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    Home > Medical News > Latest Medical News > How much has the price of centralized procurement of drugs into pharmacies dropped?

    How much has the price of centralized procurement of drugs into pharmacies dropped?

    • Last Update: 2021-11-13
    • Source: Internet
    • Author: User
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    In October 2021, the country's fifth batch of centralized procurement of drugs will be implemented, and retail pharmacies will continue to participate in the expansion of centralized procurement
    .
    Since the full implementation of the “4+7” volume procurement in March 2019, the scale of drug sales in physical retail pharmacies has grown steadily, but the growth rate has gradually slowed down.
    According to R-PDB retail data from the China Pharmaceutical Industry Information Center, 2019Q1 to 2021Q2 The compound quarterly growth rate was 3.
    7%
    .
    In the long run, the state's centralized procurement has promoted the outflow of prescriptions from public hospitals, and will bring huge market space and passenger flow to retail pharmacies
    .
     
    2019Q1-2021Q2 National sample drugstore retail market drug sales scale and growth (unit: 100 million yuan)
     
    The retail price of the winning bidders has been lowered, and the overall trend of "price for quantity" is obvious
     
    In the early stage of the implementation of volume procurement, due to the phenomenon of different prices for the same drug in the retail terminal and the hospital terminal, the price of the retail terminal was relatively high, the outflow of prescriptions was not as expected, and even pharmacies considered removing centralized procurement drugs for profit reasons
    .
    However, with the implementation of the medical insurance policy requirements, more large chain pharmacies have participated in the centralized procurement platform, relying on channel and scale advantages to achieve strategic supply with the company, and completed the reduction of the retail price of the centralized procurement winning products
    .
     
      While the interests of retail pharmacies are relatively protected, the price reduction of the winning bids for centralized procurement has improved the availability of medicines for patients and promoted the increase in sales of the winning bids
    .
    Both the retail terminal and the hospital terminal market reflect the overall situation of "price-for-quantity" of centralized sourcing varieties
    .
     
     
      2019-2021E The first three batches of national centralized procurement of standard sample retail pharmacies sales (unit: 100 million yuan)
      Note: The successful bid standard is "generic name of drug + dosage form + specification of the same content + enterprise"
     
      Sales volume of sample retail pharmacies for the first three batches of national centralized procurement in 2019-2021E (unit: 10,000 pieces)
      Note: The successful bid standard is "generic name of drug + dosage form + specification of the same content + enterprise"
     
      Non-successful bidders are gradually being replaced by winning bidders
     
      After losing the hospital terminal market, the centralized procurement non-winning enterprises have turned their energy to the retail terminal market in order to regain their market share
    .
    However, with multiple rounds of centralized procurement, the impact on retail has expanded, and the advantages of the retail price of the winning bidder have gradually emerged.
    The non-original generic drugs that have not won the bid are due to low brand influence, low patient loyalty, and high prices.
    , The market share is gradually being replaced by the winning bidders, and the growth of the sales and sales volume of the non-winning bidders is slowing down or declining
    .
     
      2019-2021E The first three batches of national centralized procurement of non-standard product retail pharmacies sales (unit: 100 million yuan)
      Note: The non-standard product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      Sales volume of retail pharmacies in the first three batches of national centralized procurement of non-standard products in 2019-2021E (unit: 10,000 pieces)
      Note: The non-standard product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      There is still a big difference in the price drop between retail terminals and hospital terminals
     
      According to R-PDB retail data from the China Pharmaceutical Industry Information Center, the coverage of the first three batches of centralized procurement of successful bid drugs in retail pharmacies is less than 40%, and most of the successful bid drugs are not sold in retail terminals
    .
    For most patients with chronic diseases, they are highly loyal to products and are unwilling to easily change brands or varieties
    .
    In retail pharmacies, two situations may occur.
    One is that patients agree to purchase the same ingredients and different brands for replacement, and the price will be higher than that of the successful bidding product.
    For non-successful companies , this is also an important way to gain market share; Patients would rather spend time and registration fees to return to the hospital to purchase centralized medicines
    .
     
      The first three batches of national centralized procurement of standard sample retail pharmacies
      Note: The winning bid for the same product is "generic name of the drug + dosage form + specification of the same content + specification of the same packaging + enterprise"; the product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      In terms of the price of a single product, it can be seen that the average price drop of the current centralized procurement standard products in the retail terminal is significantly lower than that of the hospital terminal.
    The main reasons are: Different pharmacies in China have different levels of participation in centralized procurement, resulting in different chain pharmacies in the price adjustment range and time.
    Second, many provinces and cities have introduced a price control line that allows a 15% increase in the sales of selected pharmacies in centralized procurement
    .
    Thirdly, single pharmacies or small chain pharmacies are limited and due to the scale of channels, insufficient negotiation ability, unable to participate in centralized procurement or strive for lower purchase prices.
    To ensure profitability, pharmacies cannot use medical insurance payment standards for pricing, and can only maintain relatively low prices.
    High sales
    .
     
