echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Active Ingredient News > Drugs Articles > Low-cost medicine out of stock: the cost of Chinese medicine soared 50 times the price of raw materials by monopoly

    Low-cost medicine out of stock: the cost of Chinese medicine soared 50 times the price of raw materials by monopoly

    • Last Update: 2021-02-06
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    Recently, CCTV financial channel "first time" column broadcast a "concern about the survival of low-cost drugs dilemma" report, the report is from the Guangdong Provincial Health and Planning Commission recently published a "drug transactions in the fifth batch of non-contract supply and not timely delivery of enterprises" list began.
    statistics, in this list, a total of 1004 products out of stock or delivery is not timely, the vast majority of low-cost drugs, involving high levels of more than 100 drugs. Why is there such a wide range of low-cost drugs out of stock? The underlying reason is well known - the price of raw materials has skyrocketed.API is monopolized to raise prices
    It is reported that 80% of the products of a pharmaceutical company belong to low-cost drugs, is currently facing out-of-stock, and some have even stopped production - among them, the main product of hydrochloric acid methamphetamine raw materials from the monopoly before 6000 yuan a kilogram, rose to the current 20,000 yuan per kilogram, raw material prices skyrocketed so that the overall cost of its products increased by 40% to 50%.
    also has the head of the pharmaceutical company revealed that many of its best-selling low-cost drugs, all suffered a sharp rise in raw materials, the increase is generally at least a few times more, some raw materials even in the last two or three years, the increase reached 100 times.
    In fact, as early as the beginning of 2016 at the "two sessions", Sichuan Good Doctor Pharmaceutical Group Co., Ltd. Chairman Geng Funon said that in recent years, the pharmaceutical industry API monopoly phenomenon is more serious, which is also one of the main factors causing drug prices.
    For example, on February 10, this year, the State Administration for Industry and Commerce announced the "Competition Enforcement Announcement No. 4 of 2017 (Wuhan Emerging Elite Pharmaceutical Co., Ltd. abuse of market dominance case), the enterprises involved in several raw materials pharmaceutical production enterprises salphate in the national total power income bag, after occupying the full market share of the apida, sewerate raw materials from about 20,000 yuan / ton to a minimum of 60,000 yuan / ton, the highest price reached 500,000 yuan / ton.
    addition, in recent years, the API industry is facing great pressure on environmental protection, but also a significant increase in the price of RAW drugs an important reason.
    Last November, the Hebei Provincial Atmospheric Office issued the "Air Pollution Prevention and Control Order No. 2", and then, a "Shijiazhuang City Air Pollution Prevention and Control Dispatch Order" to the pharmaceutical industry brought a heavy earthquake, requiring shijiazhuang city all pharmaceutical industry to stop production, without the approval of the municipal government may not resume production.
    Shijiazhuang is one of the important api production bases, gathered stone medicine, North China Pharmaceutical and many other well-known API production enterprises.
    the pressure of environmental protection, the increase in costs is inevitable, naturally the pressure of price increases will be extended to chemical preparations production enterprises.
    At the same time, coupled with the monopoly of API, and price increases are not necessarily available, pharmaceutical preparation manufacturers, especially those low-cost pharmaceutical production enterprises, can not be supplied according to the contract reasons are easy to understand.The cost of Chinese medicine has skyrocketed 50 times
    According to CCTV Financial, in addition to Western medicine, Chinese medicine is also facing the dilemma of rising raw material costs, many drugs are also on the verge of out of stock.
    Zhang Guimin, chairman of Lunan Pharmaceutical Group, said that prices like scorpions have been many times longer, the previous price is dozens of yuan, now are thousands of yuan, doubled twenty or thirty times, some even fifty or sixty times.
    the head of a pharmaceutical company in Shandong told reporters that their enterprises have dozens of kinds of Chinese medicines, most of which were listed in the 1990s, and now the prices of the main raw materials of these drugs have risen year after year accounted for 90%.
    although the cost of raw materials is increasing year by year, many drugs are still using the prices of more than a decade ago, or only slightly higher prices. Therefore, for some raw materials cost too high, inevitable loss of drugs, can only stop production.
    this is why in the past cheap and beautiful Chinese medicine, such as compound Dansan tablets, suddenly become the market has become a rare low-cost drugs. Because in this era of soaring costs and weak profits, many Chinese medicine manufacturers have lost the incentive to produce these low-cost Chinese medicine.
    In response to the problem of low-cost drug out of stock, Liu Guoen, a member of the advisory committee of the State Council's leading group on medical reform, said in an interview that the shortage of low-cost drugs is a phased problem in China's medical field and should be solved from the front and end of the whole chain of medical services.
    Liu Guoen suggested that when bidding for procurement, the government should leave some room for enterprises in price negotiations, or let enterprises judge in the next few years, raw materials market and patients on the situation of drug demand changes, so as to leave a reasonable price space. (Seber Blue)
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.