The pharmaceutical enterprise Guizhou Salvage Pharmaceutical Co.Ltd(600227) , which once offered the lowest price for winning the bid, is now suffering a double blow from the disqualification of products and the suspension of the company’s qualification to participate in the declaration of national centralized procurement.
On February 7, Guizhou Salvage Pharmaceutical Co.Ltd(600227) announced that due to the violation of the commitments made in the application materials and the relevant provisions of the national centralized drug procurement document (gy-yd2019-2), the joint procurement office decided to cancel the company’s qualification for glimepiride tablets and included Guizhou Guizhou Salvage Pharmaceutical Co.Ltd(600227) Pharmaceutical Co., Ltd. in the “list of violations”, The application qualification of the enterprise to participate in the centralized drug procurement activities organized by the state from January 29, 2022 to July 28, 2023 will be suspended for up to 18 months.
Meng Lilian, chief expert of Sichuan Tianfu Health Industry Research Institute, told the reporter of Securities Daily: “the selected drug ‘glimepiride tablet’ is a hypoglycemic drug, which is in Guizhou Salvage Pharmaceutical Co.Ltd(600227) It does not account for a large proportion of the company’s product library, so it will not have a great impact on the company’s operation in the short term. But the scale of diabetes in China is huge, and the market for hypoglycemic drugs is broad. We can see that long-term effects can not be underestimated.
Zhang Yi, founder and CEO of AI media consulting group, told the Securities Daily: “centralized drug purchase is one of the main channels for pharmaceutical enterprises to enter the circulation link, especially medical institutions. Once the qualification of winning the election is cancelled or suspended, the impact on the enterprise is not only in the ban period, but also on the brand reputation.”
Guizhou Salvage Pharmaceutical Co.Ltd(600227) is disqualified from centralized purchase
It is reported that Guizhou Salvage Pharmaceutical Co.Ltd(600227) glimepiride tablets are the second batch of selected drugs for centralized drug procurement organized by the state. The supply period is from April 2020 to April 2023. The winning regions are seven provinces (cities) of Shanxi, Shanghai, Jiangsu, Fujian, Guangdong, Guangxi and Hainan. After being disqualified, they cannot continue to supply to the above regions.
In 2021, glimepiride tablets entered the national organization for centralized drug procurement, with a total of 372.978 million tablets. The annual procurement amount was 16.4781 million yuan, accounting for 13.49% of the company’s pharmaceutical business revenue and 0.76% of the company’s total operating revenue. Meanwhile, the total operating revenue of the three drugs for which the company is conducting consistency evaluation in 2021 is 8.2433 million yuan (Unaudited), accounting for 6.75% of the company’s pharmaceutical business revenue and 0.38% of the company’s total operating revenue. A drug deemed to have passed the consistency evaluation has obtained the drug registration approval on December 23, 2021, and no operating revenue has been generated in 2021.
The company said that the suspension of production and sales of glimepiride tablets, the inclusion in the “list of violations” and the suspension of the application qualification for participating in national centralized procurement will have a certain impact on the company’s operating performance from 2022 to 2023.
According to the data disclosed in the announcement, the operating revenue of Guizhou Salvage Pharmaceutical Co.Ltd(600227) pharmaceutical glimepiride tablets in 2021 was RMB 2006.3 million (Unaudited), accounting for 16.43% of the company’s pharmaceutical business revenue and 0.93% of the company’s total operating revenue.
supervision shows warning signs to pharmaceutical enterprises
The reason why Guizhou Salvage Pharmaceutical Co.Ltd(600227) was disqualified from centralized purchase was related to the fact that the hypoglycemic drug “glimepiride tablets” did not meet the drug production quality management standards in the production process.
From December 23, 2021 to December 25, 2021, during the flight inspection of “glimepiride tablets” carried out by the State Food and Drug Administration and Guizhou food and drug administration, it was found that Guizhou Salvage Pharmaceutical Co.Ltd(600227) had serious defects in plant maintenance, equipment cleaning and stability investigation.
Previously, in the bidding for centralized drug procurement, Guizhou Salvage Pharmaceutical Co.Ltd(600227) offered the lowest price of 0.052 yuan / tablet in order to win the bid for the varieties of glimepiride tablets.
After winning the bid at the lowest price, it was disqualified due to problems such as non-standard production quality management. The punishment of Guizhou Salvage Pharmaceutical Co.Ltd(600227) also lit a warning board for other pharmaceutical enterprises.
“At present, there are three main reasons why pharmaceutical enterprises have been disqualified from national centralized procurement, namely illegal operation, quality problems and supply interruption. If enterprises encounter these problems, they may be disqualified from participating in centralized procurement.” Shi lichen, founder of Beijing Dingchen Management Consulting Co., Ltd., told the Securities Daily.
Last year, North China Pharmaceutical Company.Ltd(600812) was included in the “list of violations” by the joint procurement because of the interruption of supply and centralized procurement, and was unable to participate in the national drug centralized procurement activities for nine months. Soon after, Shandong Province also announced the punishment result, which rated North China Pharmaceutical Company.Ltd(600812) dishonesty as “serious”, suspended his qualification for ibuprofen sustained-release capsules to hang on the Internet for three years, and disqualified him from participating in the centralized drug procurement activities organized by Shandong Province from August 11, 2021 to May 10, 2022.
“Canceling or suspending the qualification of centralized purchase will be a normal supervision that pharmaceutical enterprises need to face in the future. Pharmaceutical enterprises should play a twelve point spirit and pay attention to the legal and compliance issues related to product quality.” Zhang Yi pointed out.
Meng Lilian believes that the cancellation of centralized purchase of Guizhou Salvage Pharmaceutical Co.Ltd(600227) also sends a signal that under the background of China’s Pharmaceutical General drugs in the buyer’s market, it may become normal to be punished for problems such as non-compliance with production specifications.
