North China Pharmaceuticals proposed to abandon the qualification due to insufficient supply, and the joint procurement responds to the penalty decision

North China Pharmaceuticals proposed to abandon the qualification due to insufficient supply, and the joint procurement responds to the penalty decision

North China Pharmaceuticals proposed to abandon the qualification due to insufficient supply, and the joint procurement responds to the penalty decision

4 ibuprofen bid companies have the highest price in North China Pharmaceutical

4 ibuprofen bid companies have the highest price in North China Pharmaceutical

In response to the first company that was punished for cutting off supplies, the State Organization of the Joint Drug Procurement Office responded
.

A reporter from Beijing Youth Daily learned that in response to speculation that North China Pharmaceutical’s default was due to the low price of the centralized procurement, which affected profits, the State Organization’s Drug Joint Procurement Office responded that there were 4 selected companies for ibuprofen sustained-release capsules, of which The selected price of Huabei Pharmaceutical is the highest, at 8.

Winning the bid must perform the contract, and breach of contract must be punished

Winning the bid must perform the contract, and breach of contract must be punished

The National Organization Drug Joint Procurement Office (hereinafter referred to as "Joint Procurement Office") included North China Pharmaceuticals in the "violation list" and canceled its qualification to participate in the national organization's centralized drug procurement activities from August 11, 2021 to May 10, 2022
.

The United Procurement Office stated that as of the end of July, the third batch of centralized procurement has been implemented for 9 months, and the average supply of selected drugs by the selected enterprises has reached 1.
5 times the annual agreed purchase volume
.

The fourth batch of centralized procurement has been implemented for 3 months, and the average supply of selected drugs by the selected companies has reached 45% of the annual agreed purchase volume

Regarding North China Pharmaceutical’s breach of contract, the United Procurement Office has stated in its announcement on August 20 that the company’s ibuprofen sustained-release capsules selected in the third batch of nationally organized drug procurement failed to supply the agreed procurement volume in Shandong Province according to the agreement.
After many interviews and consultations, the supply situation has not improved.
On August 11, 2021, the company proposed to waive its eligibility
.

Recently, we have also noticed that North China Pharmaceutical has issued an announcement on this, acknowledging that the shortage of supply is mainly caused by the company's insufficient production capacity and inadequate internal management

It is clearly stipulated in the bidding document for the centralized procurement of drugs organized by the state that if the company fails to fulfill its supply promise and affects its clinical use, it will be included in the "list of violations" and be dealt with according to the severity of the circumstances
.

Since this was the first incident in which a selected company failed to complete the agreed procurement volume and gave up its eligibility for selection since centralized procurement in the country, the medical institutions in Shandong Province responded more concentratedly and strongly.

The cancellation of the penalty for participating in the state-organized drug centralized procurement bidding from August 11, 2021 to May 10, 2022 is an appropriate punishment based on its inability to supply the agreed procurement volume in a province
.

In the next step, the joint procurement office will pay close attention to the supply of ibuprofen sustained-release capsules of North China Pharmaceutical in the other six provinces.

The four selected companies in North China have the highest prices

The four selected companies in North China have the highest prices

There are speculations that North China Pharmaceutical’s default was due to the low price of centralized procurement, which affected profits.
In this regard, the Central Procurement Office stated that there are 4 selected companies for ibuprofen sustained-release capsules, of which North China Pharmaceutical’s selected price is the highest at 8.
04 Yuan per box (30 tablets)
.

Before the centralized procurement, the sales price of North China Pharmaceutical's ibuprofen sustained-release capsules on the centralized pharmaceutical procurement platforms of Tianjin, Shanxi, Qinghai and other provinces and cities was close to the selected price, but due to the lack of volume procurement, sales of the drug in 2020 Only more than 500,000 yuan
.

After the centralized procurement, using the "quantity-price linkage" method, it was agreed that North China Pharmaceutical would supply 79.

