Quotations from 265 pharmaceutical companies with 57 large varieties

Today, another batch of large varieties have to cut prices, and it is difficult for pharmaceutical companies

1.

The bargaining involves 57 product regulations and 265 pharmaceutical companies, and most of the product regulations have more than 3 competitors.

According to the previous notice, this round of Guangxi GPO procurement involves a total of 100 varieties and 229 specifications.

For this bargaining, there are several important contents that everyone should pay attention to:

1.

According to requirements, the negotiation time for this batch is April 7, which is tomorrow, and the specific quotation time is as follows:

2.

According to the number of declared companies, different entry methods are adopted.

(1) Bidding.

(2) Bargaining negotiation.

3.

Up to 2 companies can be selected in each group.

(1) During the negotiation, the company re-quotes.

(2) If the negotiating company is one, it will meet the expectations of the negotiation and be eligible to be selected.

(3) If there are two or more negotiating companies, the lowest quotation company that meets the expectations of the negotiations will be eligible for the first proposed selection.

(4) If no company's quotation meets the negotiation expectation, no company will be selected for the specification product.

Judging from the timing of this bargaining notice, the announcement of the notice on the first day of the Qingming holiday shows that the relevant departments attach great importance to this.

2.
Price cuts are inevitable

In recent years, in addition to centralized procurement by the state and local mass procurement, GPO is also a procurement model that has attracted considerable attention.
But no matter what kind of procurement mode, the first thing everyone thinks of is "price reduction.
"

GPO (Group Purchasing Organization) is the current international hospital drug procurement model.
As a third-party intermediary organization for social procurement, GPO organizes upstream manufacturers and distributors to conduct product bidding by integrating the clinical drug needs of multiple hospitals to help save procurement Expenses and provide supply chain management.

As a pioneer in GPO procurement, the price reductions of the first three batches of volume purchases in Shanghai have been very impressive, with an average reduction of 64% for the first batch, 53% for the second batch, and 54% for the third batch.

Shenzhen GPO, which has also received attention, has seen a comprehensive price reduction of 15.
8% for the first batch of drugs, a reduction of more than 40% for some products, and a comprehensive reduction of about 40% for the second batch.

The Guangzhou GPO, which has a super low price limit, has reduced the price of medicines by more than 25% since the platform’s trial operation.
.
.

Let's look at the price reduction of the first batch of GPOs in Guangxi.
The 23 generic drugs have dropped by 41.
56% on average compared with the current purchase prices in Guangxi, and the largest drop of a single drug product is 87.
62%.

Whether it is the Shanghai GPO, Shenzhen GPO, Guangzhou GPO, or the first batch of GPOs in Guangxi, the price reduction of medicines is very obvious.
It can be seen that for tomorrow's bargaining, pharmaceutical companies cannot escape price cuts.

3.
Great changes in the competitive landscape of pharmaceutical companies

With the continuous advancement of national centralized procurement, local volume procurement, and GPO, the competition model and pattern of the generic drug industry will also change.

Taking Shanghai’s first batch of GPO bid-winning species of amoxicillin as an example, there was no record of Ruiyang Pharmaceutical’s amoxicillin in the sample hospital sales data in 2014.
Since 2015, Ruiyang Pharmaceutical’s amoxicillin has increased rapidly, and Ruiyang Pharmaceutical’s volume has increased rapidly in 2017.
Amoxicillin has a market share of 90% in the sample hospitals.

Similarly, take the second batch of aniracetam tablets from Yabao Pharmaceutical as an example.
In 2015, there was no record of Yabao Pharmaceutical's aniracetam tablets in the sales data of the sample hospitals.
From 2016, Yabao Pharmaceutical's aniracetam tablets Piracetam tablets began to enter the market.
By 2017, Yabao Pharmaceutical's aniracetam tablets had completed the replacement of the sample hospital market, and the market accounted for 100%.

It can be seen that the market share of GPO products can be significantly increased, and the products with the leading market share can even monopolize the market, which will have a huge impact on other competing products under the generic name.

Through GPO procurement, imported products have been withdrawn from the market in large areas, and domestic generic drugs are ready to fully seize the market and achieve the purpose of replacing original research with generic drugs.
The final result of competition will lead to a significant reduction in the profitability of generic drug companies.
With the increase in the number of companies that pass the consistency evaluation, the company with the lowest price will eventually win the bid.
And for pharmaceutical companies, this is an "all-or-nothing" game.
If the price is not lowered, it means losing most of the market.
Therefore, no matter what type of drug procurement, the bidding process will be fiercely competitive, and the final price will be won.
It may drop significantly.

With the continuous improvement of large-scale procurement in the pharmaceutical industry and the continuous improvement of local GPO procurement mechanisms, the purchase price of pharmaceuticals continues to decrease, and the pharmaceutical market will usher in a major reshuffle of the industry.
The transition from the previous procurement method based on hospitals or medical consortiums to municipal, provincial, and national procurement, the new situation of normalized procurement with volume has become unstoppable.

With volume procurement and GPO, market competition will become more intense, profits will be greatly compressed, and the key competitiveness of pharmaceutical companies will change from sales promotion capabilities to overall cost advantages.

Attachment: The sixth batch of Guangxi Pharmaceutical Group procurement (second batch) varieties and list of participating companies