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    Home > Active Ingredient News > Drugs Articles > Fujian's second round of centralized procurement: biological products are included in the group bidding, "soul bargaining" will reappear

    Fujian's second round of centralized procurement: biological products are included in the group bidding, "soul bargaining" will reappear

    • Last Update: 2021-04-14
    • Source: Internet
    • Author: User
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    The second round of provincial-level procurement is coming!

    On March 30, Fujian announced the official version of the "Documents for Centralized Purchase of Medicines in Fujian Province".


    There are many highlights of this Fujian gathering:

    In the rules, the two groups of A and B are bidding separately, and the over-reviewed products and the original research products are classified into group A, and the remaining products are in group B.


    In terms of products, the centralized procurement of biological products that have received much attention before will be implemented in Fujian.


    The rules responded to the "Opinions on Promoting the Normalized and Institutionalized Development of the Centralized and Volume Procurement of Drugs" issued by the General Office of the State Council issued by the General Office of the State Council in early 2021, and the National Medical Insurance Administration convened a concentration of biological products and proprietary Chinese medicines in July 2020.


    In the Shandong Province bulk purchase in October 2020, recombinant human erythropoietin was also included in the centralized procurement catalog, and three companies won the bid.


    It seems that the centralized procurement of biological products has "the arrow on the string.


    01 Group bidding, one quotation, group A flow bids, the amount can be allocated to group B

    01 Group bidding, one quotation, group A flow bids, the amount can be allocated to group B

    One of the most prominent rules of this Fujian centralized procurement is to divide the bidding into two groups, A and B.


    According to the rules, Group A includes:

    "Original research drugs, reference preparations, drugs that have passed (including deemed passed, the same below) the quality and efficacy consistency evaluation of generic drugs, according to the "Announcement of the State Food and Drug Administration on Issuing the Work Plan for the Registration and Classification Reform of Chemical Drugs" ( 2016 No.


    Other drugs are classified as group B.


    That is to say, the original research and the drugs that passed the consistency evaluation are in the A group, and the products that have not been subjected to the consistency evaluation and the products that have not passed the consistency evaluation are in the B group.


    Of course, this does not mean that all products that have not been reviewed can enter the collection of Fujian, and the document also restricts products that enter Group B:

    The top 500 enterprises in the "Industrial Enterprise Legal Person Units Sorted by the Main Business Income of the Pharmaceutical Industry" in the "2019 China Pharmaceutical Statistics Annual Report (Comprehensive Volume)";

    From January 1 to December 31, 2020, the top 3 companies in the same group (subject to the purchase catalog merged with the generic name dosage form) of the platform for the number of declared varieties.


    The products that can enter the B group are either the top 500 enterprises in the national industry or the top 3 enterprises in Fujian in terms of procurement volume.


    In terms of the bid winning rules, Fujian Province has also made corresponding settings, from which we can see the tendency towards lower prices.


    Regardless of whether it is Group A or Group B, there are two rules for winning bids, namely, 100% and 50% of the agreed procurement volume.


    When the number of declared companies in the group is 3 or more, the one with the lowest quotation can get 100% of the purchase volume.


    When the number of declared companies in the group is 2 or less, the purchase amount that can be obtained is divided into 100% purchase amount or 50% purchase amount.

    As can be seen from the above table, the "decrease" is the key to determining the amount of purchases a company can obtain.

    In addition, it is worth noting that the bidding rules also reveal the pursuit of lower prices.
    Even if the A group is bidding, this part of the volume is proportionally allocated to the B group, and it is still possible to purchase at a low price.

    02 Centralized procurement of two kinds of biological products, and the large varieties of Sansheng Guojian are squeezed again

    02 Centralized procurement of two kinds of biological products, and the large varieties of Sansheng Guojian are squeezed again

    Among the 40 varieties to be collected in Fujian Province, two biological products are involved-recombinant human erythropoietin and recombinant human tumor necrosis factor receptor-antibody fusion protein.
    The former was collected in Shandong Province last year.
    It has already appeared, and the latter is the first time it has appeared in the centralized procurement at the provincial level after the above-mentioned symposium.

    It is reported that the recombinant human tumor necrosis factor receptor-antibody fusion protein type II is used to treat rheumatoid arthritis.
    The original drug is Pfizer’s etanercept, which is the first TNF approved for rheumatoid arthritis (RA).
    The antagonist was approved by the FDA in 1998 and was approved by the NMPA for marketing in February 2010.
    Similar products already on the market in China include Sansheng Guojian's Yisaipu, Hisun's Ambainuo and Shanghai Saijin's Qianke, and Qilu Pharmaceutical's products have already submitted listing applications.

    It is worth noting that Pfizer’s etanercept was only approved for listing in China in 2010, while Sansheng Guojian’s Yisaipu was listed in China as early as 2005, and it was the first reorganized type II listed in China.
    With the tumor necrosis factor receptor-antibody fusion protein, Sansheng Guojian has an advantage in seizing market opportunities.

    Data show that from 2017 to 2019, Yisaipu achieved sales of 1.
    094 billion yuan, 1.
    128 billion yuan and 1.
    162 billion yuan, respectively, accounting for 100%, 100% and 99.
    84% of 3SBio's total revenue.

    As the competing product adalimumab entered medical insurance in 2019, biosimilar drugs from companies such as Biotech and Cinda have also been approved for listing.
    Recombinant human type II tumor necrosis factor receptor-antibody fusion protein products are affected.

    Sansheng Guojian's 2020 annual report shows that Yisaipu's sales fell 46.
    2% year-on-year to 620 million yuan.
    However, IQVIA data shows that Yisaipu still accounts for 45.
    5% of the domestic TNF-α inhibitor market in 2020.

    In October 2020, Hisun and Sansheng Guojian successively announced price cuts.
    Hisun dropped by 38%, and Sansheng Guojian dropped by 50%, both of which fell to about 320 yuan.

    In this centralized procurement, Pfizer, Sansheng Guojian, Hisun and Shanghai Saijin are all involved in Fujian centralized procurement.
    According to the previous Fujian centralized procurement style, it is expected that the price will once again be lowered.

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