Execution of 23 large varieties with quantity procurement results

1.
A major pharmaceutical province, implement the first batch of purchases

1.
A major pharmaceutical province, implement the first batch of purchases

On June 7, the Hubei Provincial Pharmaceutical Price and Bidding Procurement Management Service Network issued the "Notice on the Implementation of the Results of the First Batch of Drug Centralized Purchases in Hubei Province" (hereinafter referred to as the "Notice")
.

According to the content of the "Notice", the drugs selected in this volume purchase of Hubei Province are 23 generic drugs and 124 selected product regulations, which are the "Results of the Selection of the First Batch of Drugs Centralized Purchase in Hubei Province" respectively announced by the Wuhan Joint Procurement Office of Pharmaceutical Devices.
The 113 selected product regulations and 11 selected product regulations of the "Supplementary List of the First Batch of Drugs in Hubei Province for Centralized Purchase of Supplementary Negotiations and Bargaining Lists"
.

The selected varieties include levofloxacin hydrochloride, doxofylline, ciprofloxacin and many other commonly used injections
.

The selected companies involved include Hunan Kelun Pharmaceutical, CSPC and many other well-known pharmaceutical companies

This "Notice" clarified the scope and time of drug implementation
.

When the results of the national or inter-provincial alliance drug procurement in the procurement cycle overlap with the Hubei Province drug centralized procurement results, the Hubei Province drug centralized procurement results will be implemented during the procurement cycle, and the national or provincial drug procurement results will be executed after the procurement cycle ends.

The "Notice" also emphasized the priority to use the selected drugs.
Each medical institution should strictly implement the results of centralized procurement and conduct online procurement on the provincial procurement platform to ensure that the agreed procurement volume is completed within the procurement cycle
.

Improve the priority procurement and rational use mechanism of selected drugs, encourage the rational use of selected drugs in centralized procurement, and incorporate the use of selected drugs into the performance evaluation of medical institutions and medical staff

This is the first batch of pharmaceuticals in Hubei Province to carry out centralized procurement of drugs, and Hubei Province, as a major pharmaceutical province, will also have a certain demonstration effect on other provinces as a result of the implementation of mass procurement
.

2.
Injections are the general direction of provincial procurement

2.
Injections are the general direction of provincial procurement

According to the "Notice", the first batch of 23 varieties purchased in Hubei Province this time are all injections
.

It can also be seen from the previously released varieties of purchases with quantity in various provinces that injections are still the general direction of purchase with quantity

On June 2, the "Announcement on the Procurement of Drugs in the "Eight Provinces and Two Districts" Inter-Provincial Alliance" issued by the Heilongjiang Province Drug Centralized Procurement Network showed that 21 large varieties were selected, of which 19 were injections, accounting for approximately this time.
90% of the total purchase of drugs
.

On May 17, the Ningxia Medical Security Bureau issued the "Notice of the Public Resource Exchange Administration of the Health and Health Commission of the Ningxia Hui Autonomous Region Medical Insurance Bureau on the implementation of the first batch of inter-provincial alliance drug centralized procurement results", showing that the selected varieties are 12, 10 of which are injections
.

As we all know, injections are important drugs in China's medical industry
.

Although the annual growth rate of the injection market has declined in recent years under the influence of policies such as "restraint restriction order" and outpatient infusion supervision, its market scale is still expanding

With the formal implementation of the injection consistency evaluation policy and the trend of medical insurance control fees, it is expected that more injections will be included in the centralized procurement in the future, which also means that the price reduction of injections has become a trend, and the future 100 billion injection market will Facing a shuffle
.

3.
A large number of drugs have achieved price cuts

3.
A large number of drugs have achieved price cuts

It is understood that in November 2020, the Hubei Provincial Medical Insurance Bureau officially launched the first batch of centralized procurement of drugs in Hubei Province, and conducted special centralized procurement of 23 drugs
.

Under the guidance of the Provincial Medical Insurance Bureau, the procurement work was specifically operated by Wuhan City

As we all know, whether it is national centralized procurement or mass procurement of drugs, the ultimate goal is to achieve price reductions
.

In recent years, various provincial-level procurement policies have also been gradually implemented

In addition to Hubei Province, many provinces have issued relevant documents for volume procurement
.

For example, the General Office of the People’s Government of Shanxi Province issued the “Implementation Opinions on Promoting the Normalized and Institutionalized Development of Centralized and Volume Procurement of Medicines and the Classified and Centralized Procurement of Medical Consumables”; the Anhui Provincial Medical Security Bureau issued the “Regarding the Issuance of Concentrated Drugs in Anhui Province in 2021”.

At present, Hunan, Hebei, Fujian, Jiangxi and other provinces have begun to explore local volume procurement
.
While supervising the implementation of the results of the new volume procurement, the state is also actively promoting the centralized volume procurement of provincial medicines and high-value consumables
.

In the previous centralized procurement of provinces, the price cuts for volume purchases in all provinces were large
.
For example, the first batch of 40 drugs in Shandong Province was purchased in a centralized manner.
The average decline in drugs was more than 60%, and nearly ten product regulations fell by 90%.
In addition, in the first round of procurement in Jiangsu Province, 11 of the 14 varieties were purchased.
This negotiation succeeded, with the largest decrease of 93%, and the average decrease of the fully competitive group was 42%
.

It is worth noting that the impact of price cuts is not limited to the market in one province
.
On February 3, Hunan Province issued the "Notice on Carrying out the First Round of Inter-provincial Price Linkage Work in 2021", which will conduct price linkage for 8,807 drugs.
The notice pointed out that enterprises need to declare the lowest provincial-level winning bid (linked) in the country.
Drugs that fail to declare the linkage price information within the prescribed time shall be deemed to have given up linkage
.
Retain the original online price information in its provincial procurement platform, and suspend its online eligibility in accordance with the relevant requirements of the "Notice", and will not accept the drug to apply for online again within two years
.

It is reported that Hubei Province, through centralized procurement, is to further reduce the medical burden of patients and benefit more patients
.
In the future, there may be more provinces that will carry out drug purchases.
While realizing more drug price reductions, the competition between pharmaceutical companies will also become more intense
.

Attachment: List of selected drugs for the first batch of drugs in Hubei Province