Chinese medicine companies "hurry up for exams": group competitions, quota purchases!

On Christmas Eve just past, many Chinese patent medicine companies and related alliances unexpectedly received special "gifts": December 24 was the deadline for the announcement of the results of the procurement of the 19 provincial Chinese patent medicine inter-provincial alliances led by Hubei.
It is reported that in a hurry Before the time limit, some companies filed complaints on the results of the proposed selection.
The common point of the complaints is that the price difference between the products selected in Group A and Group B is too large
.
On the same day, the long-discussed Guangdong Union Procurement Documents and Procurement Lists for Proprietary Chinese Medicines, as well as reports from medical institutions and retail pharmacies, were officially released
.
Compared with the draft for comments, there are new changes in the number of provinces in the alliance, the number of centrally sourced products, the composition of exclusive varieties, and the groupings.
The regional alliance of proprietary Chinese medicines has a large amount of procurement affecting the sensitive nerves of the supply chain
.
At the end of the year, another surprise came from the Chinese medicine sector once again leading the tide
.
Led by Longshen Rongfa and Longjin Pharmaceutical, the compound Danshen Tablets, which has just been included in the Guangdong Union’s procurement list, has a cumulative increase of 91.
53% last week
.
Tongrentang, Taiji Group, Renhe Pharmaceutical, Zhongxin Pharmaceutical, etc.
rose not badly
.
According to incomplete statistics, 13 listed Chinese medicine companies will announce equity incentive plans in 2021, and relevant companies and the capital market have increased confidence in the Chinese medicine sector
.
In 2022, the differentiation and evolution of the Chinese patent medicine industry will become more apparent, and a new road to rushing to the exam will begin quietly
.
Pattern: price difference "candidates", which is better for AB unit? Judging from the rules of the Hubei Union and the Guangdong Union, the top-ranked varieties of Chinese patent medicines in the sales of public medical institutions are mostly included in the centralized procurement category
.
According to data from Mi Nei.
com, nearly half of the TOP20 varieties of oral Chinese patent medicines for respiratory diseases in public hospitals are included in the centralized procurement
.
Among the cardio-cerebral vascular products with sales exceeding 1 billion in 2020 (excluding injections), 5 products will be included in centralized procurement; 2 of the top 5 products in the gynecological field in terms of sales will be included
.
Large varieties of clinical Chinese medicines will gradually enter the alliance's collection
.
In the first quarter of 2021, the TOP10 products of proprietary Chinese medicines in public hospitals in key cities.
The two alliances that are the first to test both adopt the form of A and B competition units for centralized procurement
.
The Hubei Union Centralized Procurement, which has opened bids, was selected for 111 products from 97 companies, with a selection rate of 62%, and the selected price dropped by an average of 42%.
The overall price cut was slightly milder than that of the centralized procurement of chemical drugs
.
And there are products that rise instead of falling.
For example, the price of 10ml Danxiang injections has risen by 1737.
5%
.
The reason is that proprietary Chinese medicines are affected by many factors, but the industry's feedback is more concentrated on prices
.
According to the rules of the Hubei Union, the top 70% of the companies (Group A) in the decline rate are directly eligible for the proposed selection.
For example, the breviscapine for injection has a high decline rate of 41%, and the decline rate is only 1%, but calculated on the basis of active ingredients, The price of the former is still several times that of the latter
.
In the A group, the competition among varieties such as Ginkgo ketone ester and Shuxuening is fierce
.
The market share of Group B products is not high, and the selected companies are not only large in number, but also more expensive than the proposed products of Group A, such as Shuanghuanglian, Yixinshu, and Ginkgo biloba
.
The price of Danshen injection of the same specification is 8.
38 yuan for the manufacturers in group A, and 54.
99 and 138 yuan for the manufacturers in group B, respectively
.
Looking at the Guangdong Union, which has yet to open bids, the competition scene is roughly similar: the most typical one is Tasly’s exclusive product 27mg compound salvia miltiorrhiza dripping pills.
For example, there are nearly a hundred brands competing for non-exclusive products such as Fufang Danshen Tablets.
Guangxi Shiwanshan Pharmaceutical’s 0.
32g Fufang Danshen Tablets purchased only 300 tablets in the first year.
Simply looking at the purchase amount, there is a difference of 7 Number of digits
.
Different brands are facing new challenges.
It is not difficult to understand why the number of collectively sourced products of the Guangdong Union has dropped from 134 to 132, the 7 provinces of the Union changed to 6 provinces, Xinjiang did not follow in the end, and the exclusive group also had varieties withdrawn
.
In addition, the purchase quota has also intensified the formation of competition
.
