year, and more and more regions will also incorporate traditional Chinese medicine formula granules into the provincial procurement platform
.
With the launch of the seventh batch of national procurement, the coverage of volume procurement has become wider and wider
.
At present, chemical medicines, proprietary Chinese medicines, biological medicines, and medical devices have all achieved centralized procurement, while Chinese herbal medicines, Chinese herbal decoction pieces, and Chinese herbal formula granules are still "blank areas"
.
From the perspective of the industry, with the advancement of the unified standard of traditional Chinese medicine formula granules, centralized procurement will be the general trend
.
Online procurement may pave the way for centralized procurement.
At the end of 2021, the "Guiding Opinions on Medical Insurance Supporting the Inheritance, Innovation and Development of Traditional Chinese Medicine" issued by the National Medical Insurance Administration and the State Administration of Traditional Chinese Medicine clarifies that Chinese medicine formula granules purchased by public medical institutions are encouraged to be included at the provincial level.
The centralized pharmaceutical procurement platform is linked to online transactions to promote open and transparent transactions
.
Prior to this, some provinces and cities have already advanced
.
In 2020, a third-party electronic trading platform for Chinese herbal medicines in Guangdong Province was launched
.
In 2021, Shanghai Sunshine Purchasing Network issued the "Notice on Further Improving the Management of "Sunshine Purchasing" of TCM Decoction Pieces, and fully implement "Sunshine Purchasing" for TCM Decoction Pieces (including formula granules)
.
In January this year, the Fujian Provincial Joint Procurement Center for Pharmaceuticals and Equipment issued the "Notice on Issues Concerning the Online Application of Chinese Medicine Formula Granules", requiring the completion of listing sales records in Fujian Province, and cross-provincial sales records of traditional Chinese medicine formula granules that were originally sold on a pilot basis in the province.
The traditional Chinese medicine formula granules produced by enterprises of traditional Chinese medicine formula granules according to the original implementation standards before November 1, 2021 can be declared
.
The industry believes that after some provinces and cities carry out sunshine procurement of traditional Chinese medicine pieces and formula granules, they will pave the way for their inclusion in centralized procurement
.
Some regions also directly put forward practices: Anhui Province introduced several policies for medical security to actively support the development of traditional Chinese medicine, and explored the development of centralized procurement of traditional Chinese medicine (TCM formula granules); Joint mining started in Shandong
.
The alliance was initiated and established by Shandong Medical Insurance Bureau and 11 provinces (autonomous regions and municipalities) across the country.
The first batch of participating areas covered more than 9,500 medical institutions in 86 cities in 19 provinces.
The cumulative amount reported exceeded 10 billion yuan
.
This is also the first large-scale alliance procurement of Chinese herbal decoction pieces and Chinese herbal formula granules nationwide
.
Not long ago, a Shandong Province "Notice on Carrying out the Work of Combining Traditional Chinese Medicine (Materials) in Public Medical Institutions in the Province" from the industry showed that the work of combining Chinese herbal pieces, formula granules and proprietary Chinese medicines in public medical institutions in the province was carried out, including 180 kinds of Chinese patent medicines and 190 kinds of Chinese herbal medicines
.
Regarding the centralized procurement of traditional Chinese medicine formula granules, the National Medical Insurance Bureau made it clear in its reply to the No.
4126 proposal of the Fourth Session of the Thirteenth National People's Congress last year: the next step will be to work with relevant departments to improve the quality evaluation standards of Chinese patent medicines and formula granules.
Priority, guided by clinical needs, starting from high-priced and large-volume varieties, scientifically and prudently promote the reform of centralized procurement of Chinese patent medicines and formula granules
.
Today, the centralized procurement of proprietary Chinese medicines is rapidly landing
.
In November 2021, Hubei Medical Insurance Bureau issued centralized procurement documents from 19 provinces (autonomous regions and municipalities), and finally 111 products from 97 companies were selected, with an average price drop of 42.
27%
.
On December 24, 2021, the Guangdong Provincial Drug Trading Center issued a notice on the "Guangdong Alliance Qingkailing and other Chinese patent medicines centralized procurement documents", a total of 132 drugs were purchased in 6 provinces
.
Before Guangdong and Hubei respectively took the lead in establishing a centralized procurement alliance for proprietary Chinese medicines, Jinhua in Zhejiang, Qinghai, Puyang in Henan and other places had already carried out a pilot program for the procurement of proprietary Chinese medicines
.
The inter-provincial alliance of Chinese patent medicines led by Hubei Province is also the first centralized procurement covering the field of Chinese patent medicines under the guidance of the National Medical Insurance Bureau
.
In the future, centralized procurement may be expanded to more varieties such as Chinese herbal decoction pieces and Chinese herbal formula granules
.
The market is expected to usher in several times of growth space.
In recent years, the state has successively issued heavy policies to support the development of traditional Chinese medicine.

.
According to the "2020 Economic Operation Report of China's Pharmaceutical Industry", the market size of Chinese herbal decoction pieces processing will reach 178.
2 billion yuan in 2020
.
As an innovative product of TCM decoction pieces, TCM formula granules are gradually being recognized by the market, and the proportion of TCM decoction pieces in sales has increased year by year
.
