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    Home > Medical News > Medical World News > The expansion of the centralized procurement of proprietary Chinese medicines, the three major focuses deeply affect the medicinal material market!

    The expansion of the centralized procurement of proprietary Chinese medicines, the three major focuses deeply affect the medicinal material market!

    • Last Update: 2022-05-01
    • Source: Internet
    • Author: User
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    On February 11, the State Council Information Office held a regular briefing on State Council policies.
    The relevant persons in charge of the National Medical Security Administration, the Consumer Goods Industry Department of the Ministry of Industry and Information Technology, the Drug Administration Department of the National Health Commission and the Drug Administration Department of the State Drug Administration attended the meeting.
    He also answered questions from reporters, and informed and interpreted the progress and policy direction of deepening the reform of centralized procurement of medicines and high-value medical consumables
    .
    As far as the traditional Chinese medicine sector is concerned, it is clearly stated that in 2022, the scope of centralized procurement of proprietary Chinese medicines will be expanded, and on the premise of full competition and quality assurance, prices will be returned to a reasonable price
    .
    As shown in Figure 1, the clinical and retail channels of proprietary Chinese medicines account for 46.
    90% of the raw materials of Chinese herbal medicines.
    Although the overall proportion has declined for five consecutive years, it is still close to "half of the country"
    .
    Therefore, from the inter-provincial joint centralized procurement of 76 kinds of Chinese patent medicines in 2021 to the expansion of the scope again in 2022, it will inevitably profoundly affect the supply channels and market changes of relevant Chinese herbal medicine raw materials
    .
    01.
    Which Chinese herbal medicines are greatly affected by centralized procurement? By 2021, there will be 1,374 varieties of proprietary Chinese medicines (including 93 ethnic medicines) included in the national medical insurance list, accounting for 47.
    16% of all medical insurance varieties
    .
    Among them, there are 242 types of Class A medical insurance (full payment by medical insurance), accounting for 17.
    61% of all Chinese patent medicines covered by medical insurance, and the demand for raw materials of Chinese medicinal materials is greater
    .
    The author analyzed the raw materials of 1,374 kinds of Chinese patent medicines on the big data platform of Tiandi Yuntu and obtained the ranking of the most frequently used Chinese herbal medicines
    .
    Among them, Licorice, Angelica, Rehmannia, Poria, Safflower, Astragalus, Mint, Muxiang, Chuanxiong, Scutellaria, Atractylodes, Codonopsis, Rhubarb, Notoginseng, Salvia, Coptidis, Honeysuckle, Ginseng, Chinese yam, Banlangen and other varieties are in the top 20
    .
    These high-frequency Chinese herbal medicine raw materials are more susceptible to the impact of joint centralized procurement
    .
    Raw materials for leading companies' "fist products" Among the 19 provinces' joint centralized procurement in 2021, a total of 97 manufacturers of 76 kinds of Chinese patent medicine products won the bid
    .
    Among them, 4 companies (Jiangsu Kangyuan Pharmaceutical, Langzhi Group Wanrong Pharmaceutical, Shenwei Pharmaceutical Group, Yunnan Botanical Pharmaceutical) have won 3 products; 6 companies have won 2 products (Beijing Tongrentang , Changshu Leiyunshang Pharmaceutical, Jiangsu Chenpai Pharmaceutical Group, Sichuan Chuanda Huaxi Pharmaceutical, Sichuan Shenghe Pharmaceutical, Yunnan Weihe Pharmaceutical); and there are 87 companies that have won only one product, accounting for 89.
    69%
    .
    This shows that: through centralized procurement, the supply of Chinese patent medicines was supplied by a number of production enterprises in the past, and concentrated in the hands of one or two leading enterprises
    .
    These leading enterprises rely on "fist products", such as Xuesaitong, Shuanghuanglian series, Xuefu Zhuyu capsules, Ginkgo biloba saponins, Shenshuining capsules, Chuanbei loquat and Xingsu cough and other products.
    In this way, the procurement channels of raw materials of Chinese herbal medicines such as ginkgo biloba, angelica, notoginseng, safflower, frankincense, chuanxiong, salvia, Radix Radix, licorice, safflower, achyranthes, red peony, rehmannia, platycodon, peach kernel, schisandra, and citrus aurantium are promoted.
    change
    .
    According to the forecast data of Minet.
    com, in 2021, the market size of Chinese patent medicines in urban physical pharmacies is expected to exceed 100 billion yuan, with nearly 200 varieties selling over 100 million yuan, of which 58 varieties have a growth rate of more than 10%
    .
    In the past five years, the overall performance growth rate of the domestic OTC channel has been higher than that of the clinical channel, and it has become one of the two major consumption channels for Chinese patent medicines
    .
    As shown in Table 1, the demand for medicinal materials related to the 58 OTC Chinese patent medicine varieties with a sales growth rate of more than 10% in 2021 will also increase year-on-year
    .
    Once the medical insurance varieties are included in the joint centralized procurement, it will bring about changes in raw material supply channels or market conditions
    .
    02.
    Why are the decoction pieces and formula granules not included in the centralized collection? It is worth noting that the State Council Information Office did not mention the joint centralized procurement plan of TCM decoction pieces and TCM formula granules.
    The author believes that there are the following reasons: The fundamental reason is that the quality evaluation mechanism of TCM decoction pieces is not perfect.
    The quality evaluation system of Chinese herbal medicines is rooted in the raw materials of Chinese medicinal materials, and the quality evaluation system of raw materials of Chinese medicinal materials is derived from the clinical efficacy of traditional Chinese medicine
    .
    Before the TCM evidence-based big data system has not been established, we can only rely on traditional Chinese medicine quality evaluation standards
    .
    However, the current so-called laboratory standards of traditional Chinese medicine are out of practice and have not been accepted by the clinical practice of traditional Chinese medicine, such as authentic medicinal materials and regional special medicines such as "Taibai Seven Medicines" and "Nine Diamonds and Eighteen Winds"
    .
    Under the background of imperfect quality traceability system, how to promote the concept of "high quality with better price" in joint centralized procurement? The secondary reason is that the individualized demand for decoction pieces has become prominent.
    In the past few years, Shanghai, Gansu and other places have also carried out regional centralized procurement of Chinese medicine decoction pieces, but they have suffered from "scald disease".
    A very important point is that every hospital and even every doctor individual needs are difficult to meet
    .
    In particular, a large number of cold back Chinese medicinal materials and local special medicines that are not included in the pharmacopoeia are difficult to unify in the quality standards and processing standards of various provinces, which can be described as "difficult to adjust"
    .
    For example, ephedra, some doctors must use black-colored "old medicine", while some doctors use green-colored ones "to be strong enough.
    " "Wangbuliuxing" is the seed of the cruciferous blue cabbage, while the "Wangbuliuxing" used in the south is the husk of the woody plant succulent.
    The Chuanxiong used in the hospital is required to be cooked; some doctors require the almonds to be "peeled at the tip", and some doctors require that the skin be used raw,
    etc.
    Excessive price fluctuations of Chinese medicinal materials are also an important factor.
    In the past ten years, with the extensive participation of capital and roasted seeds and nuts, the frequency and amplitude of price fluctuations of Chinese medicinal materials have increased significantly, and some varieties with strong financial attributes are even priced once a day during hot periods.