The Central Procurement Office stated that for a long time, the problem of falsely high drug prices in China has been serious.
The prices of commonly used drugs are as high as 2-3 times the average price of major international countries.
At the same time, the sales expenses of mainstream pharmaceutical companies account for nearly 40% of sales revenue, which is significantly higher.
In other consumer goods industries, it has not only increased the burden on the masses and medical insurance funds, encouraged unhealthy trends in the industry, but also restricted the high-quality development of the medical and health industry
.

The original intention of carrying out the reform of centralized procurement with volume was to squeeze out the falsely high drug prices, promote the return of drug prices to a reasonable level, reduce the burden of the masses, and make the drugs more affordable for patients

The Central Procurement Office stated that, in the procurement tenders, companies are required to quote at no less than the cost, and the results of the selection will be produced through fair competition
.

Therefore, the selected enterprises and the selected prices are the result of independent quotations and fair competition in the market

The Central Procurement Office also reminds that after the reform of centralized procurement, it is the responsibility of the selected companies to perform according to the agreed price and agreed volume, and the wrong practice of reporting low prices without supply before the reform should be discarded
.

The replacement company has been determined according to the established selection procedure

The replacement company has been determined according to the established selection procedure

The Central Procurement Office stated that after North China Pharmaceuticals applied for abandoning the eligibility for the selection, the Shandong Provincial Medical Insurance Department immediately initiated the candidate enterprise procedure.
According to the established selection procedure, Zhuhai Rundu Pharmaceutical Co.
, Ltd.
has been determined as a substitute enterprise to supply Shandong Province, and according to Zhuhai Rundu Pharmaceuticals are supplied at the selected price of 4.
05 yuan per box (20 capsules) in the national organization's centralized procurement, which is lower than the North China Pharmaceutical's selected price.
Patients in Shandong Province will purchase the same drugs that have also passed the consistency evaluation at a lower price
.

The Central Procurement Office stated that in the past few batches of centralized procurement, optimized rules have been adopted to gradually increase the number of selected companies and strengthen supply guarantees.
The following measures will be further improved in the next step
.

One is to strengthen the monitoring and handling of the supply of selected drugs
.
Further clarify the responsibilities of supply performance of enterprises, implement the "Opinions of the General Office of the State Council on Promoting the Normalized and Institutionalized Development of Centralized and Volumetric Procurement of Drugs" (Guobanfa [2021] No.
2), and require selected enterprises to do a good job in predicting and preventing market risks , Organize production and supply in accordance with the procurement contract to meet the procurement needs of selected drugs
.
The Joint Procurement Office will strengthen the monitoring and early warning of the procurement of the selected products, and deal with the problems found in the procurement process such as the failure of the company to perform the supply agreement
.
At the same time, the provinces will also actively perform their duties and perform their duties.
According to the National Medical Insurance Administration's "Guiding Opinions on Establishing a Credit Evaluation System for Pharmaceutical Prices and Recruitment and Procurement", the main responsibility of the selected enterprises for performance of the contract will be compacted through credit evaluation, and for the enterprises that cannot perform after the election.
Give a rating of untrustworthiness and make corresponding actions
.

The second is to effectively strengthen the application of violation lists and untrustworthy ratings in the field of centralized drug procurement
.
Strengthen the use of violations and untrustworthy results, and further restrict the violation and untrustworthy enterprises in the future national and provincial centralized procurement declaration conditions
.
When carrying out the continuation of the expiration of the centralized procurement agreement, strengthen the weight of supply and credit in the process of generating the selected enterprises, so that the trustworthy will be more likely to be selected, and the untrustworthy will be restricted
.

The third is to implement alternative mechanisms to improve market supply stability
.
The relevant documents of the national organization of the centralized drug procurement have been clarified.
When the selected company cannot supply the procurement needs of medical institutions in a timely manner, the province can initiate the selection process of the candidate company to ensure sufficient clinical supply and reasonable prices
.

Text/Reporter Zhang Xin Co-ordinated/Yu Meiying