Opportunities in these fields have come after the collection

Under the volume purchase, the traditional drug sales control process gradually fails

01 Focusing on the front line to expand

Collective procurement has been steadily advancing in batches and rounds.
From chemical medicines to medical devices to proprietary Chinese medicines, no one will be spared
.

The once so-called "troublemaker is better than drug seller" has become a joke, and the industry has begun to nirvana with meager profits
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The trend of low-level competition will be terminated, which is also in line with the global development trend of the pharmaceutical industry-gradually concentrated, and small and medium-sized enterprises without innovative capabilities will be eliminated
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So "the eight immortals cross the sea and each show their magical powers", the innovation and entrepreneurship of various medical professionals began
.

First look at the progress of centralized procurement since 2018
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In November 2018, the first batch of centralized drug procurement pilots was launched, and the "4+7" drug centralized procurement pilot was implemented.
In the end, 25 varieties were selected and 6 were abandoned, with an average decrease of 52% and a maximum decrease of 96%
.

In January 2020, the collection of the second batch of medicines was expanded from 25 varieties to 33, and expanded to the whole country.
The final average decline was 53%, and the decline of individual varieties was close to 90%
.

In September 2020, the third batch of medicines was collected and purchased, involving 52 varieties and 86 product specifications, with an average price reduction of more than 70%, and a number of varieties showed a reduction of more than 90%
.

The price of individual drugs fell to 1 cent.
Sildenafil, which used to be 80 yuan a pill, is now 2 yuan a pill
.

On July 15-16, 2020, the National Medical Insurance Administration held a symposium to listen to expert opinions and suggestions on the centralized procurement of biological products and proprietary Chinese medicines
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On November 5, 2020, the centralized procurement of coronary stents landed, announcing the arrival of the era of centralized procurement of medical consumables
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This time, the price of the heart stent has been reduced from an average of 13,000 to around 700.
The cost of a few stents can save patients tens of thousands of yuan.
Many patients who were previously hesitant to install the stent can also install it with confidence
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According to the latest policy documents, centralized procurement will continue to be implemented solidly.
By the end of 2022, 300 nationally-produced varieties will be included; by the end of 2025, more than 500 provincial and nationally-produced varieties will be included
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02 Reform promotes change and innovation

Centralized procurement can be seen as part of the supply-side reform of the pharmaceutical industry, which will promote change and innovation
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For the medical insurance bureau, it is "quantity for price", while for pharmaceutical companies it is "price for volume".
This part of the volume is commonly known as small profits but quick turnover
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These companies that can win the bid often have strong production management capabilities, and such things will happen, not to mention most companies that do not have the strength to participate in this game
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Twenty years ago, I wanted to use GMP and other standardized management to greatly reduce the uncompetitive and small-capable pharmaceutical companies’ goal that was not fulfilled.
Today, we continue to promote this process through centralized procurement and reduce corporate profits.
Ten years ago, the intensity will be even greater
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Policies such as the two-invoice system and quantity procurement have the effect of increasing the concentration of the pharmaceutical circulation industry.
In the process of increasing the concentration of the industry, a large number of small and medium-sized pharmaceutical manufacturers and commercial enterprises will face the pressure of exit
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Then, after more than 20 years of development and accumulation, what about companies that don’t want to lose out in this new industry rule and leave the market? There are two ways
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One is to try to concentrate strengths, consolidate the main business, strengthen management, highlight cost management, do a good job in corporate profits, reduce costs and increase efficiency
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03 Innovative development in subdivisions under tremendous changes

Although the country’s economic downward pressure has been relatively high due to the tremendous changes in the internal and external environments in the past two years, the overall upward trend of the health industry has not changed much, and people’s needs for health cannot be changed
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This can also be learned from Japan's development experience many years ago
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From 1992 to 2012, in the "lost 20 years" of the Japanese economy, the pharmaceutical industry index still bucked the trend and rose by 92%, outperforming the Nikkei in 14 years
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There are dangers and organics in the crisis, and there are opportunities to grasp the general trend of the industry
.
For example, the innovative pharmaceutical industry chain of innovative drugs, innovative devices, and pharmaceutical outsourcing is not only unaffected by centralized procurement, but also beneficial
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China's overall dependence on medicines and medical devices is about 20% and 30%, respectively
.
Certain sub-industries, such as the dental industry, are more dependent on foreign sources
.
Therefore, only by improving the technical level of domestic pharmaceutical companies, being brave to innovate, and promoting domestic substitution of imports, can China's pharmaceutical industry truly prosper
.
This is also the reason why the country has stricter restrictions on generic drugs in its policies
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In addition, the centralized procurement of private specialty medicine, medical beauty, and specialty raw materials is almost unaffected
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Therefore, in the context of the tightening of medical policies, the big health field and the medical equipment sales and service industries have also ushered in some new opportunities
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Many people in the pharmaceutical industry have already begun their attempts to transform.
Some of my friends have entered the field of cosmeceuticals and insurance.
Of course, this insurance field has not completely left medicine, but innovative medicine + insurance
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They even use their own specialties to do genetic testing, Chinese medicine education, medical cosmetology, special medical food, hospital software services, marketing management consulting training, and other related subdivision service areas
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The industry has undergone drastic changes, and some pains are inevitable.
However, the sunshine is always after wind and rain, and only after some experience can we know how to cherish it.
Our medical professionals will definitely be stronger and better after experiencing persistence and perseverance
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