      The average price cuts of the first three batches of countries’ centralized procurement of bid-winning products through different channels (2021vs2019)
     
      From the perspective of long-term development, it is foreseeable that although retail pharmacies lose a certain amount of profit by the form of "price-for-quantity", it also brings more passenger flow and negotiation advantages with enterprises
    .
    If the price of the hospital is maintained for a long time, consumers will flow into the hospital due to the low price of the hospital.
    This is also what retail chain companies do not want to see, so "same drug at the same price" must be the future trend
    .
     
      The reform of centralized procurement has promoted changes in the pharmaceutical industry
    .
    As a manufacturer, the outflow of prescriptions has brought more market space and passenger flow to the retail channel, which forces prescription drug manufacturers to pay attention to the pharmacy channel and accelerate the progress of cooperation with retail pharmacies; as a retail pharmacy, physical retail pharmacies are ushering in the future At the same time as the passenger flow growth dividend, it will also face the problem of the transformation of the profit model of pharmacies brought about by the decline in the gross profit of drugs ; as patients, the price of centralized procurement of drugs has dropped sharply, and there is no need to go to the hospital to queue up for registration.
    The economy and convenience
    .
      In October 2021, the country's fifth batch of centralized procurement of drugs will be implemented, and retail pharmacies will continue to participate in the expansion of centralized procurement
    .
    Since the full implementation of the “4+7” volume procurement in March 2019, the scale of drug sales in physical retail pharmacies has grown steadily, but the growth rate has gradually slowed down.
    According to R-PDB retail data from the China Pharmaceutical Industry Information Center, 2019Q1 to 2021Q2 The compound quarterly growth rate was 3.
    7%
    .
    In the long run, the state's centralized procurement has promoted the outflow of prescriptions from public hospitals, and will bring huge market space and passenger flow to retail pharmacies
    .
     
      2019Q1-2021Q2 National sample drugstore retail market drug sales scale and growth (unit: 100 million yuan)
     
      The retail price of the winning bidders has been lowered, and the overall trend of "price for quantity" is obvious
     
      In the early stage of the implementation of volume procurement, due to the phenomenon of different prices for the same drug in the retail terminal and the hospital terminal, the price of the retail terminal was relatively high, the outflow of prescriptions was not as expected, and even pharmacies considered removing centralized procurement drugs for profit reasons
    .
    However, with the implementation of the medical insurance policy requirements, more large chain pharmacies have participated in the centralized procurement platform, relying on channel and scale advantages to achieve strategic supply with the company, and completed the reduction of the retail price of the centralized procurement winning products
    .
     
      While the interests of retail pharmacies are relatively protected, the price reduction of the winning bids for centralized procurement has improved the availability of medicines for patients and promoted the increase in sales of the winning bids
    .
    Both the retail terminal and the hospital terminal market reflect the overall situation of "price-for-quantity" of centralized sourcing varieties
    .
     
     
      2019-2021E The first three batches of national centralized procurement of standard sample retail pharmacies sales (unit: 100 million yuan)
      Note: The successful bid standard is "generic name of drug + dosage form + specification of the same content + enterprise"
     
      Sales volume of sample retail pharmacies for the first three batches of national centralized procurement in 2019-2021E (unit: 10,000 pieces)
      Note: The successful bid standard is "generic name of drug + dosage form + specification of the same content + enterprise"
     
      Non-successful bidders are gradually being replaced by winning bidders
     
      After losing the hospital terminal market, the centralized procurement non-winning enterprises have turned their energy to the retail terminal market in order to regain their market share
    .
    However, with multiple rounds of centralized procurement, the impact on retail has expanded, and the advantages of the retail price of the winning bidder have gradually emerged.
    The non-original generic drugs that have not won the bid are due to low brand influence, low patient loyalty, and high prices.
    , The market share is gradually being replaced by the winning bidders, and the growth of the sales and sales volume of the non-winning bidders is slowing down or declining
    .
     
