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    Home > Medical News > Latest Medical News > Hidden worries in the development of volume procurement: supply cuts, medium-sized enterprises out, procurement fragmentation...

    Hidden worries in the development of volume procurement: supply cuts, medium-sized enterprises out, procurement fragmentation...

    • Last Update: 2021-04-14
    • Source: Internet
    • Author: User
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    Medical Network News, March 31st, mass procurement has become normalized, mass procurement has become normalized and institutionalized, starting with 500 varieties, and both national and local lines are advancing at the same time.
     
    Pharmaceutical companies are busy dealing with various centralized procurement projects, not to mention which products will be included in the future, just say that after the selection, the supply of enterprises and the clinical replacement of hospitals, are all these smooth?
     
    Since the implementation of the national 4+7 centralized procurement, the implementation has been fairly good in 11 pilot cities, but after the non-4+7 centralized procurement area followed the bid, as the scope of procurement expanded, the procurement volume increased sharply, and the situation inevitably changed.
    There has been an incident in which Fosinopril was cut off after the collection of 4+7 in Hebei Province.
     
    Due to the insufficient supply of fosinopril produced by BMS, the selected manufacturer of 4+7, it is difficult to guarantee the whole province, so that the Hebei procurement platform urgently invited relevant manufacturers to participate in the procurement.
    In the end, Huahai Pharmaceutical, which was not selected by the 4+7 collection, gained a 60% market share in this case.
     
    In addition, in January 2020, the second batch of national centralized procurement bids were opened.
    Among them, the price of acarbose was reported to be as low as 1 cent per piece, which is shocking.
    At that time, Bayer's Acarbose supply provinces included 16 places including Beijing, Tianjin, and Shanxi, and Luye Pharmaceuticals supply provinces included 15 places including Hebei, Jilin, and Heilongjiang.
     
     
    It can be seen that the price of this product of Luye Pharma is higher than that of Bayer, and Bayer is also more attractive as the original manufacturer.
    Under the advantage of the original research low price, the price depression has formed, and the challenges encountered by the volume purchase have also begun to appear.
     
      In the national centralized procurement, the agreed purchase amount of Acarbose 50mg in the first year was 318 million tablets.
    However, according to industry insiders, due to the low price of Baitangping, it was "snatched" for a while, and many hospitals were out of stock.
    This reflects the choice between doctors and patients for the original research drug and the centralized collection and evaluation drug.
     
      In addition, after winning the election, clinical replacement also faces certain pressures.
    After purchasing in quantity, due to the sharp drop in the price of the selected varieties, sales have shrunk sharply, while the prices of similar competing varieties (such as those that have not participated in centralized procurement or Chinese patent medicines) are still very high.
    These varieties take advantage of their high prices and sufficient promotion costs.
    The advantage is that the space left by the selected varieties has been grabbed by the way of gray benefit transmission.
    Therefore, the hospitals in some places have not significantly reduced the cost of medicine.
     
      In addition, the distribution of selected varieties and selected pharmaceutical companies in the national centralized procurement is also worthy of the industry's attention.
     
      According to a report by the Shanghai Municipal Health and Health Research Center, considering the companies corresponding to the first three batches of four rounds of nationally selected products, most of them are selected by the Ministry of Industry and Information Technology's top 100 companies and non-top 100 companies, while medium-sized companies are selected very few.
    The ranking of enterprises and the distribution of selected products show a "basin effect".
     
      
      ▲Image source: Shanghai Hygiene and Health Research Center
     
      The bid winning rate of leading companies is gradually decreasing, and the number of tail companies is increasing.
    Nearly 50% of tail companies have no sales and sales records, and are facing dual pressures on quality and supply.
    The number of products selected by the central enterprises ranked 101-400 by the Ministry of Industry and Information Technology is extremely low.
     
      In recent years, the marketing transformation of pharmaceutical companies that we have been recommending actually refers to medium-sized companies.
    The strategy of the head companies is relatively stable.
    Through R&D + introduction + internationalization, the impact of centralized procurement on them is not too large.
    However, the tail companies are small in scale, many or even only one or two varieties.
    All-for-all, in order to survive, the price is outrageously low, and the actual potential risk is greater.
     
      For medium-sized enterprises, the Central Purchasing blow to their more serious, therefore, the entire pharmaceutical changes in the environment, the transition to medium-sized businesses is more important for.
     
      With the normalization and fragmentation of centralized procurement, pharmaceutical companies have to deal with national centralized procurement on the one hand, and on the other hand the centralized procurement of provincial, municipal, and even district-level medical consortia---a medical consortium in Shanghai Even the "Overlord Clause" appeared in the recruitment documents: If the purchase quantity overlaps with the higher-level purchase items, the manufacturer cannot hold the hospital responsible.
    In the context of fragmented procurement, companies are overwhelmed and exhausted, which actually increases the transaction costs of drugs .
     
