“A mouthful of teeth equals a BMW” used to be the image metaphor of “planting teeth is expensive”, which may become history in the future.
On February 11, the State Council Information Office held a regular policy briefing of the State Council to introduce the progress of deepening the reform of centralized procurement of drugs and high-value medical consumables. It mentioned the centralized procurement of dental implant consumables. The National Medical Insurance Bureau said that it would strive to launch the alliance reform of local centralized procurement of dental implants in the first half of the year.
In addition, Chen Jinfu, deputy director of the state medical security administration, said at the briefing that from the cumulative results of the three-year reform, the state has saved more than 260 billion yuan by organizing centralized procurement. At the same time, the National Medical Insurance Bureau said that it would speed up and expand its coverage, moderately compete according to the market supply, and do not pursue the lowest price.
moderate competition according to market supply
do not pursue the lowest price
At the regular policy briefing held by the state information office on the 11th, it also made important explanations on the “centralized procurement rules” and other related issues.
Chen Jinfu, deputy director of the National Medical Security Bureau, introduced at the meeting that centralized procurement is a major institutional innovation and a dynamic balance of multiple objectives.
at the institutional level, we must adhere to volume procurement, ensure quality, promote innovation driven, stabilize supply and ensure clinical use.
Around these aspects, a series of institutional supporting policies have been formed, including a series of processes of medical insurance prepayment, surplus reward, distribution guarantee and settlement. Next, the national medical insurance bureau should strengthen the platform construction, make it serve the market, medical institutions and enterprises, and carry out professional platform operation. These cannot be deviated from either now or in the future. Volume purchase is the core of the system. If “follow the price but not the volume”, the enterprise can not compete with the price by volume, and it is impossible to implement effective cost accounting. It also has to go to the hospital, which increases the operating cost and leaves room for profit seeking.
At the rule level, bidding rules are set for specific varieties and competition patterns. For example, bidding rules, volume ratio, agreement period, who will report the volume and who will choose the volume in the middle of the volume, all of which should be carefully designed for varieties.
For the varieties with sufficient competition, such as chemical drugs, the agreed procurement volume basically reaches more than 80%. The greater the agreed procurement volume, the higher the market coverage of the bid winning products and the greater the benefit of the masses.
At the same time, we should appropriately compete according to the market supply. the national medical insurance bureau does not pursue the lowest price and resolutely opposes running bidding, which can not achieve the balance of multiple dynamic goals. the national medical insurance administration does not specifically anchor the international lowest price, because China is on the road to common prosperity. Chinese people can also eat good drugs, and the medical insurance fund can afford such drugs with reasonable prices. Therefore, the design of this competition rule actually has a mechanism of reasonable price adjustment to make the market find value and make the fair bidding of enterprises more reasonable.
state food and Drug Administration: no quality abnormality was found in the selected varieties of national centralized procurement
At the meeting, Li Maozhong, head of the drug supervision and Administration Department of the State Drug Administration, introduced that the State Drug Administration has always regarded the quality supervision of centrally selected products as the top priority of drug supervision, and took many measures at the same time.
In terms of strengthening the quality supervision of drugs selected in centralized procurement, supervise and urge the enterprises to rectify the defects found in the supervision and inspection in time; Once violations are found, they shall be seriously investigated and dealt with according to law. Up to now, according to the results of product sampling and adverse reaction monitoring, no quality abnormality has been found in the selected varieties of national centralized mining.
In terms of quality supervision of high-value medical consumables selected in centralized mining: list the coronary stents, artificial joints and other products selected in centralized mining as the focus of quality and safety risk investigation and treatment in 2021, and supervise enterprises to comprehensively investigate potential risks. At the same time, the deployment of coronary stents and artificial joints and other production enterprises to carry out flight inspection, the inspection results are generally good.
medical insurance bureau: strive to launch in the first half of the year
alliance reform of local centralized collection of dental implants
At the meeting, Chen Jinfu, deputy director of the State Medical Security Bureau, said that there was a lot of controversy and criticism about the centralized purchase of dental implant consumables. Now it seems that dental implant is an important way to repair missing teeth, and the social demand is also great. Of course, medical institutions also provide a lot of services.
