The 14-province alliance's centralized procurement and regeneration change: 8 billion large varieties have been eliminated!

On November 23, the Henan Provincial Medical Insurance Bureau issued the "Procurement Announcement (3) of the Pharmaceutical Alliance of the 14 Provinces (Cities, Districts, and Corps) of the Henan, Jin, Mongolia, Jiangxi, Guangdong, Gui Yu, Yunnan, Shaan, Qing, and Ningxin Corps
.
" With the accession of Shanxi Province on the 13th of this month, the Henan Union officially transformed into the 14 Inter-provincial Drug Purchasing Union
.
According to the data and the registration of enterprises, Henan Union finally decided to carry out centralized procurement of 38 drugs including atenolol
.
In contrast to the procurement catalog published earlier this month, six clinical large varieties of esmolol, compound apocynum, clonidine (oral regular-release dosage form), spironolactone, nifedipine (I) and indapamide were eliminated
.
The catalog covers eight major areas with over 100 million varieties.
According to the statistics of "Pharmaceutical Economics" reporters, this Henan Union procurement catalog covers cardiovascular system drugs, hormones and drugs that affect endocrine, anesthetics, urinary system drugs, nervous system drugs, and digestive system drugs.
The eight therapeutic areas of blood system medications cover four major dosage forms: oral regular-release dosage forms, sustained-release and controlled-release dosage forms, injections, and patches
.
Among them, the number of drugs used for the cardiovascular system is second to none, accounting for more than 60% (according to the common name), followed by hormones, endocrine drugs and urinary system drugs
.
As a supplement to and exploration of national centralized procurement, Henan Union has also included a number of clinically commonly used varieties
.
For example, the calcium channel blocker diltiazem tablets.
According to data from Minai.
com, its sales in China's public medical institutions in 2019 exceeded 260 million yuan
.
Among them, Tanabe Mitsubishi Pharmaceuticals accounted for 81.
46% of the market share, and Shanghai Xinyi Vientiane Pharmaceuticals accounted for 9.
72%
.
In addition, the injectable formulations of furosemide, pentoxifylline, nicardipine, nimodipine and sodium nitroprusside will also have sales of more than 100 million yuan at the end of China's public medical institutions in 2020
.
It is worth noting that the compound preparation metformin and glipizide also appeared in this procurement catalog.
This variety has just achieved sales of 105 million yuan and a market growth rate of 78.
28%.
It is newly listed in the first half of 2021.
TOP20 varieties of blood glucose drugs
.
According to statistics from Meinenet, as of the end of October, there are 7 non-insulin hypoglycemic drugs that have not been included in the national procurement and have more than 2 companies that have been reviewed, including pioglitazone-metformin tablets, linagliptin tablets, and sitagliptin phosphate tablets.
, Pioglitazone hydrochloride tablets and sitagliptin and metformin tablets (II) are on this list
.
At the time when the bid for the national procurement of insulin is about to be opened, it is due to the Henan Union to start the centralized procurement of non-insulin hypoglycemic drugs that have not yet met the requirements for national procurement
.
However, the sudden "absence" of clinically commonly used varieties such as nifedipine (I), esmolol, and indapamide also left a trace of regret for this alliance
.
Taking nifedipine as an example, Meinenet data shows that in 2020, the total sales of nifedipine tablets in China's public medical institutions and Chinese urban physical pharmacies will exceed 8 billion yuan
.
In recent years, nifedipine has continued to increase its volume in public medical institutions in China, with a year-on-year growth of 25.
48% in the first half of 2021
.
Nifedipine sustained-release tablets (Ⅰ) is one of the main products of this variety, involving 16 pharmaceutical companies such as Onglikang, Yabao Pharmaceutical, and Guizhou Shengjitang.
It is related to the qualification of the product to obtain the review, including the two previous Dezhou German medicines that have been reviewed, or they are making way for the future of the country
.
Improving the accuracy of hospital reporting and strictly controlling the participation of untrustworthy pharmaceutical companies was the day after Henan announced the final centralized procurement catalog.
On November 24, Shanxi and Ningxia provinces (districts) successively issued the "Regarding the Development of Fourteen Provinces (Districts, City, Corps) Pharmaceutical Union’s Notice on Filling in and Reporting Data for Collectively Procured Types of Drugs", officially launched the reporting of medical institutions in various regions
.
It is worth noting that Ningxia pointed out in the precautions that medical institutions should truthfully report the historical procurement volume and procurement demand.
If the increase or decrease of the procurement demand exceeds or is less than 30% of the historical procurement, the medical institution should fill in the system.
Description
.
From the perspective of the industry, this move may improve the accuracy of data reporting by medical institutions
.
However, what needs to be brought to the attention of pharmaceutical companies is that in the previous announcement, Henan made it clear in the qualification requirements of the applicant company that the applicant company that does not have clinically commonly used specifications shall not participate in this centralized procurement.

.
In addition, Henan also proposed that according to the medical price and recruitment credit evaluation system, the applying company is included in the current "National Medical Price and Recruitment Untrustworthy Enterprise Risk Warning List", or is rated as "particularly serious" untrustworthy in various provinces.
, Shall not participate in this centralized procurement; if the province (autonomous region, city, corps) is assessed as a "serious" untrustworthy level, the related varieties shall not participate in this centralized procurement
.
This time, the Henan Union has attracted nearly half of the provinces across the country to participate, and the market size involved is not small.
The number of participating provinces is second only to the current 19 provinces (regions) Procurement Alliance of Chinese Patent Medicines led by Hubei, covering the range of centralized procurement of 38 kinds of medicines.
It also ranks in the forefront of the inter-provincial procurement alliance that has been launched
.
Under the logic of "centralized sourcing must lower prices", the reduction in the overall sales scale of products is an inevitable result, but subdivided into the corporate competition pattern is conducive to "barefoot" companies to quickly seize the market
.
Although the specific recruitment and procurement rules will be released later, fierce price competition is inevitable
.
In fact, since the second half of 2020, more and more provinces (cities, districts) have successively formed inter-provincial alliances for centralized procurement
.
According to the incomplete statistics of Yilian's recruitment and procurement, nearly 90% of the provinces (cities, districts) in the country have participated in one or more inter-provincial procurement alliances, which has become one of the important methods of centralized procurement
.
Up to now, there are 17 inter-provincial alliances that have carried out mass procurement, among which Guangdong takes the lead with 4; followed by Chongqing with 3
.
In October of this year, the National Health Commission issued the "Implementation Opinions of the State Council’s Leading Group for Deepening the Reform of the Medical and Health System on Deepening the Promotion of the Experience of Sanming City, Fujian Province and Deepening the Reform of the Medical and Health System", encouraging the establishment of provincial units or the establishment of inter-provincial alliances, and the national organization In addition to the centralized procurement of pharmaceuticals and consumables with large quantities and high purchase amounts, centralized procurement of pharmaceuticals and consumables shall be implemented, and at least one centralized procurement of pharmaceuticals and consumables shall be carried out or participated in each year
.
At the end of the "14th Five-Year Plan" period, each province’s national and provincial organizations will have more than 500 generic names for centralized procurement of drugs.
With the help of the new policy, more inter-provincial alliances will inevitably emerge in the future.
Provinces (cities, districts) and pharmaceutical companies involved will also participate more actively
.
Henan Union Procurement Catalog