The insulin market may change as a result of the band procurement policy.

Pharmaceutical Network July 28th, with the announcement of centralized procurement of drugs by national organizations updated, a wider range of drug-belt procurement is in the process of being preparedRecently, Shanghai Sunshine Pharmaceutical Procurement Network issued a joint procurement office notice, the content of 86 standards of drug-related basic information collection workIn other words, the third batch of drug-belt procurement beganEarlier, the State Medical Security Administration (hereinafter referred to as the "National Health Insurance Administration") held a symposium to listen to expert opinions and suggestions on the centralized procurement of biological products (including insulin) and traditional Chinese medicineFollowing the first and second batch of collection efforts to cut prices on the chemical drug species, the State Health Insurance Administration's "soul cut price" tentacles extended to more chemical drug regulations, even biological products and traditional Chinese medicineAt one end are chronic ally, special patients who need long-term medication, and on the other are limited health insurance fundsHow to take into account both ends, to promote more clinical use, health insurance to pay pressure on the drug price reduction, benefit patients with chronic diseases, testing the bargaining program of the health insurance bureaus at all levels"It's very difficult to talk about"The relevant people of Wuhan Medical And Health Insurance Bureau spoke to reportersIn January this year, Wuhan took the lead in testing the volume of insulin belt procurement, with a total purchase volume of 1.7057 million units, with Novo Nordisk, Tonghua Dongbao and other enterprises to negotiate pricesAfter the innovation and upgrading of the "quantity-for-price" form, Wuhan Medical Insurance Bureau finally contributed to, some of the winning insulin drugs unit price of up to 43%To volume exchange price and then upgrade the same group, the price reduction of small pharmaceutical companies, let the price reduction of large pharmaceutical companies to replaceThe establishment of a normal centralized band procurement system, the scope of procurement to more drugs, equipment expansion, is to some extent to realize the "state-based centralized procurement of drugs" this initial definition, the scope of procurement has been expandedAt the same time as the increase in the variety of chemical drugs, high-value medical supplies and traditional Chinese medicine, biological drugs, the centralized band volume procurement is also on the agendaFrom July 15 to 16, the relevant departments of the State Medical Insurance Administration held a symposium to listen to expert opinions and suggestions on the centralized procurement of biological products (including insulin) and traditional Chinese medicine, to study and improve procurement policies in related fields, and to promote the reform of procurement methodsGuoxin Securities in the latest research report pointed out that the symposium is only a preliminary consultation, the follow-up policy still has greater uncertaintyIt is expected that the follow-up of biological drugs will select some varieties to take the lead in the pilot and then gradually expand the scope, the preconditions for large-scale collection of traditional Chinese medicine may not yet matureIn fact, a survey conducted by the National Health Insurance Administration in November 2019 quietly finalized a pilot for biopharmaceutical collectionOn November 21, 2019, Hu Jinglin, director of the State Administration of Health Insurance, conducted a study of drug protection and drug concentration procurement in Wuhan, Hubei Province, according to the official website of the State Administration of Health Insurance"Hu Jinglin gave full recognition to Wuhan's exploration of non-overrated drug concentration-volume procurement, and stressed the need to earnestly implement the results of the national organization's centralized drug-belt procurement expansionOn this basis, encourage all regions to explore the establishment of a normal centralized volume procurement system, research will be procurement scope to high-value medical supplies and non-evaluated drugs and other expansion, and continue to reduce the burden of patients on medication"Shortly after the above-mentioned research, Wuhan Pharmaceutical Semen Purchasing Service Platform issued on January 3, 2020," the "Notice on the price of insulin-type drugs in Wuhan City", the first test water diabetes drug insulin band procurementThe range of insulin-type drugs purchased in the range includes human insulin (second-generation insulin), insulin analogue (third-generation insulin) and agreed purchase volume is about 1.757 millionNine enterprises, including Novo Nordisk, Lilly, Tonghua Dongbao and Gan li Pharmaceuticals, were divided into seven groups for bargaining negotiationsThe seven groups divided according to insulin type were: recombinant human insulin, pre-mixed human insulin, medium-acting human insulin, long-acting human insulin, short-acting analogues, premixed analogues, long-acting and long-acting analog"When the groups are grouped, they are replaceable within the groupIn the same group, drug companies with small price reductions will allow drug companies with large price reductions to replaceIn fact, whoever reduces the price by a large margin, can get a larger amount in the same groupThe quantitative price-linked principle we implement is which one has a big price cut and gives a more proportion"The above-mentioned Wuhan Municipal Health Insurance Bureau related to the person in charge of the interview in an interviewFrom the published negotiating rules, Wuhan insulin belt procurement, according to the ladder decline to give market share, if the reduction of less than 5%, will come up with the corresponding products in 2018 more than 50% of the share, for the same group of large reduction of enterprises distribution; share distribution, the top 3 (absolute amount) can be obtainedThe person in charge said that in Wuhan City, insulin products in the volume procurement negotiations, most of the participating enterprises selected, the actual procurement volume exceeded the planned procurement of 1.7057 