      2019-2021E The first three batches of national centralized procurement of non-standard product retail pharmacies sales (unit: 100 million yuan)
      Note: The non-standard product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      Sales volume of retail pharmacies in the first three batches of national centralized procurement of non-standard products in 2019-2021E (unit: 10,000 pieces)
      Note: The non-standard product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      There is still a big difference in the price drop between retail terminals and hospital terminals
     
      According to R-PDB retail data from the China Pharmaceutical Industry Information Center, the coverage of the first three batches of centralized procurement of successful bid drugs in retail pharmacies is less than 40%, and most of the successful bid drugs are not sold in retail terminals
    .
    For most patients with chronic diseases, they are highly loyal to products and are unwilling to easily change brands or varieties
    .
    In retail pharmacies, two situations may occur.
    One is that patients agree to purchase the same ingredients and different brands for replacement, and the price will be higher than that of the successful bidding product.
    For non-successful companies , this is also an important way to gain market share; Patients would rather spend time and registration fees to return to the hospital to purchase centralized medicines
    .
     
      The first three batches of national centralized procurement of standard sample retail pharmacies
      Note: The winning bid for the same product is "generic name of the drug + dosage form + specification of the same content + specification of the same packaging + enterprise"; the product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      In terms of the price of a single product, it can be seen that the average price drop of the current centralized procurement standard products in the retail terminal is significantly lower than that of the hospital terminal.
    The main reasons are: Different pharmacies in China have different levels of participation in centralized procurement, resulting in different chain pharmacies in the price adjustment range and time.
    Second, many provinces and cities have introduced a price control line that allows a 15% increase in the sales of selected pharmacies in centralized procurement
    .
    Thirdly, single pharmacies or small chain pharmacies are limited and due to the scale of channels, insufficient negotiation ability, unable to participate in centralized procurement or strive for lower purchase prices.
    To ensure profitability, pharmacies cannot use medical insurance payment standards for pricing, and can only maintain relatively low prices.
    High sales
    .
     
      The average price cuts of the first three batches of countries’ centralized procurement of bid-winning products through different channels (2021vs2019)
     
      From the perspective of long-term development, it is foreseeable that although retail pharmacies lose a certain amount of profit by the form of "price-for-quantity", it also brings more passenger flow and negotiation advantages with enterprises
    .
    If the price of the hospital is maintained for a long time, consumers will flow into the hospital due to the low price of the hospital.
    This is also what retail chain companies do not want to see, so "same drug at the same price" must be the future trend
    .
     
      The reform of centralized procurement has promoted changes in the pharmaceutical industry
    .
    As a manufacturer, the outflow of prescriptions has brought more market space and passenger flow to the retail channel, which forces prescription drug manufacturers to pay attention to the pharmacy channel and accelerate the progress of cooperation with retail pharmacies; as a retail pharmacy, physical retail pharmacies are ushering in the future At the same time as the passenger flow growth dividend, it will also face the problem of the transformation of the profit model of pharmacies brought about by the decline in the gross profit of drugs ; as patients, the price of centralized procurement of drugs has dropped sharply, and there is no need to go to the hospital to queue up for registration.
    The economy and convenience
    .
      In October 2021, the country's fifth batch of centralized procurement of drugs will be implemented, and retail pharmacies will continue to participate in the expansion of centralized procurement
    .
    Since the full implementation of the “4+7” volume procurement in March 2019, the scale of drug sales in physical retail pharmacies has grown steadily, but the growth rate has gradually slowed down.
    According to R-PDB retail data from the China Pharmaceutical Industry Information Center, 2019Q1 to 2021Q2 The compound quarterly growth rate was 3.
    7%
    .
    In the long run, the state's centralized procurement has promoted the outflow of prescriptions from public hospitals, and will bring huge market space and passenger flow to retail pharmacies
    .
     
      2019Q1-2021Q2 National sample drugstore retail market drug sales scale and growth (unit: 100 million yuan)
     
      The retail price of the winning bidders has been lowered, and the overall trend of "price for quantity" is obvious
      The retail price of the winning bidders has been lowered, and the overall trend of "price for quantity" is obvious
     
      In the early stage of the implementation of volume procurement, due to the phenomenon of different prices for the same drug in the retail terminal and the hospital terminal, the price of the retail terminal was relatively high, the outflow of prescriptions was not as expected, and even pharmacies considered removing centralized procurement drugs for profit reasons
    .
    However, with the implementation of the medical insurance policy requirements, more large chain pharmacies have participated in the centralized procurement platform, relying on channel and scale advantages to achieve strategic supply with the company, and completed the reduction of the retail price of the centralized procurement winning products
    .
     
      While the interests of retail pharmacies are relatively protected, the price reduction of the winning bids for centralized procurement has improved the availability of medicines for patients and promoted the increase in sales of the winning bids
    .
    Both the retail terminal and the hospital terminal market reflect the overall situation of "price-for-quantity" of centralized sourcing varieties
    .
     
