The government has set the tone on whether implant teeth are included in centralized mining.
On January 10, Premier Li Keqiang presided over the executive meeting of the State Council. The meeting once again stressed that it was decided to normalize and institutionalize the centralized procurement of drugs and high-value medical consumables, so as to further reduce the medical burden of patients. In the next plan, the meeting mentioned that the centralized collection coverage of high-value medical consumables should be gradually expanded, and the centralized collection of orthopaedic consumables, drug balloons and dental implants concerned by the masses should be carried out at the national and provincial levels respectively.
This means that the intensive collection of implant teeth, which has attracted much attention in the industry, has been put on the agenda. Some people in the industry even believe that the intensive collection of implant teeth may be seen in 2022. Whenever dental implant collection is carried out, it can be predicted that for patients, centralized collection will reduce the price of tens of thousands of dental implants in the past and greatly reduce medical expenses. For the industry, centralized mining will inevitably affect the existing industry pattern and put forward new development requirements for relevant enterprises.
solve the problem of high price dental implant: from medical insurance to centralized mining
“The average treatment cost of an implant varies from 6000 yuan to 20000 yuan. If you plant a full mouth tooth, it is equivalent to buying a suite in the county.” During the two sessions in 2021, the proposal of a deputy to the National People’s Congress spoke about the pain of many people’s tooth planting, and tooth planting is also considered to be “huge profits”.
Dental implant is an important way to treat tooth loss. How to solve the pain point in price, the above proposal and many people in the industry have proposed to include dental implant into medical insurance payment. This reply clarified the direction of “basic insurance” of medical insurance, and explored centralized procurement in the future or by squeezing channels. At the same time, simplifying the charging items and limiting the independent pricing items and charging scale of public hospitals may limit the price and quantity of public hospitals, or benefit private institutions from the perspective of quantity, but the ad valorem direction is linked with public hospitals. At the same time, we believe that the local network mentioned in this reply or promote the high-priced consumables such as dental implants to enter the medical insurance payment in some areas with strong payment ability, so as to improve the penetration rate and promote the development of the whole industry.
On September 22, 2021, when the National Medical Insurance Bureau replied to the proposal on standardizing the cost of dental implant materials and including their treatment and service costs into medical insurance, it said that according to the regulations, all provinces (regions and cities) do not include glasses, dentures, artificial eyes and other instruments in the payment scope of basic medical insurance. In the future, the price items of dental medical services will be standardized, local governments will be guided to include implants in the scope of platform hanging network, and promote the sunshine and transparency of implant prices of various brands and squeeze out water.
At that time, Zheshang Securities Co.Ltd(601878) once proposed in a research report that this reply defined the direction of “basic insurance” of medical insurance, and explored centralized procurement by squeezing channels in the future.
Since the centralized purchase of drugs in the “4 + 7” pilot cities in 2018, the state has completed 6 batches of centralized drug purchase, which not only covers chemical drugs, but also includes patient groups and large amounts of insulin in the Sixth Batch. In addition, the centralized purchase of high-value medical consumables such as cardiac stents and artificial joints has also been implemented one after another. Drugs that have not been included in the national drug collection organization, such as Chinese patent medicine, intraocular lens and orthopedic trauma consumables, have also carried out alliance exploration in some provinces and regions. With the trend of normalization and institutionalization of centralized mining, the industry also laments that “everything can be centralized mining”.
Price reduction is the main theme of centralized purchase. For expensive dental implants, if the price can be reduced in this way, it is undoubtedly good news for patients. In fact, after the reply of the National Medical Insurance Bureau, various provinces and regions have mentioned the centralized collection of dental implants in different ways.
On November 17, 2021, Sichuan Pharmaceutical Machinery tendering and Procurement Service Center issued the notice on carrying out information collection of some oral high-value medical consumables products, and planned to carry out the application of relevant product information in stages from November 18. The declared product scope mainly involves oral implant system, specifically including oral implant, prosthetic abutment, implant repair accessories (including healing abutment, covering screw, transfer rod, scanning rod, substitute, repair base, abutment screw, abutment protective cap, temporary abutment), excluding denture, oral repair film, bone powder and other consumables.
On December 1, 2021, the public resources trading administration of Ningxia Hui Autonomous Region issued the notice on filling in the historical procurement data of oral medical consumables. According to the notice, according to the work arrangement of centralized volume procurement of oral implant system led by Sichuan Medical Security Bureau, the historical procurement data of oral medical consumables are now filled in.
The local movement around implant teeth is regarded as a major signal of intensive collection of implant teeth. Today, the national Standing Committee directly mentions that “intensive collection of dental implants at the national and provincial levels”, which undoubtedly releases a more direct signal.
the rules of centralized collection of implant teeth are unclear, or it helps to accelerate the replacement of domestic
The intensive collection of dental implants is stirring up a 100 billion market.
The consumables required for an implant include implant, implant abutment, crown, restoration materials, etc., in which implant is the core. According to a research report of Sealand Securities Co.Ltd(000750) July 2021, the number of dental implants in China is expected to be 4 million in 2020, with a compound annual growth rate of 30% from 2016 to 2020. According to the payment of 7400 yuan for patients with single implant at the consumer end, the market scale will be 29.7 billion yuan in 2020. According to the penetration rate of about 200 implants per 10000 people in developed countries and the current price of 50%, the market space of dental implants in China can reach 106 billion yuan. The dental implant market will grow rapidly in the next decade.
According to the Research Report of The Pacific Securities Co.Ltd(601099) securities in June 2021, the cost of dental implant surgery in the Chinese market is about 8000-22000 yuan, of which the cost of implant as the core material is the highest, generally 3500-12000 yuan, accounting for 50% of the total operation cost, followed by operation cost + anesthesia cost of 3000-5000 yuan (accounting for 25%), repair material of 1200-2500 yuan (10%) and implant abutment of 1500 yuan (10%), The crown is divided into porcelain teeth of 300-1000 yuan, or all ceramic teeth of 1000-2500 yuan (5%).
It is worth mentioning that in China’s 100 billion market value dental implant market, foreign brands from the United States, South Korea, Switzerland, Sweden, Germany and other countries account for the mainstream. Due to the import price increase, this is also considered to be one of the reasons for the high price of dental implants.
It is generally believed in the industry that in the future, with the centralized mining and landing of dental implants, it will be conducive to the substitution of domestic dental implant consumables, and the existing pattern dominated by imports is expected to be broken. Domestic dental implant consumables involve some listed companies, such as the product line of modern dentistry (3600. HK), including materials for fixed dentures such as crowns and bridges; The biomedical materials of Shandong Sinocera Functional Material Co.Ltd(300285) (300285) mainly include zirconia powder materials for denture, zirconia ceramic blocks and other related dental products; Yantai Zhenghai Bio-Tech Co.Ltd(300653) (300653) has oral repair film, oral bone powder and other consumables.
In addition to implant consumables manufacturers, medical institutions carrying out dental implants may also be subject to intensive collection of implants.
In October 2021, there was a market rumor that “a province in Southwest China will cooperate with other 9 provinces to collect implant teeth.” At that time, the stock price of Topchoice Medical Co.Inc(600763) known as “Yamao” fell sharply. According to the 2020 annual report, the main business of Topchoice Medical Co.Inc(600763) is medical services.
A pharmaceutical industry practitioner told the surging news reporter that in the past, the centralized purchase of drugs or other consumables was mainly used in public medical institutions, so the final impact of the centralized purchase results was the choice of enterprises in the public hospital market. The particularity of dental implants is that private medical institutions account for half of them, and the labor cost behind dental implants can not be ignored. In the future, the centralized collection of dental implants will be implemented to really benefit the people who need dental implants, and the specific rules also need to take this part of the market into account.
For the impact of intensive dental implant collection, at that time Topchoice Medical Co.Inc(600763) responded that it was an opportunity, not a crisis, for listed companies mainly providing oral medical services. The company will actively promote the concept of Tongce high, middle and low dental supermarket through the action of common prosperity, increase low-cost planting projects, and promote the company’s share in the low-cost planting market.
The person in charge of a private dental medical institution in China said that it is not surprising that implant teeth will enter the centralized collection. Sooner or later, there will be such a day. This may not be a bad thing for private medical institutions. On the one hand, the cost of purchasing consumables may decline. On the other hand, with the government’s attention to oral health, institutions will reduce the cost of some market education, and the cost of obtaining customers will further decline.
The above person in charge also mentioned that dental implant is a remedial measure for tooth damage to a certain extent. If we can pay attention to oral health from the early childhood stage and provide services for it, this part is also a promising place for private dental medical institutions.
The specific time and rules for centralized collection of dental implants are not clear, and it does not seem to have too much impact on relevant listed companies at present. As of the closing on January 11, Topchoice Medical Co.Inc(600763) was reported at 176.38 yuan, down 1.78%; Modern dentistry reported HK $5.28, up 0.19%; Shandong Sinocera Functional Material Co.Ltd(300285) was reported at 40.1 yuan, up 2.48%; Yantai Zhenghai Bio-Tech Co.Ltd(300653) was reported at 7.8 yuan, up 1.03%.
(source: surging News)
