The pharmaceutical sector fell sharply today! The reason is joint strip procurement

Today, the pharmaceutical sector is weak. The list of industry gains and losses showed that the Chinese medicine sector in the 29 tier 1 industries that closed at CITIC on September 12th fell the most. Many white horse stocks fell sharply, Enhua Pharmaceuticals fell to a halt, Tiger Pharmaceuticals fell nearly 7%, East China Pharmaceuticals, Kantai Bio fell more than 6%, Lepu Medical, Hengrui Pharmaceuticals fell more than 5%. Hong Kong biopharmaceutical stocks are also not ideal. As of the end of the report, China Biopharmaceuticals fell 14.61 percent, Shisty Pharmaceuticals Group fell 8.39 percent and Shipharma Group fell 10.27 percent.Some pharmaceutical companies today's share price performance
market analysis believes that this or the market over-reaction to the volume purchase list news, through a consistent evaluation of the enterprise can still benefit from this round of volume procurement.Dr. drug price reduction trend is difficult to stop
news, said that the State Health Insurance Administration under the leadership of the pilot joint procurement held a symposium in Shanghai on September 11, at which the requirements of joint procurement and operating methods were introduced, and published the first batch of volume procurement list: a total of 33 drugs to participate in the pilot procurement.
It was revealed that the volume of procurement is aimed at the generic name varieties corresponding to generic drugs through consistent evaluation, participating enterprises for the mainland listed products of the production enterprises or the total import generation, according to the generic name of the drug selection, enterprises must ensure adequate production capacity. The pilot procurement list identifies drug specifications and specific quantities of procurement. Beijing, Shanghai, Tianjin, Chongqing, Guangzhou, Shenzhen, Shenyang, Dalian, Xi'an, Chengdu, Xiamen and other 11 cities to participate in the volume procurement pilot.
industry speculates that companies will face different price pressures depending on their participation. Of these, more than (or equal to) three took a bidding approach, with an estimated price reduction of 40 per cent, two with a bargaining range of 20 per cent and only one bid negotiated a 10 per cent reduction.
this is consistent with the earlier stated statement made by Hu Jinglin, director of the State Administration of Health and Safety, during his research in Shanghai, that the pilot work of centralized drug procurement should be carefully organized and that drug prices should be pushed down through volume procurement.
analysts stressed that according to the plan, the pilot area of all public medical institutions to estimate the total annual drug use of 60% to 70% of the total procurement, enterprises because of the price of the market is very unlikely. "That's probably why today's decline is affecting companies that are evaluated by generic consistency."cost or become core competition
according to the different progress of the consistent evaluation, the competition faced by enterprises also has different. China Merchants Securities analysis pointed out that through the consistency of the evaluation of the majority of large varieties, most of the current only one enterprise through. And only one pharmaceutical company through the consistent evaluation of varieties in this volume procurement basically no pressure to reduce prices, will obviously benefit. In the short term, it is expected that Huahai, Jingxin, Haizheng, Xinlitai in the second round of volume procurement benefits significantly, these four enterprises through the consistent evaluation of large varieties, and the current market accounted for relatively low, the benefit of the volume of procurement is obvious.
, however, three companies have passed the consistent evaluation of the fear to enter the "low price to get" competitive situation. Guojin Securities analysis, if the centralized procurement of drugs large-scale landing, for domestic generic drugs, the cost will become the core competitive elements of generic pharmaceutical companies, to achieve the integration of RAW drugs and preparations, to ensure supply chain stability will become one of the core factors.
, if the national joint volume procurement is officially rolled out, the sales method of enterprises may change. Reference is regarded as a "small sample" of Shanghai medical insurance drug belt procurement supervision methods - medical institutions to carry out the volume procurement winning bid results into the city's public hospital performance appraisal evaluation and medical insurance cost assessment scope; Some market participants pointed out that if the sales costs can be changed, the profits of enterprises will be beneficial to the impact.
addition, it is worth noting that due to the one-year procurement cycle, more companies will enter in September next year, competition will be more likely to intensify. (Medical Economics)