millionNegotiated prices of insulin products, the price reduction is relatively different, the maximum reduction of 43% Insulin market or change assumes that insulin collection will accelerate the import substitution of the insulin market, while further enhancing insulin use permeability Among the pharmaceutical companies involved in the above-mentioned bargaining negotiations are novonord, Lilly, Sanofi three multinational pharmaceutical companies, but also Tonghua Dongbao, Federal Pharmaceuticals, Yuheng Pharmaceuticals, Ganli Pharmaceuticals, Tianmai Bio and other domestic pharmaceutical companies According to an industry insider, insulin drugs for centralized band procurement, the main negotiating object is long-term control of the main market of multinational pharmaceutical companies, "insulin market is almost monopolized by multinational companies, these multinational pharmaceutical companies firmly grasp our drug habits and structure, it is likely that the group does not reduce prices." According to The Net, china's public medical institutions will sell nearly 25 billion yuan of insulin products in 2019 The top 10 companies in sales include Novo Nordisk, Sanofi, Lilly and other multinational pharmaceutical companies Tonghua Dongbao in the institution research, said, "its second-generation insulin volume is not very large, because in the first-tier cities, second-tier cities are mainly third-generation insulin, and the second generation of insulin is sold very cheap, in general, after calculation, this collection of Dongbao's income and profits are increased, but will not have a greater impact on performance." "Regarding the trend of national promotion of insulin products collection, Tonghua Dongbao is full of confidence "Whether you do or not collect, for insulin production enterprises, sales enterprises, the most core thing is to do their own product quality and marketing." Tonghua Dongbao related to the person in charge of the investigation of the agency said When the reporter on the supply of selected products further to Tonghua Dongbao interview, the company's relevant person in charge of the response, "the company's production, operation, sales are steadily advancing." However, capital markets reacted quickly to the expectation of a "soul cut" in a band-sours On July 17, the State Health Insurance Administration released information on the centralized procurement of biological products (including insulin) and traditional Chinese medicine On the following trading day, Gan Li Pharmaceuticals' share price plummeted and fell after the opening bell On the same day, Tonghua Dongbao's shares fell 7.01% Guoxin Securities in the latest research report pointed out that "insulin product maturity is high, the competitive landscape there is a possibility of collection." However, there are still differences in composition, dosage form and dosing device sesame between different insulin products, and there are still potential obstacles in product conversion and patient compliance, and there is still some uncertainty as to whether insulin collection can land Assuming that insulin collection lands, the import substitution of the insulin market will be accelerated, while further improving the permeability of insulin use "As a key lifeline for patients with chronic diseases to reduce drug prices and reconstruct the incentive structure of the supply side, medicare payments are gradually tilting toward disease prevention." In recent years, the domestic diabetes drug medical insurance payment policy has been introduced frequently On the one hand, the new diabetes treatment drug GLP-1 receptor agonist, SLGT-2, DPP-4 drug, etc have entered the health insurance On the other hand, in October 2019, the four departments jointly issued the "Guidance on improving the medical guarantee mechanism for hypertension and diabetes in urban and rural areas" clearly, the high blood pressure, diabetes insured patients in the medical institutions of blood pressure, blood sugar reduction drug costs are paid by the co-ordination fund, the proportion of payment within the policy range reached more than 50% Behind the frequent introduction of policies, as a key lifeline to reduce drug prices and reconstruct the incentive structure of supply providers, health insurance payments are gradually tilting towards the disease prevention end Reducing the huge expenditure of health insurance fund due to chronic diseases and special diseases, which causes severe illness, has become the key to the reform of the health insurance payment system On October 9, 2019, Chen Jinfu, deputy director of the State Administration of Health Insurance, introduced the situation of improving the mechanism of high blood pressure and diabetes outpatient drug treatment for urban and rural residents, noting that the total number of people treated for hypertension and diabetes in China reached 143 million people, and the medical insurance fund involved was nearly 40 billion yuan a year "Insulin treatment, hypertension medication seems not expensive, but for the difficult people, for the common people, the continuous burden of medication does affect life, especially may cause 'small disease treatment', on the one hand, the emergence of small diseases into a major disease, high blood pressure, diabetes complications are many, the consequences are very serious, such as kidney failure and other conditions, easy to form a major disease expenditure." If the safeguard measures can not be pre-empted, the patient with the disease may increase the burden, whether to the patient, the fund, or the community, it should be said that there is a great 'residual' effect Chen Jinfu said in response to a reporter's question In fact, the overall treatment rate of diabetic patients in China is low, a large number of diabeticpatients have not received effective treatment, insulin treatment prevalence rate is also low for a long time According to the International Diabetes Alliance (IDF), only 2% of people with diabetes in China use insulin-type drugs to control their blood sugar, compared with about 30% in the United States In 2019, the average annual medical cost for diabetics in China is about $936.2, while in the United States, for example, the average person with diabetes spends $9505.6 per year on health care