The third batch of collections will come to an end, and the west is not the market or will be reconstructed accordingly

The results of the third batch of selection have been announced for more than half a month, the collection of a total of 189 enterprises to participate in the selection of 125 enterprises, 191 products to be selected, the average price reduction of the products to be selected 53%, the highest reduction of 95%. Among them, from the results of the bid, Qilu became one of the big winners, the proposed winning bid of 8 varieties, the largest number, followed by Yangzijiang and Howson Pharmaceuticals, respectively, 7 and 5, Haizheng, Hengrui and Colum Pharmaceuticals are 4, the competition between pharmaceutical companies than the first two batches more intense.Among them, Qilu Pharmaceutical'sacid sidna tablets at a price of 2.08 yuan per tablet, a decrease of 92%, according to the "National Drug Centralized Procurement Document" (purchase document number: GY-YD2020-1) In 12.1 "units can be compared price≤ with the lowest varieties" units of 1.8 times the price of 1.8 times" to become the only exclusive collection of winning varieties, will get 50% of the national procurement volume. According to industry estimates, in October may enter the full implementation phase.At present, Baiyunshan, the largest supplier of the variety in China, responded to the bid for Jingo, Baiyunshan official said, "the product is mainly sold in the chain of pharmacies and other terminals, the previous year's sales in public hospitals accounted for only 0.01% of the annual sales." Therefore, it is not expected that the loss of tender will have a significant impact on the operation of the company. In the future, the company will actively promote the product in other channels of sales promotion and market development efforts to reduce the impact of the failure to bid. ”。

Qilusidine non-sitting" medical terminal market, the original research drug is very injuredBarefoot is not afraid to wear shoes, according to the provisions of the winning bid document, Qilu in the next year exclusive access to 50% of the hospital terminal market, according to the relevant documents, this low-cost bid its future strategic significance is far greater than its practical economic significance.According to the "National Drug Centralized Procurement Results Table (GY-YD2020-1)" shows that Qilu Pharmaceuticals from the theoretical point of view of the next year in the medical institutions to sell less than 5 million pieces of Xidi Nafei, less than 10% of Baiyunshan Jingo 2019 sales, according to the selected purchase price, its market sales of less than 20 million yuan, but its actual market will be much larger than this, and its impact will be deeper.According to the collection of relevant documents specifically, in the next year the hospital terminal collection of 25mg, 50mg and 100mg a total of 917.24 million pieces, of which 25mg of 177.7 70,000 tablets, 50mg for 5.1845 million pieces, 100mg for 2.2092 million tablets, corresponding to the exclusive winning bid to obtain 50% of the base of procurement to calculate, In the coming year, Qilu will be able to obtain 989,400 tablets, 2.5923 million tablets and 1.1046 million tablets, respectively, combined with Qilu pharmaceutical production specifications of 25mg, 50mg and 100mg single-film selection price of 2.082 yuan, 3.609 yuan and 6.33 yuan, respectively, the corresponding market sales of 18.199 million yuan.However, in practice, it can obtain market share far more than this, because of the huge drop in the price of medical institutions, the original purchase of drugs in pharmacies will be the fixed patients will be directed to medical institutions, medical institutions are likely to carry out the actual purchase volume is much higher than the original plan.According to the Results Table of the National Drug Centralized Procurement (GY-YD2020-1), "On the basis of giving priority to the use of selected drugs in the centralized procurement of this drug, the remaining dosing may be purchased in moderable quantities of other drugs at the same price in accordance with the relevant provisions of the local centralized procurement management of drugs." "On terms, it looks like the rest of the manufacturers still have a chance to get a piece of the remaining 50 per cent of the market, but that's not the case." According to the end-market data of Milnet medical institutions, Pfizer, a non-original research manufacturer, has a basic monopoly on the market, with sales of nearly 120 million yuan and a market share of more than 96% in 2019. Because Qilu's price advantage is much greater than the rest of the manufacturers, so the rest of the manufacturers, especially the original manufacturers are also difficult to significantly reduce prices to destroy its entire price system.

