Focusing on the post-centralized procurement era, how should pharmaceutical companies respond?

[Pharmaceutical Network Market Analysis] The results of the seventh batch of centralized procurement have been releas.
A total of 60 drugs are to be selected, with an average price reduction of 4
According to the agreed procurement volume, it is estimated that the annual cost savings will be 15 billion yu.
The results of this collection are expected to be implemented in November 202Judging from the degree of competition, the competition in this centralized procurement is still fier.
More than 10 varieties such as oseltamivir have attracted competition from more than 10 compani.
Some varieties are selected in order to seize market share even at the price of less than 1 yu.
In the future, the entire market will be select.
The pattern may change drastical.
Up to now, the National Medical Insurance Bureau has carried out 7 batches of centralized procurement of state-organized drugs, covering a total of 294 kinds of dru.
The amount involved accounts for about 35% of the annual purchase amount of chemical drugs and biological drugs in public medical institutions based on pre-purchase pric.
Among them, the centralized procurement of the first six batches of drugs dropped by an average of 53%, saving a total of more than 260 billion yuan in medical expens.
Under the normalization of centralized procurement, drug price reduction has become a trend, and the profit margin of pharmaceutical companies will also be greatly reduc.
So, focusing on the post-centralized procurement era, how should pharmaceutical companies respond? The industry believes that one of the purposes of centralized procurement is to squeeze out inflated drug prices, forcing pharmaceutical companies to innovate and transfo.
For pharmaceutical companies, by exchanging price for volume, sales expenses can be greatly reduced, and the saved costs can be focused on the research and development of innovative drugs, first generic drugs, e.
, and constantly improve product pipelines and reserve advantageous products, thereby improving the competitiveness of enterpris.
power and market positi.
In recent years, many pharmaceutical companies have begun to transform from imitation to innovation due to the pressure of centralized procureme.
For example, the revenue of Hansoh Pharmaceutical, a large traditional pharmaceutical company, was once supported by generic dru.
With the launch of the centralized procurement policy, Hansoh Pharmaceutical's core products, Oulaning and Xinwei, both won the bids in the centralized procurement pilot and centralized procurement expansi.
And two price cuts have undoubtedly had an impact on the company's performance and made it determined to innovate and transform in an all-round w.
From 2019 to 2021, the company's R&D investment accounted for 191%, 141% and 109% of the current revenue, respective.
With high-intensity R&D investment, it has 36 research projects in the clinical stage, of which more than 25 clinical projects of innovative drugs have entered the clinical sta.
In 2021, the company will apply for and obtain a total of 15 clinical approvals, including 14 clinical approvals related to innovative dru.
The sales of the five innovative drugs approved for marketing that year reached 2 billion yuan, a year-on-year increase of 169%, accounting for 40% of the total reven.
In addition to innovation and transformation, pharmaceutical companies also need to strengthen the budget management of sales expenses, because under the trend of lowering drug prices by centralized procurement, rational control of cost output is a major issue that pharmaceutical companies need to fa.
The industry believes that it is possible to actively reduce the negative impact of centralized procurement on operating income and profits through market activity planning and personnel layout strategi.
In recent years, multinational pharmaceutical companies including Roche, Eli Lilly, Sanofi, e.
have adjusted their business layout and organizational structure, by selling, directly cutting off the research projects or canceling the core product team, in order to reduce expenses and focus on main business purpo.
And some local pharmaceutical companies such as Hengrui and Junshi are also taking action to hedge the pressure and challenges brought by centralized procureme.
Shanghai Securities pointed out that in the post-centralized procurement era, the implementation of the DRG payment policy is beneficial to companies with strong innovation capabilities, rich product pipelines and a better competitive landscape, and is expected to continue to benefit in the long-te.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyo.