Stock Code: 002750 stock abbreviation: Kunming Longjin Pharmaceutical Co.Ltd(002750) Announcement No.: 2021-062 Kunming Longjin Pharmaceutical Co.Ltd(002750)
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Kunming Longjin Pharmaceutical Co.Ltd(002750) (hereinafter referred to as “the company”) recently participated in the quotation for centralized procurement of inter provincial alliance of Chinese patent medicines organized by the office of the leading group for centralized procurement of inter provincial alliance of Chinese patent medicines. According to the publicity of the results of planned selection of centralized procurement of inter Provincial alliance of Chinese patent medicines issued by the office of the leading group for centralized procurement of inter provincial alliance of Chinese patent medicines on December 21, 2021 , breviscapine for injection of the company’s products is planned to be selected by the inter provincial Alliance for centralized procurement. The relevant information is hereby announced as follows:
1、 Basic information of products to be selected
1. Drug name: breviscapine for injection
2. Specification: 10mg, 25mg, 50mg (calculated by scutellarin)
3. Main indications: promoting blood circulation and removing blood stasis, dredging collaterals and relieving pain. For stroke and its sequelae, coronary heart disease and angina pectoris
4. Benchmark price to be selected: 75.31 yuan / box (10 bottles / box, based on the 25mg specification of the quoted representative product, the price drop is 67%, and the prices of other specifications are reduced in equal proportion to the decline of the quoted representative product)
5. Proposed procurement cycle: two years (the procurement agreement is signed once a year)
6. Agreed purchase quantity: the distribution will be determined after the results of the proposed selection are publicized and there is no objection
7. Supply area: Hubei, Hebei, Shanxi, Inner Mongolia, Liaoning, Fujian, Jiangxi, Henan, Hunan, Hainan, Chongqing, Sichuan, Guizhou, Tibet, Shaanxi, Gansu, Ningxia, Xinjiang and Xinjiang production and Construction Corps (i.e. the centralized mining coverage area of inter provincial alliance)
2、 Impact of this selection on the company
According to the procurement announcement rules, after the proposed winning enterprise has no objection (the publicity period is up to December 24, 2021), its proposed winning product is determined as the winning product.
Longjin breviscapine for injection is the company’s core product. The sales revenue of this product accounts for about 26.54% of the company’s operating revenue in the first three quarters of 2021 (accounting for about 99.40% after deducting the revenue from pharmaceutical wholesale business), accounting for about 87.74% of the company’s operating revenue in 2020.
In the first three quarters of 2021, about 53.42% of the sales revenue of Longjin breviscapine for injection came from the coverage area of the provincial alliance, and about 46.46% of the sales revenue of the product in 2020 came from the coverage area of the provincial alliance. During the procurement cycle, medical institutions in the area covered by the centralized procurement of inter provincial alliance will give priority to the selected drugs in the centralized procurement of drugs. Compared with the original benchmark price, the proposed winning price of the company has decreased significantly, which may cause some pressure on sales performance, but it is conducive to improving drug accessibility, accelerating product access, improving market share and brand influence, and reducing the drug burden of patients.
3、 Risk tips
1. The publicity period of the proposed winning results of the alliance provinces is from December 22, 2021 to December 24, 2021. The winning results and prices are still uncertain.
2. The purchase contract related to the products to be selected has not been signed, the agreed purchase quantity is not clear, and the subsequent matters and the impact on the company are still uncertain.
The company will pay close attention to the progress of the matter and fulfill the obligation of information disclosure in time. Please make careful decisions and pay attention to investment risks.
It is hereby announced.
Kunming Longjin Pharmaceutical Co.Ltd(002750) board of directors December 22, 2021
