Increased by 9.77%! 2021H1 China's public medical institutions’ terminal drug sales amounted to 617.4 billion yuan, achieving restorative growth

In the first half of 2021, as the domestic epidemic gradually eases, China's economy continues to recover steadily, market demand continues to rebound, and economic development is steadily improving
.

In the pharmaceutical industry, driven by policies, the pharmaceutical and health industry is undergoing profound changes: on the one hand, the state attaches importance to the pharmaceutical and health industry, encourages innovation, the aging of the population continues to deepen, and the growing health needs of the people continue to increase.

2015-2021H1 China's public medical institutions terminal drug sales and growth

Source: Mi Nei.
com, China's public medical institutions terminal competition pattern

Nationally discussed varieties are exchanged for market prices, the price and amount of nationally-sourced varieties are double hit, and the varieties of monitored drugs continue to fall

Nationally discussed varieties are exchanged for market prices, the price and amount of nationally-sourced varieties are double hit, and the varieties of monitored drugs continue to fall

The pharmaceutical industry is a highly regulated industry and is relatively heavily influenced by policies
.

The first half of 2021 is the implementation period for the first batch of 4+7 centralized procurement, the first batch of 4+7 expanded centralized procurement, the second batch, the third batch and the fourth batch of national centralized procurement.
The first three batches of four-round collection During the implementation period, the total sales of generic name products in China’s public medical institutions accounted for the proportion of total drug sales from 12.
67% in the first half of 2019 to 6.
64% in the first half of 2021.
Their sales were similar to those in the first half of 2020.
The ratio has dropped by 32.
01%.
On the one hand, the successful bid price of the selected varieties has dropped sharply, resulting in a certain degree of decline in sales; on the other hand, the non-selected varieties have implemented a step-by-step price reduction, while facing the market squeeze of the selected varieties, resulting in a large sales volume.
Decline, resulting in a sharp drop in sales
.

The varieties in the national key monitoring catalogue continue to decline.
In the first half of 2021, the sales of public medical institutions in China have fallen by 38.
94% compared with the first half of 2020, and their sales proportion has also fallen from 3.
95% in the first half of 2019 to 2021.
At 0.
85% in the first half of the year, the market share continued to shrink
.

Most of these products have relatively low clinical value and will be gradually eliminated by the market in the future

Most of the medical insurance negotiated products are innovative drugs or exclusive products that have been newly launched in recent years with high clinical value and relatively high prices.
After the medical insurance negotiation, the price of drugs has been greatly reduced, which has greatly improved the availability of drugs and the market demand is strong.
In the first half of the year, the sales of such drugs maintained a rapid growth momentum, increasing by 29.
31% compared with the first half of 2020.
The proportion of sales also increased from 5.
73% in the first half of 2019 to 9.
29% in the first half of 2021.
, The channel for such drugs to exchange prices for the market has been opened
.

2021H1 China's public medical institutions' terminal sales of various drugs and their growth

Note: Collected varieties, national key monitored varieties, and nationally negotiated varieties are calculated based on the varieties that are being implemented in the first half of 2021; collectively collected varieties include the first to third batches

Source: Mi Nei.
com, China's public medical institutions terminal competition pattern

Biopharmaceuticals surged 21.
83%, and their market position continued to improve; chemical medicines and Chinese patent medicines recovered, but their market position declined

Biopharmaceuticals surged 21.
83%, and their market position continued to improve; chemical medicines and Chinese patent medicines recovered, but their market position declined

From the perspective of the distribution of medicines, in the first half of 2021, the sales of chemical drugs, Chinese patent medicines, and biological drugs accounted for 67.
6%, 19.
6%, and 12.
8% of the sales of Chinese public medical institutions in the first half of 2021; compared with the first half of 2020 , The market share of chemical medicines and Chinese patent medicines is showing a downward trend, the market share of biological medicines continues to rise, and the market position continues to improve
.

Chemical drugs: In the first half of 2021, the impact of the new crown epidemic will be reduced.
The market for terminal chemical drugs in public medical institutions in China is gradually recovering.
Affected by factors such as price cuts of negotiated products and stricter medical insurance control fees, the sales of chemical drugs have shown a slight increase, which is 7.
53% higher than that in the first half of 2020
.

The proportion of sales still showed a downward trend, dropping to 67.

Chinese patent medicines: In recent years, the overall tone of the state's vigorous support for the inheritance and innovation of Chinese medicine has not changed.
The development of Chinese medicine has become a "national strategy", and a series of policies have been issued to encourage the development of Chinese medicine
.

However, the market for proprietary Chinese medicines has been sluggish in recent years.

Biological medicine: In recent years, the state has taken biological medicine as the main direction of strategic emerging industries, and has continued to increase policy support
.

Benefited from the support of national policies, and driven by factors such as technological innovation, the importance of enterprises and the increase of residents’ awareness of health care, China’s biopharmaceutical market has rapidly expanded.

2017-2021H1 China's public medical institutions' terminal sales of various drug types and their growth

Source: Mi Nei.
com, China's public medical institutions terminal competition pattern

Sales of urban public hospitals recovered rapidly, with a year-on-year increase of 12.
57%

Sales of urban public hospitals recovered rapidly, with a year-on-year increase of 12.
57%

After the new crown epidemic in China is gradually brought under control, the number of consultations in public medical institutions has increased sharply.
The number of consultations in public hospitals from January to April 2021 has increased by 46.
8% compared with January to April 2020.
Among them, tertiary hospitals have the largest increase, reaching 63.
6%; the increase in the number of doctors and treatments has resulted in a recovery in the sales of public hospitals
.