     
      2019-2021E The first three batches of national centralized procurement of standard sample retail pharmacies sales (unit: 100 million yuan)
      Note: The successful bid standard is "generic name of drug + dosage form + specification of the same content + enterprise"
     
      Sales volume of sample retail pharmacies for the first three batches of national centralized procurement in 2019-2021E (unit: 10,000 pieces)
      Note: The successful bid standard is "generic name of drug + dosage form + specification of the same content + enterprise"
     
      Non-successful bidders are gradually being replaced by winning bidders
      Non-successful bidders are gradually being replaced by winning bidders
     
      After losing the hospital terminal market, the centralized procurement non-winning enterprises have turned their energy to the retail terminal market in order to regain their market share
    .
    However, with multiple rounds of centralized procurement, the impact on retail has expanded, and the advantages of the retail price of the winning bidder have gradually emerged.
    The non-original generic drugs that have not won the bid are due to low brand influence, low patient loyalty, and high prices.
    , The market share is gradually being replaced by the winning bidders, and the growth of the sales and sales volume of the non-winning bidders is slowing down or declining
    .
     
      2019-2021E The first three batches of national centralized procurement of non-standard product retail pharmacies sales (unit: 100 million yuan)
      Note: The non-standard product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      Sales volume of retail pharmacies in the first three batches of national centralized procurement of non-standard products in 2019-2021E (unit: 10,000 pieces)
      Note: The non-standard product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      There is still a big difference in the price drop between retail terminals and hospital terminals
      There is still a big difference in the price drop between retail terminals and hospital terminals
     
      According to R-PDB retail data from the China Pharmaceutical Industry Information Center, the coverage of the first three batches of centralized procurement of successful bid drugs in retail pharmacies is less than 40%, and most of the successful bid drugs are not sold in retail terminals
    .
    For most patients with chronic diseases, they are highly loyal to products and are unwilling to easily change brands or varieties
    .
    In retail pharmacies, two situations may occur.
    One is that patients agree to purchase the same ingredients and different brands for replacement, and the price will be higher than that of the successful bidding product.
    For non-successful companies , this is also an important way to gain market share; Patients would rather spend time and registration fees to return to the hospital to purchase centralized medicines
    .
    Pharmaceutical medicine pharmaceutical companies business enterprises Hospital Hospital Hospital
     
      The first three batches of national centralized procurement of standard sample retail pharmacies
      Note: The winning bid for the same product is "generic name of the drug + dosage form + specification of the same content + specification of the same packaging + enterprise"; the product specification is "generic name of the drug + dosage form + specification of the same content + enterprise"
     
      In terms of the price of a single product, it can be seen that the average price drop of the current centralized procurement standard products in the retail terminal is significantly lower than that of the hospital terminal.
    The main reasons are: Different pharmacies in China have different levels of participation in centralized procurement, resulting in different chain pharmacies in the price adjustment range and time.
    Second, many provinces and cities have introduced a price control line that allows a 15% increase in the sales of selected pharmacies in centralized procurement
    .
    Thirdly, single pharmacies or small chain pharmacies are limited and due to the scale of channels, insufficient negotiation ability, unable to participate in centralized procurement or strive for lower purchase prices.
    To ensure profitability, pharmacies cannot use medical insurance payment standards for pricing, and can only maintain relatively low prices.
    High sales
    .
    Pharmacy pharmacy pharmacy
     
      The average price cuts of the first three batches of countries’ centralized procurement of bid-winning products through different channels (2021vs2019)
     
      From the perspective of long-term development, it is foreseeable that although retail pharmacies lose a certain amount of profit by the form of "price-for-quantity", it also brings more passenger flow and negotiation advantages with enterprises
    .
    If the price of the hospital is maintained for a long time, consumers will flow into the hospital due to the low price of the hospital.
    This is also what retail chain companies do not want to see, so "same drug at the same price" must be the future trend
    .
     
      The reform of centralized procurement has promoted changes in the pharmaceutical industry
    .
    As a manufacturer, the outflow of prescriptions has brought more market space and passenger flow to the retail channel, which forces prescription drug manufacturers to pay attention to the pharmacy channel and accelerate the progress of cooperation with retail pharmacies; as a retail pharmacy, physical retail pharmacies are ushering in the future At the same time as the passenger flow growth dividend, it will also face the problem of the transformation of the profit model of pharmacies brought about by the decline in the gross profit of drugs ; as patients, the price of centralized procurement of drugs has dropped sharply, and there is no need to go to the hospital to queue up for registration.
    The economy and convenience
    .
    Medicine, medicine, medicine
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