Centralized procurement of Chinese patent medicines is raging, and the industry: a wave of price cuts is inevitable

At present, the country has not yet started the centralized procurement of Chinese patent medicines.
However, the recent developments of the 19-province alliance led by Hubei Province on the centralized procurement of Chinese patent medicines have attracted the attention of the industry.
On December 2, the Hubei Province Pharmaceutical Price and Bidding Procurement Management Service Network released The Chinese Patent Medicine Alliance Centralized Procurement of Related Data and Information," announced the benchmark prices of relevant Chinese patent medicines, and the publication date is December 8, 2021
.
Judging from the report of the procurement of Chinese patent medicines in this centralized procurement, there are more than 70 varieties involved, the number is very large, and the varieties of Chinese patent medicines involved are all varieties with large clinical usage and high purchase amount; from the perspective of the number of administrative regions, More than half of the country
.
The industry generally believes that the concentration of proprietary Chinese medicines is coming so aggressively that a wave of price cuts is inevitable
.
It is expected that the decline in the centralized procurement of Chinese patent medicines may be based on Western medicine, which is about 50%.
Some manufacturers' products may reach a 70% price reduction
.
It is difficult to evaluate the consistency of quality of proprietary Chinese medicines, so it is relatively more feasible to carry out procurement in provinces and alliances
.
Prior to the Hubei Union, Guangdong Union, Qinghai Province, Zhejiang Jinhua, Henan Puyang, etc.
have carried out centralized procurement exploration for some Chinese patent medicines that are in high demand and high in value
.
Among them, in September of this year, the "Guangdong Union Qingkailing and other 58 drug group procurement documents (draft for comments)" was released.
It is planned to carry out the procurement work of 58 drug alliance regions and groups including Qingkailing.
The alliance areas include Guangdong , Shanxi, Henan, Hainan, Ningxia, Qinghai, Xinjiang
.
As more local pilot projects for centralized procurement of Chinese patent medicines are carried out, it means that the 300 billion Chinese patent medicine market will enter the "shuffle" stage
.
In this context, some proprietary Chinese medicine companies have also clearly felt the pressure to cut prices
.
For example, the Investor Relations Activity Record Form issued by China Resources Sanjiu not long ago shows that Guangdong’s centralized Chinese medicine procurement policy takes into account the basis of hospital use of medicines and is relatively reasonable in terms of product grouping.
It is expected that prices will fall after centralized procurement
.
The company also stated that it will continue to pay attention to the reported volume of participating provinces and cities in the future, and make corresponding countermeasures.
At present, the company has done sufficient research and evaluation to analyze the status of different varieties and sales channels.

.
On the whole, there will be a certain degree of price reduction after the centralized procurement of Chinese patent medicines.
The company will determine the specific product strategy based on the reported volume and the proportion of existing varieties of different channels
.
The recent sharp drop in the stock price of Fusen Pharmaceutical has also attracted the attention of the industry.
As of the close of December 7, the stock had fallen 29.
35% to 1.
42 Hong Kong dollars, with a turnover of 30.
87 million Hong Kong dollars
.
The analysis believes that the plummet of Fusen Pharmaceutical may be related to the centralized procurement of Chinese patent medicines led by Hubei Province.
It is reported that the benchmark price of 10ml*10 Shuanghuanglian oral liquid reported by Fusen Pharmaceutical is 12.
6 yuan.
, Facing greater pressure to cut prices
.
Regarding the impact of centralized procurement of Chinese patent medicines, in addition to the inevitable price cuts and market reshuffles, the industry believes that the purpose of the Hubei Alliance’s centralized procurement of Chinese patent medicines is to reduce medical insurance costs and promote the rational use of Chinese patent medicines
.
"It is expected that the centralized procurement of Chinese patent medicines will have a certain impact on the next step of national procurement.
For example, it will have certain reference significance for the entry of chemical drugs that have not passed the consistency evaluation into the centralized procurement
.
"