What are the impacts on pharmaceutical companies since the bid opening of volume purchase?

[industry trends of pharmaceutical network] since September 2018, China has organized drug pilot centralized joint procurement for the first time from the national level, and then expanded to the whole country in July 2019 This policy, which has been opposed by many pharmaceutical companies in the industry, with too much resistance and even some people threatening to "die in the womb", has swept the entire pharmaceutical circle in just one year, bringing waves of shocks Up to now, the large-scale purchase drama has been staged for one year What are the impacts on pharmaceutical companies and industries? According to the review of China's hospital pharmaceutical market (the third quarter of 2019) released by iqvia, the effect of "4 + 7" volume procurement is significant, and the growth trend of selected products is strong, while most of the non selected original drug markets are significantly squeezed A pharmaceutical company said in the financial report: "the winning of the product solved some bottleneck problems existing in the past sales for a long time, and the sales volume has obviously increased rapidly." Such as zoelacetan of Beijing New Pharmaceutical Co., Ltd According to the financial report, in the first half of 2019, the company's sales revenue was 1.859 billion yuan, a year-on-year increase of 31.92%; its net profit was 326 million yuan, a year-on-year increase of 52.89% The sales volume of rosuvastatin winning the bid in volume procurement was 395 million yuan, a year-on-year increase of 16%; the sales volume of the other winning zuelacetam was 48 million yuan, a year-on-year increase of 253% But in terms of sales, some winning drugs are declining For example, the sales volume of entecavir dispersible tablets of China's biopharmaceutical industry is about 23352.1 million yuan in the previous three quarters, compared with 2.57286 billion yuan in the same period last year, a decrease of about 240 million yuan This is mainly due to the large increase in the sales volume of "4 + 7" volume procurement winning products, but the relatively low price and small increase in revenue So on the whole, if the market share is not too high before winning the bid, the shortlisted volume purchasing list can rapidly increase the sales volume, and the sales volume also increases synchronously, which has the effect of exchanging price for quantity But if the market share has been high before, the increase in volume may not be enough to make up for the price loss Unsuccessful enterprises are determined by product line and innovation Last year's "4 + 7" volume procurement failed to win the bid They can continue to do market in non "4 + 7" areas, and retail can do so This year, however, the "4 + 7" volume procurement has no dead end Many sales teams of unsuccessful products can only be transferred or disbanded on the spot For example, as the core product of Jialin pharmaceutical, the result of failing to win the bid is that the company's market is almost all occupied, and the sales team can only be disbanded on the spot and go home, with no other choice For enterprises with only one variety and one production line, failure to win the bid is even more fatal However, if the product line of the enterprise is rich and the variety is diverse, even if one fails to win the bid, there are other products that can continue to negotiate and promote the market, and the sales team of the products that fail to win the bid can also transfer their positions or internal deployment to other products Therefore, although the "4 + 7" volume procurement has a greater impact on some enterprises, resulting in a large price reduction of generic drugs, on the whole, it has little impact on some subdivision areas, such as enterprises with rich product pipeline and strong innovation ability Moreover, the "4 + 7" policy declaration price and bid winning rules do not require to win the bid at a low price The policy is relatively rational and moderate, which gives enterprises and industries a transition period It is more conducive to the shuffling of the generic pharmaceutical industry, giving birth to a new leader with more cost priority and high barriers to generic drugs, and making innovation a driving force for the development of the industry As an important global pharmaceutical market, China is an important track for the performance growth of multinational pharmaceutical enterprises Therefore, "4 + 7" volume procurement not only affects local pharmaceutical enterprises, but also has a significant impact on multinational pharmaceutical enterprises Some multinational pharmaceutical companies choose to actively compete with local pharmaceutical companies to resist market changes For example, Sanofi implemented low-cost competition in the "4 + 7" national expansion, and in the quotations of Plavix and ambono, the domestic enterprises were eliminated with almost the same price as the generic pharmaceutical enterprises Last year's clopidogrel was awarded the bid by Shenzhen xinlitai, a generic pharmaceutical company But this year, Shenzhen xinlitai was out unexpectedly Sanofi, the original research drug, entered the market at a low price of 17.81 yuan In addition to the low price for market like Sanofi and accelerating the introduction of innovative drugs, there are many options to transform to innovation strategy For example, clariborne, an executive of MSD, said in a recent financial report conference call that innovative drugs constitute "two thirds" of the company's product portfolio in the Chinese market He stressed that although the "4 + 7" volume procurement expansion "is not conducive to mature products in the company's product portfolio", the company's shift to new market strategies will bring long-term benefits to the company Of course, some multinational pharmaceutical companies choose to divest mature pharmaceutical assets For example, in April this year, Lilly sold two antibiotics and factories to Yiteng Pharmaceutical Co., Ltd for us $375 million; in July, GSK China's target company, GSK Pharmaceutical (Suzhou) Co., Ltd., was proposed to acquire 100% equity by Chongqing Yaoyou, a subsidiary of Fosun Pharmaceutical Holding Co., Ltd., for no more than 250 million yuan; in September, Jiuzhou Pharmaceutical Co., Ltd planned to acquire Suzhou Novartis Pharmaceutical Technology Co., Ltd., a wholly-owned subsidiary of Novartis group Company, etc In general, the "4 + 7" volume procurement has a huge impact on the whole industrial chain of drug R & D, production, circulation and use in China The integration of the pharmaceutical industry and the great wave of Taosha have started In the future, the large-scale merger and reorganization of pharmaceutical enterprises will become a trend, and the weak enterprises will be eliminated naturally In order to enhance the competitiveness, enterprises must increase the variety reserve to form product echelon and diversified product pipeline, carry out division and cooperation in the field of drug research and development, production and circulation, and form specialized drug research and development, production and circulation enterprises, so as to complete the transformation and upgrading of drug enterprises.