In February 2021, four departments including the State Food and Drug Administration and the State Administration of Traditional Chinese Medicine issued an announcement to end the pilot work of traditional Chinese medicine formula granules
.
The national pilot management of traditional Chinese medicine formula granules will officially end, bringing new opportunities and challenges to the development of the formula granule market
.
On the one hand, the sales scope is expanded to all medical institutions that meet the relevant conditions, and the market of traditional Chinese medicine formula granules is expected to usher in several times of growth
.
On the other hand, it is no longer subject to license restrictions, which will attract more companies to enter the game
.
According to the data of Minet.
com, among the listed pharmaceutical companies, China Traditional Chinese Medicine, China Resources Sanjiu, Hongri Pharmaceutical, Xiangxue Pharmaceutical, Tailong Pharmaceutical and other companies are all involved in the R&D and production of Chinese herbal decoction pieces/Chinese herbal formula granules
.
In the first half of 2021, the revenue of Chinese herbal decoction pieces (including Chinese herbal formula granules, Chinese herbal medicine, etc.
) of China Traditional Chinese Medicine, Hongri Pharmaceutical, Tailong Pharmaceutical, and Shenwei Pharmaceutical was 6.
029 billion yuan, 1.
8 billion yuan, 333 million yuan, 320 million yuan
.
In 2020, the operating income of CR Sanjiu's traditional Chinese medicine formula granules exceeded 2 billion yuan
.
Guorong Securities pointed out that the substitution rate of traditional Chinese medicine granules in Japan and South Korea for decoction pieces is about 60%.
It is conservatively estimated that the substitution rate of formula granules in China will be about 50% in the future, and the corresponding market size is expected to exceed 150 billion yuan
.
Centralized procurement is the general trend to decrease or ease.
According to the industry, since proprietary Chinese medicines have been included in volume procurement, the profit margins of the entire proprietary medicines have been greatly reduced, and most of the traditional Chinese medicines are covered by medical insurance reimbursement, resulting in a large number of medicines that were originally used for clinical promotion The representative turned to high-end Chinese herbal decoction pieces and formula granules
.
It is obviously necessary to carry out centralized bidding procurement or bulk procurement for Chinese herbal decoction pieces and formula granules, which will promote the development of the entire industry.

.
As for the reasons for the lack of centralized procurement of TCM decoction pieces and formula granules, some people in the industry believe that it mainly comes from three aspects: first, the share of the TCM decoction pieces sector in the total drug purchase is too small; second, the standards for TCM decoction pieces are difficult to unify
.
On the one hand, the local standards are inconsistent, and the quality levels required by each province are different
.
On the other hand, the demands of terminal doctors are also various; thirdly, the prices of Chinese herbal decoction pieces are affected by the raw Chinese herbal medicines, and the prices are constantly changing
.
If the price cannot be stabilized, it is difficult for centralized procurement to achieve price linkage
.
Perhaps it is more realistic to start with your traditional Chinese medicine pieces and formula granules
.
From the perspective of the industry, the centralized procurement of Chinese herbal decoction pieces and formula granules most needs to solve two key problems
.
One is the issue of standards and underlying coding
.
Including the origin of the raw materials of Chinese herbal decoction pieces, whether it is authentic, and whether the processing method can adapt to local needs
.
Then, the underlying coding must be unified, and only after the coding is clear can it be traced and linked with the raw materials of the origin; the other is the issue of price linkage
.
For example, through the operation of a mature Chinese medicinal material market platform and price monitoring and monitoring platform, if the price of raw materials doubles, it may be necessary to adjust the price appropriately to ensure the supply, and the price adjustment application submitted by the supplier must also have a basis to ensure credibility
.
It is worth noting that there are a total of 196 TCM formula granule standards announced by the State Pharmacopoeia Commission in the first and second batches
.
With the advancement of the unified standard work, the centralized procurement of traditional Chinese medicine formula granules may be the general trend
.
Guosen Securities analysis believes that the centralized procurement of traditional Chinese medicine formula granules is expected to provide a platform for related enterprises to compete fairly in the sun, and the national centralized procurement is inevitable
.
Zheshang Securities believes that referring to the consistency evaluation of generic drugs is a major prerequisite for centralized procurement of chemical drugs, and the formulation of standards for traditional Chinese medicine granules is a prerequisite for centralized procurement; at the same time, in addition to limiting quality standards, the unification of equivalents is also a traditional Chinese medicine The premise of the national centralized procurement of formula granules
.
As of December 2021, only 196 varieties of standards have been publicized, and there are about 400 to 600 varieties of traditional Chinese medicine formula granules.
The comprehensive formulation of the standards needs to be implemented steadily.
Of course, some provinces and cities do not rule out varieties with large quantities and high prices.
Collect and explore first
.
In addition, unlike generic drugs, traditional Chinese medicine formula granules have upstream resource attributes.
Referring to the provincial centralized procurement of Chinese patent medicines, most products drop by about 30% to 50%.
Compared with chemical drugs, the decline in the centralized procurement of traditional Chinese medicine formula granules will also be Similar to Chinese patent medicine, it is relatively mild
.