      What's more, the level of recruitment and procurement policies varies from place to place.
    Which varieties can be included and which ones should not be included? All localities still have discretion, and it is not a pure "trigger mechanism" that can achieve what should be done.
      Medical Network News, March 31st, mass procurement has become normalized, mass procurement has become normalized and institutionalized, starting with 500 varieties, and both national and local lines are advancing at the same time.
     
      Pharmaceutical companies are busy dealing with various centralized procurement projects, not to mention which products will be included in the future, just say that after the selection, the supply of enterprises and the clinical replacement of hospitals, are all these smooth?
     
      Since the implementation of the national 4+7 centralized procurement, the implementation has been fairly good in 11 pilot cities, but after the non-4+7 centralized procurement area followed the bid, as the scope of procurement expanded, the procurement volume increased sharply, and the situation inevitably changed.
    There has been an incident in which Fosinopril was cut off after the collection of 4+7 in Hebei Province.
     
      Due to the insufficient supply of fosinopril produced by BMS, the selected manufacturer of 4+7, it is difficult to guarantee the whole province, so that the Hebei procurement platform urgently invited relevant manufacturers to participate in the procurement.
    In the end, Huahai Pharmaceutical, which was not selected by the 4+7 collection, gained a 60% market share in this case.
     
      In addition, in January 2020, the second batch of national centralized procurement bids were opened.
    Among them, the price of acarbose was reported to be as low as 1 cent per piece, which is shocking.
    At that time, Bayer's Acarbose supply provinces included 16 places including Beijing, Tianjin, and Shanxi, and Luye Pharmaceuticals supply provinces included 15 places including Hebei, Jilin, and Heilongjiang.
     
     
      It can be seen that the price of this product of Luye Pharma is higher than that of Bayer, and Bayer is also more attractive as the original manufacturer.
    Under the advantage of the original research low price, the price depression has formed, and the challenges encountered by the volume purchase have also begun to appear.
     
      In the national centralized procurement, the agreed purchase amount of Acarbose 50mg in the first year was 318 million tablets.
    However, according to industry insiders, due to the low price of Baitangping, it was "snatched" for a while, and many hospitals were out of stock.
    This reflects the choice between doctors and patients for the original research drug and the centralized collection and evaluation drug.
     
      In addition, after winning the election, clinical replacement also faces certain pressures.
    After purchasing in quantity, due to the sharp drop in the price of the selected varieties, sales have shrunk sharply, while the prices of similar competing varieties (such as those that have not participated in centralized procurement or Chinese patent medicines) are still very high.
    These varieties take advantage of their high prices and sufficient promotion costs.
    The advantage is that the space left by the selected varieties has been grabbed by the way of gray benefit transmission.
    Therefore, the hospitals in some places have not significantly reduced the cost of medicine.
     
      In addition, the distribution of selected varieties and selected pharmaceutical companies in the national centralized procurement is also worthy of the industry's attention.
     
      According to a report by the Shanghai Municipal Health and Health Research Center, considering the companies corresponding to the first three batches of four rounds of nationally selected products, most of them are selected by the Ministry of Industry and Information Technology's top 100 companies and non-top 100 companies, while medium-sized companies are selected very few.
    The ranking of enterprises and the distribution of selected products show a "basin effect".
     
      
      ▲Image source: Shanghai Hygiene and Health Research Center
     
      The bid winning rate of leading companies is gradually decreasing, and the number of tail companies is increasing.
    Nearly 50% of tail companies have no sales and sales records, and are facing dual pressures on quality and supply.
    The number of products selected by the central enterprises ranked 101-400 by the Ministry of Industry and Information Technology is extremely low.
     
      In recent years, the marketing transformation of pharmaceutical companies that we have been recommending actually refers to medium-sized companies.
    The strategy of the head companies is relatively stable.
    Through R&D + introduction + internationalization, the impact of centralized procurement on them is not too large.
    However, the tail companies are small in scale, many or even only one or two varieties.
    All-for-all, in order to survive, the price is outrageously low, and the actual potential risk is greater.
     
      For medium-sized enterprises, the Central Purchasing blow to their more serious, therefore, the entire pharmaceutical changes in the environment, the transition to medium-sized businesses is more important for.
     
      With the normalization and fragmentation of centralized procurement, pharmaceutical companies have to deal with national centralized procurement on the one hand, and on the other hand the centralized procurement of provincial, municipal, and even district-level medical consortia---a medical consortium in Shanghai Even the "Overlord Clause" appeared in the recruitment documents: If the purchase quantity overlaps with the higher-level purchase items, the manufacturer cannot hold the hospital responsible.
    In the context of fragmented procurement, companies are overwhelmed and exhausted, which actually increases the transaction costs of drugs .
     
      What's more, the level of recruitment and procurement policies varies from place to place.
    Which varieties can be included and which ones should not be included? All localities still have discretion, and it is not a pure "trigger mechanism" that can achieve what should be done.
      Medical Network News, March 31st, mass procurement has become normalized, mass procurement has become normalized and institutionalized, starting with 500 varieties, and both national and local lines are advancing at the same time.
     