Therefore, we think that starting from local exploration and deployment since the beginning of last year, Sichuan has organized an inter provincial alliance to study the procedures of centralized dental implant collection. Now the scheme is basically mature, and we have widely listened to the opinions of clinical, enterprises and local governments. We are ready to launch such an alliance reform of centralized dental implant collection in the first half of this year. In fact, it is also a layout led by the state, A centralized mining method for dental implant exploration.
In fact, the more important thing for centralized procurement in the future is the rules. The characteristics of different bidding objects are very complex. They need to meet the requirements of product quality and clinical needs, and effectively enable enterprises and patients to share the results of the reform.
In recent years, “beauty economy” has directly driven the strong growth of China’s oral service market. According to the data of 2020 China dental industry report, the number of dental implants in China in 2020 was about 4.06 million, which is one of the fastest growing dental implant markets in the world. The scale of Chinese dental implant market has been nearly 160 billion yuan. according to another data, China’s oral care service market increased from US $13.2 billion in 2015 to US $26.2 billion in 2020, with a CAGR of 14.8%, and is expected to reach US $75.2 billion in 2030. The CAGR from 2020 to 2030 is expected to be 11.1%.
Attracted by the deterministic growth, many investors have stepped up the dental track, especially the dental medical service institutions in the downstream. However, behind the fanatical capital, the greater test will be whether the entrants can spend their money on the blade, whether to continue and increase investment in “horse racing circle” style stores, or build and optimize information technology infrastructure, Or provide fresh and differentiated services for patients.
At present, China’s dental implant market is dominated by imported brands, Nanfang Daily reported. The research report shows that the positioning of domestic implants is similar to that of Korean brands, but it started late. At present, the market share is expected to be 7%.
There has long been a rumor about the inclusion of dental implants in the centralized mining market. In August 2021, Ningbo City, Zhejiang Province issued the plan on further clarifying the dental implant payment items paid by medical insurance accounts over the years (Exposure Draft), which mentioned the proposed adjustment of the overall medical insurance payment standard of dental implant projects, triggering a discussion on the centralized purchase of dental implants.
On November 17, 2021, Sichuan Pharmaceutical Machinery bidding and Procurement Service Center issued the notice on information collection of some oral high-value medical consumables. Since then, Zhejiang, Ningxia and other places have also issued similar notices to fill in the historical procurement data of oral medical consumables.
“It must be good for domestic dental implant brands to be included in centralized purchase.
”Ouyao believes that at present, implant teeth in public hospitals are still dominated by imported brands. If domestic implant teeth can be first used in public hospitals after centralized collection, it will help accelerate the localization of implant materials.
Ou Yao pointed out that at present, the domestic dental implant industry is in an awkward position. In the past, mature European and American imported high-end brands basically monopolized the market, and then Korean low-end imported brands competed for survival space at low prices. “At present, there are at least a dozen domestic dental implant brands, but it has been difficult to break the market pattern.”
Qiao Jianbai, chairman of Zhuhai Jordan Technology Co., Ltd., believes that imported brands that have occupied a large share of the market may not be willing to participate in centralized mining, and Korean implants and domestic brands are more likely to explore the market through centralized mining. However, domestic brands that purely imitate foreign technology do not have market competitiveness. In order to achieve “overtaking in corners”, domestic implants must realize technological innovation in order to win a place in the market.
centralized mining hit A-share “Yamao”
has fallen more than 64% in less than a year
As the leading target of A-share stomatology department Topchoice Medical Co.Inc(600763) , recently, the total market value has shrunk significantly, the controlling shareholder has supplemented the pledge, and the dental implant business is facing centralized purchase. The centralized collection of dental implants or Topchoice Medical Co.Inc(600763) share price is the main fuse for the continuous adjustment.