Urban public hospitals are the main channels for patients to seek medical treatment, and their medication categories are mainly therapeutic drugs for severe, serious and emergency such as tumors, cardiovascular and cerebrovascular diseases, and diabetes

Among primary medical institutions, community health service centers (stations) are chronic disease management centers.
Chronic disease medications dominate this channel.
The further advancement of the hierarchical diagnosis and treatment system and the sinking of corporate drug sales channels have promoted community health services.
The central (station) drug market has grown.
In the first half of 2021, the sales of community health service centers (stations) drugs increased by 4.
93% compared with the first half of 2020; the drugs used in township health centers were mainly drugs for common diseases and frequently-occurring diseases.
After the outbreak of the new crown epidemic, the people have paid more attention to health and hygiene, which has reduced the number of common and frequently-occurring patients.
The number of visits in government-run township hospitals from January to April 2021 has only increased compared with January to April 2020.
Therefore, the sales of medicines in township hospitals did not increase significantly in the first half of 2021, and the growth rate was only 3.
46% compared with the first half of 2020
.

2021H1 China's public medical institutions' terminal sales proportions and growth of the four major channels

Source: Mi Nei.
com, China's public medical institutions terminal competition pattern

The era of meager profits for generic drugs is coming, and innovative drugs usher in the golden period of development

The era of meager profits for generic drugs is coming, and innovative drugs usher in the golden period of development

Generic drugs dominate the market of China’s public medical institutions.
The increase in the number of visits in public medical institutions in the first half of 2021 has led to an increase in the sales of generic drugs.
Compared with the first half of 2020, the sales of generic drugs have increased by 10.
17%.
337.
5 billion yuan
.

As generic drugs are relatively heavily affected by policies such as the control of medical expenses, the proportion of controlled drugs, and the centralized procurement of the country, the proportion of generic drug sales in the total drug sales has dropped from 68.

The original research drugs are mainly concentrated in the therapeutic fields of anti-tumor, digestion (diabetes), respiratory, nervous system, etc.
, and their products are all innovative therapeutic drugs in the market.
The market demand is large, and they are encouraged by policies.
In recent years, the original research The market position of medicines continues to improve; the sales of original research medicines in the first half of 2021 are about 160 billion yuan, an increase of 8.
35% compared with the first half of 2020, and its sales accounted for 31.
78% of the total drug sales in 2020.
Increased to 32.
0% in the first half of 2021
.

Proportion and growth of terminal original research drugs and generic drugs in China's public medical institutions in 2021H1

Source: Mi Nei.
com, China's public medical institutions terminal competition pattern

Categories that have not met market demand and categories that have increased demand for drugs due to the increase in the number of doctors and treatments have increased significantly

Categories that have not met market demand and categories that have increased demand for drugs due to the increase in the number of doctors and treatments have increased significantly

From the perspective of the distribution of the sales of chemical drugs (including biological drugs) in each treatment category, the sales of acute and severe medications such as anti-tumor immunomodulators and chronic disease medications accounted for a higher proportion of the sales of just-needed medications in public medical institutions
.

Judging from the year-on-year growth in the sales of chemical drugs (including biological drugs) in each treatment category in the first half of 2021, except for the decline in sales of antiparasitic drugs, insecticides and repellents, the remaining 13 treatment categories are all Shows growth of different magnitudes
.

Among them, the treatment categories with a growth rate of more than 10% are mainly derived from two types of fields: the first category is the categories where the number of patients in the market is rising but the existing drugs have not yet met the market needs, such as anti-tumor and immunomodulatory drugs, blood and Antithrombotic drugs in the hematopoietic system drugs; the other category is the categories that have increased the demand for drugs due to the decrease in the impact of the new crown epidemic and the increase in the number of medical institutions (such as respiratory system drugs, sensory system drugs, systemic hormone preparations) And dermatological drugs, etc.

2021H1 China's public medical institutions' terminal chemical drugs (including biological drugs) proportions and growth of each category

Source: Mi Nei.
com, China's public medical institutions terminal competition pattern

From the perspective of the distribution of sales of Chinese patent medicines in each treatment category, compared with the first half of 2020, all of the 13 major categories showed different rates of growth
.
Among them, pediatric drugs, dermatology drugs, musculoskeletal system diseases drugs and ENT drugs have increased by more than 15%
.
The growth rate of the acute and severe medication categories is relatively low, such as medications for urinary system diseases, gynecological medications, and oncology medications
.

Proportion and growth of various types of proprietary Chinese medicines in China's public medical institutions in 2021H1

Source: Mi Nei.
com, China's public medical institutions terminal competition pattern

Data explanation: The terminal competition pattern database of China's public medical institutions on Minai.
com is the exclusive realization of full terminal coverage of public medical institutions in China (including the four major markets of urban public hospitals, county-level public hospitals, urban community centers, and township health centers).
An enlarged version of the drug sales database for continuous monitoring of the entire category of proprietary Chinese medicines
.