Hypertension drugs cost 7 cents a tablet. National level purchase with quantity promotes price reduction
Recently, the results of the bid opening for the expansion of centralized drug procurement organized by the state were announced. The price reduction of the selected drugs was greater than that of last year. Among them, the price of amlodipine besylate tablets from Chongqing Yaoyou decreased significantly to 0.07 yuan / tablet (5mg). What changes will this state-level volume procurement bring to the whole pharmaceutical industry?
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Popular science: what is' purchasing with quantity '?
When bidding for centralized drug procurement, the procurement quantity shall be clear, and the enterprise shall quote for the specific drug quantity.
Compared with centralized procurement without volume, volume can give pharmaceutical enterprises clear sales commitments and expectations, facilitate enterprises to arrange production and sales and control costs.
In short, volume procurement can be understood as large-scale 'group purchase'. The government defines the procurement volume, and the low-cost bidder wins the bid.
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How will volume procurement affect the drug market?
In the past, the price of drugs was expensive. Where was it? In the pharmaceutical industry, there is a hidden rule called "sales with gold". Generally speaking, it means sales commission. If a pharmaceutical factory wants to sell drugs to the hospital, it must give the hospital some commission more or less. Many pharmaceutical companies sell drugs mainly not by product quality, but by public relations.
For enterprises, they exchange price for quantity, and exchange more favorable prices for more quantity. Enterprise quotation is completely voluntary. Enterprises have full autonomy and choice. Changing the price by quantity can significantly reduce the drug price, effectively reduce the drug cost burden of patients, and also help to reduce the cross regional market promotion cost of enterprises.
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Ding Yilei, deputy director of the medical price and bidding procurement department of the State Medical Security Administration: in economics, it has economies of scale, large quantity and reduced the production cost of single products. In the past, there were some grey spaces in the link of drugs entering the hospital at the terminal, or "sales with gold". Because this is the purchase and supply with quantity, enterprises do not need to ensure sales in the grey space, so this is also the source of price reduction space.
For example, compared with the lowest purchase price of the same kind of drugs in the alliance region in 2018, the winning price of the pilot expansion centralized procurement decreased by an average of 59%. Compared with the price level selected in the '4 + 7' pilot, the average decrease is 25%.
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Can the quality of drugs be guaranteed?
Wu Dan, President of Chongqing Yaoyou Pharmaceutical Co., Ltd.: Although the bid price has decreased significantly, it has also brought sales, which is in line with the economic principle of small profit and quick turnover. All products are produced under the same quality system, and different quality standards will not be set because of different product profits.
Experts said that although the price reduction of the above drugs is large, these quotations are the independent behavior of enterprises, which fully reflects the decisive role of the market in price formation. Multiple enterprises for the same product have quoted similar quotations, which also shows that enterprises have a certain consensus on the market value of a product.
Ying Yazhen, vice president of the National Institute of medical security of Capital Medical University: the quality of drugs is at the front end, and there are relevant departments to control and supervise the production license. Then, when purchasing medical insurance, it also takes consistency evaluation as the prerequisite for shortlisting. Such a procurement model is actually a fair competition in the sun, which is far better than the underground grey operation.
Industry insiders said that the volume purchase trades the market for price, reduces the unit production cost of drugs through the scale effect, and liberates drug manufacturers from the disorderly competition of "gold sales", which is conducive to guiding their efforts to transfer to the correct track of improving drug quality and promoting drug R & D, which is of great and far-reaching significance to the healthy development of China's pharmaceutical industry.
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Institutional view: policy driven accelerated liquidation of the pharmaceutical industry
What impact will the implementation of volume procurement have on the pharmaceutical sector? Various institutions also expressed their own views & DARR;
Dongguan Securities
Medical insurance cost control is the main theme, and volume procurement has a far-reaching impact. It is an inevitable trend for volume procurement to be implemented nationwide in the future.
Guohai Securities
After the implementation of volume procurement, the competitive element of the pharmaceutical industry will change from the ability of sales promotion to the ability of overall cost advantage, and the competition will be more intense.