Centralized procurement of proprietary Chinese medicines: All these large varieties are reduced in price (list attached)

01 Announcement of the proposed price

On the evening of January 4, the Office of the Centralized Procurement Leading Group of the Inter-Provincial Alliance of Chinese Patent Medicines issued the "Announcement of the Benchmark Prices and Proposed Prices of Non-quoted Representative Products of Selected Enterprises in the Inter-Provincial Alliance of Chinese Patent Medicines in Centralized Volume-Based Purchasing

According to the document "Announcement on Centralized Procurement of Proprietary Medicines with Procurement (No.

The specific calculation formula is:

It is worth noting that the proposed representative products and non-quoted representative products will be selected as the products to be selected and participate in the allocation of procurement volume

This time, a total of 218 products with different packages are to be selected.

Taking Bailing, Zhiling and Jinshuibao as examples, Jinshuibao tablets (each tablet weighs 0.

According to the notice previously issued by the Office of the Centralized Procurement Leading Group of the Inter-Provincial Alliance of Chinese Patent Medicines, the results of the centralized procurement of Chinese patent medicines in 19 provinces in Hubei Province have been announced.

The announcement period is from January 5, 2022 to January 7, 2022; the acceptance period is from January 5, 2022 to January 7, 2022

02 Centralized procurement of proprietary Chinese medicines, cost is the key

When the results of the centralized procurement of Chinese patent medicines in 19 provinces in Hubei were announced, some readers left a message on the backstage of Cyberblue, "As soon as the price of Cordyceps increases, one hundred orders will cry.

Galaxy Securities analyzed in a research report that the cost of raw materials for proprietary Chinese medicines is affected by natural factors and market price fluctuations, and it is difficult to control

It is worth mentioning that there has been controversy in the industry regarding the results of the selection of Chinese patent medicines in Hubei

The centralized procurement of Chinese patent medicines in 19 provinces in Hubei regards the price reduction of medicines as one of the main principles for selection, which also leads to the phenomenon that the price gap between the selected varieties in the same group is large or the small size is more expensive than the large size

For example, in Danshen injection, the price of 2ml/vii of Langzhi Group Wanrong Pharmaceutical is 24.

The relevant person in charge of the Hubei Provincial Medical Insurance Bureau mentioned when answering a reporter's question about the centralized procurement of the Chinese patent medicine alliance, because the Chinese patent medicine has no consistent evaluation as a support, and the quality system is complex, a simple price competition method cannot be adopted

This centralized procurement creatively adopts the method of comprehensive scoring, and the comprehensive score of the declared enterprise is composed of the score of price competition and technical evaluation

Among them, the technical evaluation includes four evaluation criteria: quality evaluation, credit evaluation, enterprise production capacity supply capacity, and market coverage

It is precisely because of the introduction of more quality and efficacy factors, the connotation of the link between volume and price also reflects the multi-level nature, that is, the design of "guaranteed volume" and "incremental", the market share of the winning companies can be steadily increased, and the clinical use can be stable.

According to data from the Chinese herbal medicine information platform "Yaotong.
com", since 2020, the Chinese herbal medicine market index has risen by more than 30%, compared with an increase of about 10% in the previous three years
.
Specific to each type of medicinal material, the prices of more than 50 kinds of Chinese medicinal materials will double in 2021, among which white lentils will rise by more than 800%, and Rehmannia glutinosa and Eclipta will rise by more than 300%
.

Recently, there have been many well-known pharmaceutical companies raising the prices of Chinese patent medicines
.
For example, Tongrentang Angong Niuhuang Pills has increased from 780 yuan per box to 860 yuan per box.
Jiuzhitang also mentioned in response to institutional research that it is aimed at different products, comprehensively considering cost changes, policy conditions, product audiences and market conditions, etc.
, and adopt different pricing strategies in a timely manner
.

The pace of centralized procurement of proprietary Chinese medicines continues to advance, and Chinese herbal medicines are facing price increases
.
In this context, it is worth pondering how to better develop Chinese patent medicine enterprises
.
As analyzed by Xiangcai Securities, the centralized procurement of Chinese patent medicines will bring about a drop in prices, but at the same time, it will also bring about a reshuffle in the Chinese patent medicine market.
Cost control is more critical, and companies with cost and variety advantages are expected to achieve price-for-price amount
.

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