    .
    For example, when the price of Codonopsis ginseng increased in 2011, the average daily increase was 5 yuan/kg; in May 2021, the price of perilla seeds was hyped up, and the price soared nearly doubled in just one month! In this format, how can the winning decoction pieces companies ensure the supply? How to survive? Based on the above three reasons, the author believes that it is not suitable to carry out large-scale joint centralized procurement in the field of traditional Chinese herbal decoction pieces at least until the order agriculture of Chinese medicinal materials and the whole-process quality traceability system are not fully implemented; , may wish to carry out joint centralized procurement pilots in an orderly manner to reduce the price of formula granules and reduce the possibility of "gold sales"
    .
    03.
    How will centralized procurement affect the supply and price of Chinese herbal medicines? Changes in procurement channels: Centralize the design to the winning bidders in accordance with the policy.
    In the next three years, the number of Chinese patent medicine medical insurance varieties included in the joint centralized procurement will exceed 80% of the total supply.
    This means that the production and supply of Chinese patent medicines will be produced by many The bid-winning enterprise is transferred to the bid-winning enterprise, resulting in the concentration of the procurement of Chinese herbal medicine raw materials to the bid-winning enterprise
    .
    It is recommended that domestic production bases and suppliers always pay attention to the centralized procurement trends of strategic partners, and increase or reduce strategic reserves in advance
    .
    The demand for raw materials of the bid-winning products will increase by 10% in advance.
    Through the joint centralized procurement pilot in the chemical medicine field in 2020 and 2021, the overall sales volume of the bid-winning products generally increased slightly
    .
    The main reason is that price cuts will inevitably stimulate consumption growth; and the secondary reasons are: first, the purification of channels reduces malicious competition; second, after purchasing with quantity, there is no worries about hospital procurement and enterprise supply (in the past, I was worried that sales growth would be too fast, and it would be heavily monitored or even cut off)
    .
    Therefore, the Chinese patent medicine products that won the bid for the joint centralized procurement will maintain a certain growth in demand for medicinal materials, and the demand growth rate is expected to be around 10%
    .
    Once the annual purchase volume is clarified in the bid to promote the implementation of "order agriculture" of Chinese medicinal materials, it means that the annual raw material demand of the winning bidder in the field of Chinese patent medicine production is basically clear, which will help production bases and raw material suppliers to more targeted.
    Develop customers, produce on-demand, acquire on-demand, and reserve on-demand, so as to realize the orderly and scientific nature of "order farming" and production and circulation
    .
    The hoarding and hype of medicinal materials for winning bidders may lead to the transparency of procurement volume and procurement channels.
    On the one hand, many intermediary traders may lose their "jobs"; on the other hand, capital and hot money have more accurate "sniper" targets.
    If capital roasters and traditional traders “hunt” one or several medicinal materials of the winning product, the situation of the winning company is in danger! Because, since the second half of 2020, the price of Chinese medicinal materials such as Rehmannia glutinosa, Forsythia suspensa and Suanzaoren has doubled, making it unbearable for production enterprises
    .
    And the bid-winning products in centralized procurement are not allowed to raise prices in the middle.
    Once the price of medicinal materials skyrockets again, the winning company is very likely to lose money and perform the contract, or even die after winning the bid
    .
    (The author of this article is the chief analyst of Tiandi Yuntu Pharmaceutical Industry Big Data Center)
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