Proprietary Chinese medicines are blooming everywhere!

Recently, 19 provinces (cities, districts) led by Hubei provinces (cities, districts) Procurement Alliance of Chinese Patent Medicines officially released specific recruitment documents
.
According to statistics, the Hubei Proprietary Chinese Medicines Alliance will divide 76 products into 17 product groups according to the components and the route of administration, covering cardiovascular and cerebrovascular disease drugs, urinary system disease drugs, digestive system disease drugs, and skeletal muscle system.
There are six therapeutic areas for disease medication, tumor disease medication, and respiratory disease medication
.
In addition to the varieties included in the collection, the recruitment rules have always been the focus of the industry
.
It is reported that the centralized procurement of Hubei Chinese Patent Medicine Alliance mainly adopted the comprehensive model of "AB grouping + double envelope + quantity procurement" in the recruitment rules
.
As long as it meets the declared enterprises whose amount accounted for 10% or more of the total amount of the same product group, or sorts the amount from high to low, the top 3 applicants will automatically enter the A competition unit, and the remaining declared enterprises Enter the B competition unit
.
On the whole, the price drop of the product will still be a key factor in determining whether Hubei Union is selected in the centralized procurement
.
However, for the non-selected companies, Hubei Province also proposed that the quotation representative product with the lowest average daily treatment cost in the same group and the technical evaluation index has no demerit points can be eligible for the proposed selection
.
The industry believes that this supplementary condition can prevent possible errors caused by the determination of the results based on the reduction calculation
.
It is worth noting that in addition to Hubei Province, Guangdong Province also issued the "Guangdong Union Qingkailing and other 58 pharmaceutical groups purchasing documents (draft for comments)" in September 2021
.
In addition, places such as Zhejiang Jinhua, Qinghai, Henan Puyang and other places have carried out trial purchases of proprietary Chinese medicines
.
Although it is not an alliance procurement, the centralized procurement objects are mainly some Chinese patent medicines with high demand and high amount; the centralized procurement effect is better, and the bid-winning Chinese patent medicines generally have a large decline
.
In this regard, the industry generally believes that, with the centralized procurement of proprietary Chinese medicines in the inter-provincial alliance and the continuous development of the centralized procurement of proprietary Chinese medicines in various localities, it will have a significant impact on the national proprietary Chinese medicine market, and a new round of reshuffle will be on the line
.
In general, my country’s national centralized procurement of proprietary Chinese medicines and the inter-provincial alliance’s centralized procurement goal is to win the bid for the more "cost-effective" proprietary Chinese medicines.

.
Therefore, the analysis believes that for the bid-winning pharmaceutical companies, the policy of centralized procurement of Chinese patent medicines will still be a favorable policy.
The reason is that through price competition, the market can be reshuffled and those Chinese patent medicine companies with higher costs and average quality and curative effects can be eliminated
.
Although the price will drop significantly, the expansion of the market scale will also make up for a certain loss of profit
.
However, it should be noted that this may also form an oligopoly market structure, that is, several large companies divide the market, thereby forming a stable market supply and price
.
In this context, if small and medium-sized enterprises want to gain more competitiveness in the market and not be easily eliminated, they need to make a long-term strategic plan.
They must ensure product quality and efficacy under the premise of increasing the layout of R&D and clinical trials.
At the same time, control product costs; in addition, measures such as improving planting techniques, establishing diversified Chinese medicinal materials planting bases, and realizing cold storage of Chinese medicinal materials to reduce the fluctuations in the quality and output of Chinese medicinal materials caused by natural disasters of Chinese medicinal materials
.