Recently, there have been frequent bad news in the pharmaceutical sector. Yaoming biology has been included in the unverified list by the U.S. Department of Commerce, which has depressed the overall mood of the pharmaceutical sector. Today, the market has ushered in bad news. The national health insurance administration announced that the scope of centralized procurement has been expanded to Chinese patent medicine. This news continued to decline in the Chinese medicine sector after the afternoon.
As of press time, the Chinese medicine sector as a whole fell by 2.12%, while Chinese traditional medicine (00570. HK) and Beijing Tongrentang Co.Ltd(600085) national medicine (03613. HK) both fell by more than 5%.
According to the financial Associated Press, the National Information Office held a regular policy briefing today. Chen Jinfu, deputy director of the National Medical Security Bureau, mentioned at the meeting that this year, the National Medical Insurance Bureau will guide local governments to promote the investigation and filling of omissions and deficiencies around large varieties and common diseases according to clinical needs, and strive to achieve more than 100 provincial centralized varieties in each province, High value medical consumables can cover 5 varieties. This year, in accordance with the principle of “one product and one policy”, we will carry out centralized procurement of high-value medical consumables for consumables with many complaints from the masses and large space for price adjustment. This year, we are going to carry out centralized procurement of orthopedic spine consumables. In the local area, further exploration should be carried out in other fields, including Chinese patent medicine. Based on the alliance procurement organized by some provinces last year, the scope should be further expanded in an orderly manner this year.
In fact, the centralized procurement of traditional Chinese medicine was not proposed for the first time. In mid January this year, Hubei took the lead in the centralized procurement and bid opening of 19 provincial alliance Chinese patent medicines, with a procurement scale of nearly 10 billion yuan. Finally, 97 enterprises and 111 products were selected, and the average price of the selected products decreased by 42.27%, with the largest decrease of 82.63%.
However, in the past, the national drug centralized bidding and procurement did not involve Chinese patent medicines, because many Chinese patent medicines were produced exclusively, the formula was confidential, and there was no competition from similar products.
According to relevant reports, there are great differences in the quality of many traditional Chinese medicines, often from different places of origin, with wide differences in prices, such as saffron, donkey hide gelatin, etc., and the popularity of products outside the place of origin has decreased sharply. The quality is affected by many factors such as origin, climate and variety, so the evaluation standard cannot be unified, and the price comparison is more difficult.
Although the participation of traditional Chinese medicine in the national centralized procurement scope has a great impact on relevant companies, recently China Greatwall Securities Co.Ltd(002939) pointed out that the increased support of traditional Chinese medicine medical insurance policy is conducive to promoting the inheritance, innovation and development of traditional Chinese medicine and promoting the large-scale production of traditional Chinese medicine in the hospital. Under the new situation of medical insurance support, centralized purchase and landing and the general rise of raw materials, traditional Chinese medicine enterprises with good cost and quality control may face a reshuffle, and enterprises with good cost and quality control have a greater competitive advantage.
