Price reduction of a batch of drugs: up to 90%

A large number of varieties, take the initiative to reduce prices

01 Documents issued by multiple provinces, enterprises independently apply for price reductions

On August 16, the Shaanxi Provincial Public Resources Trading Center issued the "Notice on the Dynamic Adjustment of Drug Sunshine Online Products and Lower Online Prices"

The notice shows that products that have lowered their online prices in accordance with the requirements of normalized adjustments will be announced, and the adjusted prices will be implemented immediately

In fact, in recent times, many provinces have intensively issued documents to adjust drug prices

Liaoning

On August 16, the Centralized Procurement Network of Medicines and Medical Consumables in Liaoning Province issued the "Notice on the Results of the Active Price Reduction of 318 Drugs including Cefadroxil Tablets"

According to the notice, 318 pharmaceutical products bid by Qingyuan Huaneng Pharmaceutical Co.

Although the decline of most drugs this time is not very obvious, Liaoning Province has issued several documents in recent times to reduce drug prices.

Also in August, Sichuan, Heilongjiang, Yunnan, and Guangzhou issued a document to reduce the price of medicines

Sichuan

On August 11, the Sichuan Pharmaceutical Equipment Bidding and Purchasing Service Center issued a public notice on companies applying for price reductions (Chuan Yao Zhao [2021] No.

According to the drug price reduction application submitted by the enterprise, it is proposed to lower the online limit/winning price of some drugs in the Sichuan Province centralized drug procurement trading platform

Heilongjiang

On August 9, Heilongjiang Province Drug Centralized Procurement Network issued the "Notice on Price Reduction of Certain Drugs (20210809)"

The notice shows that Beijing Ruiye Pharmaceutical Co.

It can be seen from part of the drug price reduction information table that a total of 7 drugs have been actively reduced in price.

Yunnan

On August 5, the Yunnan Provincial Pharmaceutical Centralized Procurement Platform issued a public notice (20210805) on companies applying for price reductions

The publicity shows that the reduced-price drugs include basic drugs and non-basic drugs

Guangzhou

On August 16, Guangzhou Public Resources Trading Center issued a notice on the voluntary price reduction of some drugs (20210816)

According to the "Notice of the Guangzhou Municipal Human Resources and Social Security Bureau and other eight departments on the issuance of the Trial Measures for the Procurement of Pharmaceutical Groups in Guangzhou Medical Institutions" (Sui Ren She Gui Zi [2018] No.

02 Significant decline, the price linkage between provinces and cities may come in the future

In the context of the price cuts of more than thousands of medicines, some medicines have dropped significantly
.
Taking the Chinese medicines listed in the online price announcement of Shaanxi Province as an example, a total of 507 medicines will undergo price adjustments
.
Shandong Fangming Pharmaceutical Group Co.
, Ltd.
's ropivacaine hydrochloride injection dropped from 59.
6 yuan/bottle (specification: 10ml:75mg) to 28 yuan/bottle (specification: 10ml:75mg), a decrease of about 53%; Hainan The omeprazole sodium for injection of Whipson Pharmaceutical Biotechnology Co.
, Ltd.
decreased from 20.
1 yuan/box (specification: 40mg) to 2.
01 yuan/box (specification: 40mg), a decrease of 90%
.

According to data from Menet.
com, the sales of omeprazole sodium for injection in China's urban public hospitals, county-level public hospitals, urban community centers, and township health centers (Chinese public medical institutions) will drop to 5 billion in 2020 due to the epidemic.
Yuan level, but still occupy the top 1 throne of injection products for peptic ulcer treatment
.

Cyberlane's search on the official website of the State Food and Drug Administration found that there were 127 pieces of information about omeprazole sodium for injection, which shows that there are so many pharmaceutical companies in its market
.

Jia Xiaoqing, purchasing manager of the retail department of Jiangsu Pharmaceutical Co.
, Ltd.
, told Cybernet that the reason for the large decline is mostly due to full competition and inflated prices
.
Whether to trade for the market at a low price or lose the market at a high price, pharmaceutical companies need to consider which varieties have core competitiveness.
Due to the linkage of provinces and cities, price follow-up may become inevitable.
If you still want to sell in the local market after losing the bid, It is necessary to cut prices drastically.
Instead of losing bids and giving profits, it is better to take the initiative to cut prices and take a gamble.
In fact, many companies have won the bet.
After all, low-margin survival is also an acceptable choice for some pharmaceutical companies
.

He also said, "The price cuts of medicines will continue.
Since the first round of 4+7, Shandong, Sichuan, Fujian, Hebei and other provinces have clearly stated that they will carry out provincial and municipal linkages and price follow-up
.
Big will also become the new normal, and linkages between provinces and cities and price follow-up will become inevitable
.
"

In the context of intensively issuing documents in many provinces to notify the price of medicines, the pharmaceutical market has set off a wave of "price cuts"
.
Among them, many large pharmaceutical companies have taken the initiative to cut prices.
According to the "Notice on the Implementation of 318 Active Price Reduction Results of Cefadroxil Tablets" issued by Liaoning Province, it can be seen that Hengrui Pharmaceuticals, Harbin Pharmaceutical Group, Shijiazhuang No.
4 Pharmaceuticals, North China Pharmaceuticals, etc.
Well-known pharmaceutical companies have taken the initiative to cut prices, and North China Pharmaceutical has cut prices the most, about 18
.
The average drop was about 6.
4%, and the highest drop was about 35.
2%
.

In this regard, Jia Xiaoqing believes that the high probability of pharmaceutical companies' independent price reduction is related to the current market access pattern.
Winning bids through independent price reductions can not only expand market share, but also block the "disorderly" companies that "barefoot is not afraid of wearing shoes".
"Competition
.
Whether it is through price cuts to expand share to reduce costs or through price cuts to maintain market position, profits and share will still exist
.
In the future, there will be more large companies through their own price cuts to maintain market share.
It can be seen that the market for losing bids is unbearable for large companies, regardless of whether it is the volume or the national talk model
.