Last year, the national medical insurance bureau pointed out that places with conditions should formulate reasonable payment standards according to their own economic development level and fund affordability; Give full play to the role of commercial insurance, and study and explore the feasible path of bringing dental projects into the payment scope of commercial insurance.
According to the performance disclosure information of the third quarter of 2021, the business growth was 44.16% and the net profit growth was 55.09%. meanwhile, dental implant business accounts for 16.47% of the total operating revenue. in contrast, in the 2021 semi annual report, Topchoice Medical Co.Inc(600763) operating revenue increased by 74.81%, and the net profit attributable to the parent company increased by 141.16%, with a large decline in growth.
In the subsequent announcement of changes, Topchoice Medical Co.Inc(600763) said for the self inspection of the company’s operation:
In terms of performance, mainly due to the impact of covid-19 epidemic in the first quarter of 2020, the demand of customers for medical treatment was released in the second and third quarters, and the year-on-year base of single quarter in the third quarter of 2020 was higher;
It is possible for the industry to participate in “centralized procurement”. In September 2021, the market discussed a wide range of issues such as centralized collection of dental implants, and customers’ implant needs were on the sidelines and delayed treatment.
According to the Securities Daily, in the face of policy changes, Topchoice Medical Co.Inc(600763) previously told reporters that the centralized collection of dental implants has little impact on the company’s current business. “The company is not a dental implant manufacturer. Centralized mining has reduced the cost of the company to a certain extent.” In the past, the company’s dental implant business was mainly aimed at medium and high-end customers. With the publication of the brand catalogue of dental implant in Ningbo, the company also carried out medium and low-end dental implant business. “Relatively speaking, dental implants are mainly imported brands.”.
According to the securities times, before the centralized purchase notice was confirmed, there were differences in the judgment of prescient institutions on the prospect of Topchoice Medical Co.Inc(600763) . Wind statistics show that as of June 30, 2021, Topchoice Medical Co.Inc(600763) has obtained a total of 81.42 million shares of the fund, while by December 31, 2021, the fund’s shareholding in Topchoice Medical Co.Inc(600763) has decreased to 41.3 million shares.
According to the third quarterly report of 2021, Topchoice Medical Co.Inc(600763) was reduced by many institutions. Among them, e Fonda’s medium and small cap withdrew from the top ten current shareholders and Hong Kong Central Clearing Co., Ltd. reduced its holdings of 2.52 million shares.
With the emergence of differences, the once strong Topchoice Medical Co.Inc(600763) scenery is no longer, and the company’s share price is falling endlessly.
As the leading target of A-share stomatology department, Topchoice Medical Co.Inc(600763) , the total market value in June 2020 was less than 50 billion yuan. However, since then, the company’s share price started the open listing mode: in a year, that is, June 2021, the company’s share price continued to rise, and the total market value once rose by more than 130 billion yuan. However, in less than a year, the total market value of Topchoice Medical Co.Inc(600763) has returned to the starting point. As of February 11, 2022, the total market value of is about 47.676 billion yuan, and the share price is reported at 148.69 yuan, down 64.7% from the high of 42.199 yuan on June 30, 2021, and the market value has shrunk by more than 87.7 billion yuan.
According to Securities Daily, Li Yifeng, chief researcher of Guangzhou pebble investment pharmaceutical industry, told reporters, “Short term centralized purchase has a certain impact on the profits of oral chain institutions. By limiting the independent pricing items and charging scale of public hospitals, it indirectly suppresses the prices of private institutions. The structural adjustment of volume for price needs to be verified by the market. Therefore, there is uncertainty in the company’s performance and there will be a process of returning to rationality in valuation.”
Topchoice Medical Co.Inc(600763) was established in 1996 and listed in 2006. It is the first A-share listed company with oral medicine chain operation as the main mode.
In 2006, taking advantage of the opportunity of Hangzhou stomatological hospital to start the reform of public hospitals, LV Jianming bought 100% equity of Hangzhou stomatological hospital with 102 million yuan, started the expansion on this basis, and gradually formed the mode of “regional general hospital + branch hospital”.