is it that Qilu has slashed the price?Qilu as the latest approved enterprises in the market, in the face of the old drug company Baiyunshan Jingo for many years to cultivate the market, if the price is close to the market competition, in the short term will certainly be difficult to open the market quickly.According to the current retail market manufacturers in the general competitive landscape, in 2019 in China's urban retail pharmacy terminal sales of more than 2.3 billion yuan, the current 2019 non-market share of the top three enterprises are Baiyunshan Jingo 48.1%, Pfizer Aico 46.9%, Abang Epson 3.7%, and later some listed Changshan Pharmaceuticals, Chengdu Geo basic no market.As a result, Qilu Pharmaceuticals is expected to quickly open up market visibility and share the retail market with price advantage after winning the bid at a low price. There are many places to make the pharmacy into the collection of sound, and the voice is getting higher and higher, the future of medical terminal channels and retail terminal linkage is difficult to avoid.In Guangdong Province, for example, according to data released by the Guangdong Drug Trading Center on the non-pre-procurement volume of the third batch of Guocexidana, the reported 25mg dose of the hospital was 2000 tablets, and the reported amount of the pharmacy was 1522926 tablets, 761 times that of the hospital; Hospitals reported 19960 tablets, pharmacies reported 3708630 tablets, 185 times the hospital's, 100 mg dose of hospitals reported 83,325 tablets, pharmacies reported 959475, 11 times the hospital's.According to the contract agreement for the purchase and sale of quantity, the fixed-point retail pharmacy of medical insurance should complete the contract amount during the contract period. This also indicates that there will be 28,000 pharmacies in Guangdong selling Chilu-produced Sidana non-, and that the contract usage will be completed during the contract period. As a result, Qilu's low-cost exclusive selection can also quickly open up the pharmacy market.

you make money in the end?   When the results of the previous two volume purchases were announced, many media thought that some of the drugs with huge declines were "losing money and drinking", winning the market but losing money, Qilu would be so? Let's assume that the 50mg size of Sidna, which is sold in the mainstream of the market, is an example of a bill.   In China's pharmaceutical market industry rankings, Qilu Pharmaceuticals and Baiyunshan Pharmaceuticals are the higher ranked enterprises, assuming that the two in the variety of gross margin level, marketing management capacity is not much different.   According to data disclosed in Baiyunshan's annual report, sales in 2019 were 61.76 million tablets and sales revenue was 753 million yuan, due to the sale of products in 25mg, 50mg and 100mg sizes, with 50mg as the main, 25mg small sizes and 10 0mg large specification ratio hedging, assuming that here are 50mg, then the average factory price of a single piece is about 12.19 yuan, then its corresponding production cost is 12.19 x (1-90.65%) ≈1.14 yuan.   Assuming that the production cost of Qilu Pharmaceuticals is corresponding at 1.14 yuan, the gross margin of 50 mg Sidinana is 3.609 yuan per tablet, and its gross margin is 68.62 percent, even at a more conservative gross margin of 60 percent, which is more than 2.1 yuan per piece.   And through the volume of drugs purchased basically do not need more sales cost-sharing, excluding a small amount of management costs and tax costs of enterprises is a net profit. It can be seen that Qilu this low-cost exclusive bid WestLand that is not "lose money to earn a drink" action.

does this have on the non-variety market in The West?   At present, the market share and share of the top two enterprises for Baiyunshan's Jingo and the original research drug Pfizer's Wan Aico.   Although Baiyunshan officials said the impact is small, in the end the impact is small, can only be verified by the future market. However, in the future in the various terminals of the market price reduction is inevitable.   Siddana is not a prescription drug, in theory should generally have a larger market share in the medical institution terminal, but its sales in the medical institution terminal market is less than one-tenth of the size of the retail terminal.   For the end-market of medical institutions, due to its ultra-low price advantage, its market sales volume is expected to expand rapidly in the future, narrowing the size gap between it and the pharmacy market.   For the general pharmacy terminal, this kind of product is the pharmacy profit higher sales of better merchandise category, will not easily give up this profit, the future price exchange is more likely. Such products and some low-cost slow disease products to "guide" the purpose of the user is different, such products brand or trademark has a certain degree of partition, but earlier into the Chinese market of the original research brand Wan Aico and the domestic first imitation enterprises Jingo has accumulated a large number of stable customer base.   For the production enterprises of this variety in the market, the future overall price level down is inevitable. Specifically, relative to the actual market price of Wan Aico Qilu Pharmaceuticals Xidana non-selected price reduction of more than 90%, relative to Baiyunshan's Jingo is about 85%.   At present, more and more retail pharmacies are participating in the national collection, so the future of the product in the retail channels to reduce prices or price wars are inevitable. Therefore, Qilu Pharmaceuticals' Sidna non-prying of the entire market price reconstruction of such products is inevitable.   As a leading enterprise in the market, Baiyunshan, Jingo has become its Big South pharmaceutical sector's third largest sales revenue products, after the enterprise's cephalosporine and cephalosporine , but its gross profit level is much higher than the former two, called it the most profitable varieties of enterprises is not too much.   However, with this "service", as the third batch of volume procurement enters the implementation phase, the price level drops, the gross margin of Siddana non-in the future or ushered in challenges. (Cypress Blue)