In response to centralized procurement, pharmaceutical companies are accelerating their breakthrough in three directions

The National Medical Insurance Administration has adjusted the list of medical insurance drugs for three consecutive years since 2018, and organized 6 batches of national drug centralized procurement
.
In this context, a large number of common diseases, major diseases, rare disease drugs, etc.
have begun to be included in medical insurance, which has benefited more and more patients
.
However, centralized procurement will often bring about price cuts of medicines and further increase in the concentration of a large number of medicines in the market
.
Therefore, in the face of the continuous advancement of centralized procurement, the industry predicts that a batch of pharmaceutical companies may also be eliminated at an accelerated pace in the future
.
Under the general trend of this industry, pharmaceutical companies urgently need to find ways to break through
.
It is worth noting that from the current point of view, the industry believes that pharmaceutical companies have begun to adapt to changes through positive changes, and are still accelerating breakthroughs in three directions
.
Enhance R&D capabilities and obtain more profits with the pricing power of original drugs.
In recent years, under the pressure of the country's policies to encourage innovation and mass procurement, pharmaceutical companies have begun to increase R&D investment to enhance R&D capabilities and obtain more profits.

.
This can be seen from the rising R&D costs of pharmaceutical companies
.
For example, Hengrui Pharmaceuticals has been increasing R&D investment in recent years.
The R&D expenses in the first half of the year reached 2.
581 billion yuan, ranking in the forefront, with a year-on-year increase of 38.
48%
.
Fosun Pharma and Mindray Medical followed closely behind, with a scale of RMB 1.
562 billion and RMB 1.
061 billion, representing a year-on-year increase of 29.
68% and 17.
5% respectively
.
And through vigorous research and development, in fact, many companies' profits have indeed increased
.
For example, Hengrui Pharmaceuticals showed in its semi-annual report that during the reporting period, the company’s innovative drugs had achieved sales revenue of 5.
207 billion yuan, an increase of 43.
80% year-on-year, accounting for 39.
15% of the overall sales revenue.
Growth played a pulling role
.
The industry believes that from the perspective of domestic pharmaceutical companies, the investment in innovative R&D is still rising, and the R&D strength of China's pharmaceutical companies will continue to improve, and the innovative drug industry will also enter a stage of rapid development
.
In the future, companies with continuous R&D capabilities and true innovation capabilities are expected to gain more market space
.
Increasing investment in digitalization and extending the service end With the rise of emerging technologies such as big data and AI, Internet platforms have gradually become a new force in the transformation and upgrading of China's medical system
.
At the same time, its integration and innovation with the pharmaceutical industry has gradually become a new trend in the development of the industry
.
It is reported that at the 4th China International Import Expo in 2021, Hanhui Pharmaceutical signed a strategic cooperation agreement with Huiyi Tianxia Internet Medical Platform
.
According to the agreement, the two parties will integrate resources to jointly explore the digital full-course management model for chronic diseases such as digestion and hyperlipidemia, and create a high-quality closed loop of out-of-hospital health management for patients with chronic diseases
.
In June, Shanghai Youlin Pharmaceutical Technology Co.
, Ltd.
also announced that it had completed an A+ round of financing of more than 100 million yuan
.
According to the announcement, after the financing, the funds obtained by the clinical medicine will be used to accelerate the development and deployment of the digital clinical trial system, and the expansion of the professional clinical service team
.
From the perspective of the industry, as domestic and foreign pharmaceutical companies are making use of digitalization and Internet platforms to accelerate transformation and the ability to transform pharmaceutical science and technology achievements, the pharmaceutical industry will usher in a great opportunity for transformation and upgrading, and Internet platforms and digital technologies will also become helpful drugs.
A strong driving force for corporate development
.
Through cooperation and product transformation, many listed pharmaceutical companies are feeling the pressure under the background of the normalization of centralized procurement on multiple tracks such as medical treatment
.
In order to cope with the shrinking profits of generic drugs caused by centralized procurement, most pharmaceutical companies have accelerated their pace of transformation and entered the fields of medical care and general health
.
In view of the rise of the consumer medical industry, more and more pharmaceutical companies are currently engaged in the "medicine + medical" dual track through mergers and acquisitions and product transformation
.
Taking Yuanda Pharmaceutical as an example, it announced in November that the company and InnovHeart Srl reached a strategic cooperation agreement on equity investment and product introduction
.
Yuanda Pharmaceuticals will acquire approximately 17.
8% of InnovHeart's equity for approximately 43.
8 million euros (equivalent to 317 million yuan) and the exclusive development, production and commercialization rights of Saturn, a global innovative medical device for mitral valve replacement, in China
.
In addition to Yuanda Pharmaceuticals, many companies are also accelerating their expansion in the medical field through cooperation, mergers and acquisitions
.
From an overall point of view, pharmaceutical companies embrace the medical industry mainly from three aspects: first, pharmaceutical companies provide services in conjunction with medical institutions, second, cooperation between pharmaceutical companies and device manufacturers, and third, pharmaceutical companies embrace medical digitalization
.
Conclusion In general, under the pressure of centralized drug procurement, pharmaceutical companies are paying more and more attention to innovation and R&D; they are also actively investing in digital innovation, developing new business models, and joining new tracks through cooperation and transformation
.
In the future, under these positive actions, the industry expects that competition in the domestic pharmaceutical industry will become increasingly fierce, and the innovation capabilities and technical strength of enterprises will also become stronger
.