Taking Hubei Union as an example, the selected products in the same competition unit with the highest decline are allocated to the corresponding medical institutions according to the agreed procurement volume; other selected products are allocated to the corresponding pharmaceutical institutions at 90% of the agreed procurement volume
.
To put it bluntly, for all the selected products, except for the product with the highest decline, which has 100% of the market, the other selected companies can only obtain 90% of the original market
.
The procurement volume to be allocated is 10% of the market volume of the other selected companies and the market share of the failed companies, which are allocated by the pharmaceutical institutions in order: either 30% of the allocated volume is allocated to the selected company with the highest decline in the same product group; or the remaining 70% % The amount to be allocated is independently selected by the medical institution from all the products of the selected enterprises
.
Furthermore, from the perspective of provinces, the two alliances mentioned above overlap in Shanxi, Henan, Hainan, and Ningxia.
There are also overlapping varieties such as Xuesaitong and Ginkgo biloba.
Policy convergence and corporate strategy coordination are still worthy of attention.
In other words, the top brand and the small and medium-sized brands will be judged on top of each other
.
Strategy: Who will go first in academic research and channel coverage? The competition of proprietary Chinese medicines has entered a new track
.
According to analysts, “Chinese patent medicine companies have the characteristics of two large companies, a small middle, a small number of head companies, a large market share, and a large number of tail companies, a small market share.
This industrial structure is not conducive to full market competition and it is difficult to pass market competition.
Formation of prices
.
Group competition not only provides space for the top companies to become stronger, but also leaves the tail companies with vitality
.
In the final analysis, it is still a competition for comprehensive strength
.
” It can also be seen from the centralized procurement documents that the amount of reports received by different companies is different.
Huge: For example, the public medical institutions of the 6-province alliance in Guangdong reported that the specifications of Motherwort granules were 3g/15g, and the minimum pre-purchase quantity in the first year of the purchase period was only 20 (tablets/capsules/bags/sticks).
The corresponding companies were Chengdu No.
1 Pharmaceutical and Jiangxi.
Puzheng Pharmaceutical, and Kelun’s 15g specification obtained a purchase of 590729 (tablets/tablets/bag/sticks); another example is Dahuoluo Pills (Dami Pills 3.
5g).
Jilin Zhenghuanghuang Pharmaceutical’s purchases in the first year were only 20.
(Tablets/capsules/bags/sticks), Qinghai Baojiantang’s purchase volume of Sinopharm reached 140,160 (tablets/tablets/bags/sticks)
.
How to stand out on the new track? Academic research moves towards the front end, and terminal coverage moves towards the grassroots
.
This is the conclusion drawn from the analysis of the varieties included in the two major alliances: Taking Xianling Gubao 0.
5g capsules/0.
3g tablets as an example, as an exclusive product of Tongjitang (Guizhou) Pharmaceutical, the first year purchases were 61614114/ 93410 (tablets/tablets/bags/sticks)
.
In recent years, digging deep into the grassroots space, the proportion of township hospitals has risen to 34.
8%, becoming the largest market, and urban public hospitals and county-level public hospitals have both accounted for more than 20%
.
Shanghai Hutchison Pharmaceutical's 22.
5mg Musk Baoxin Pills received 203,214,578 (tablets/capsules/bags/sticks) in the first year of the Guangdong Union, which reached 9-digit purchases
.
Analyzing this product, after long-term development of Guanxin Suhe Pills, Su Bing Dripping Pills, Ginseng Suhe Xiang Pills, etc.
, the 7-flavor formulas and contents of the existing Shexiang Baoxin Pills were successfully optimized, and the unique particle pill technology was adopted.
, So that Suhexiang Pills were finally reborn as Shexiang Baoxin Pills
.
The evidence-based medicine research of Shexiang Baoxin Pill pays special attention to the academic dissemination in county-level hospitals and township hospitals across the country
.
According to the database of Mi Nei.
com, the sales of Shexiang Baoxin pills have increased from just over 1 billion yuan in 2015 to over 1.
8 billion yuan in 2019.
Even under the new crown epidemic, the first half of 2020 will still maintain a year-on-year growth of 16.
62%
.
In the first half of 2015-2020, the sales of Musk Baoxin Pills in public medical institutions in China (unit: 10,000 yuan) In addition, the purchase of 0.
4g Naoxintong Capsules of Shaanxi Buchang Pharmaceutical also reached 9 digits in the first year.
0.
38g capsules/0.
4g tablets, the exclusive varieties of Dazhu Rhodiola Capsules, and Yiling Pharmaceutical’s Lianhua Qingwen Capsules/granules/tablets performed well
.
It can be seen that academic research needs to be advanced, and product coverage strategies should highlight layered and precise layout
.
The highest daily average cost/highest effective declaration price of 132 medicines collected by Guangdong Union proprietary Chinese medicines