      Pharmaceutical companies are busy dealing with various centralized procurement projects, not to mention which products will be included in the future, just say that after the selection, the supply of enterprises and the clinical replacement of hospitals, are all these smooth?
     
      Since the implementation of the national 4+7 centralized procurement, the implementation has been fairly good in 11 pilot cities, but after the non-4+7 centralized procurement area followed the bid, as the scope of procurement expanded, the procurement volume increased sharply, and the situation inevitably changed.
    There has been an incident in which Fosinopril was cut off after the collection of 4+7 in Hebei Province.
     
      Due to the insufficient supply of fosinopril produced by BMS, the selected manufacturer of 4+7, it is difficult to guarantee the whole province, so that the Hebei procurement platform urgently invited relevant manufacturers to participate in the procurement.
    In the end, Huahai Pharmaceutical, which was not selected by the 4+7 collection, gained a 60% market share in this case.
     
      In addition, in January 2020, the second batch of national centralized procurement bids were opened.
    Among them, the price of acarbose was reported to be as low as 1 cent per piece, which is shocking.
    At that time, Bayer's Acarbose supply provinces included 16 places including Beijing, Tianjin, and Shanxi, and Luye Pharmaceuticals supply provinces included 15 places including Hebei, Jilin, and Heilongjiang.
     
     
      It can be seen that the price of this product of Luye Pharma is higher than that of Bayer, and Bayer is also more attractive as the original manufacturer.
    Under the advantage of the original research low price, the price depression has formed, and the challenges encountered by the volume purchase have also begun to appear.
     
      In the national centralized procurement, the agreed purchase amount of Acarbose 50mg in the first year was 318 million tablets.
    However, according to industry insiders, due to the low price of Baitangping, it was "snatched" for a while, and many hospitals were out of stock.
    This reflects the choice between doctors and patients for the original research drug and the centralized collection and evaluation drug.
     
      In addition, after winning the election, clinical replacement also faces certain pressures.
    After purchasing in quantity, due to the sharp drop in the price of the selected varieties, sales have shrunk sharply, while the prices of similar competing varieties (such as those that have not participated in centralized procurement or Chinese patent medicines) are still very high.
    These varieties take advantage of their high prices and sufficient promotion costs.
    The advantage is that the space left by the selected varieties has been grabbed by the way of gray benefit transmission.
    Therefore, the hospitals in some places have not significantly reduced the cost of medicine.
     
      In addition, the distribution of selected varieties and selected pharmaceutical companies in the national centralized procurement is also worthy of the industry's attention.
     
      According to a report by the Shanghai Municipal Health and Health Research Center, considering the companies corresponding to the first three batches of four rounds of nationally selected products, most of them are selected by the Ministry of Industry and Information Technology's top 100 companies and non-top 100 companies, while medium-sized companies are selected very few.
    The ranking of enterprises and the distribution of selected products show a "basin effect".
    Healthy, healthy, healthy
     
      
      ▲Image source: Shanghai Hygiene and Health Research Center
     
      The bid winning rate of leading companies is gradually decreasing, and the number of tail companies is increasing.
    Nearly 50% of tail companies have no sales and sales records, and are facing dual pressures on quality and supply.
    The number of products selected by the central enterprises ranked 101-400 by the Ministry of Industry and Information Technology is extremely low.
     
      In recent years, the marketing transformation of pharmaceutical companies that we have been recommending actually refers to medium-sized companies.
    The strategy of the head companies is relatively stable.
    Through R&D + introduction + internationalization, the impact of centralized procurement on them is not too large.
    However, the tail companies are small in scale, many or even only one or two varieties.
    All-for-all, in order to survive, the price is outrageously low, and the actual potential risk is greater.
     
      For medium-sized enterprises, the Central Purchasing blow to their more serious, therefore, the entire pharmaceutical changes in the environment, the transition to medium-sized businesses is more important for.
    Pharmaceutical Pharmaceutical Pharmaceutical Enterprise Enterprise Enterprise
     
      With the normalization and fragmentation of centralized procurement, pharmaceutical companies have to deal with national centralized procurement on the one hand, and on the other hand the centralized procurement of provincial, municipal, and even district-level medical consortia---a medical consortium in Shanghai Even the "Overlord Clause" appeared in the recruitment documents: If the purchase quantity overlaps with the higher-level purchase items, the manufacturer cannot hold the hospital responsible.
    In the context of fragmented procurement, companies are overwhelmed and exhausted, which actually increases the transaction costs of drugs .
    Hospital hospital hospital medicine medicine medicine
     
      What's more, the level of recruitment and procurement policies varies from place to place.
    Which varieties can be included and which ones should not be included? All localities still have discretion, and it is not a pure "trigger mechanism" that can achieve what should be done.
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