In 2022, whether national mining or local centralized mining, “speed up and surface expansion” will become the core keyword of volume procurement.
2022 centralized mining speed increase and face expansion
On January 10, the executive meeting of the State Council opened the curtain of “speed-up and expansion” of centralized procurement of drugs and high-value medical consumables. Subsequently, from national mining to local volume procurement, there is no doubt that “speed-up and expansion” has become the key word of volume procurement in 2022.
By further promoting centralized procurement with volume, we will continue to reduce pharmaceutical prices and benefit more patients. This is not only a key measure to solve the problem of “expensive medical treatment”, but also a major change that forces the high-quality development of China Meheco Group Co.Ltd(600056) industry.
In order to deeply analyze the current changes in the pharmaceutical market, we launched this topic at the beginning of 2022, hoping to explore the essence through the phenomenon and provide some help and thinking for the development of the industry and enterprises.
Recently, the seventh batch of national centralized procurement has been started. According to the circular on submitting the procurement data related to the scope of the seventh batch of centralized drug procurement organized by the state issued by the joint drug procurement office of the state organization, the seventh batch of national procurement involves 59 varieties and 208 product specifications. There is no lack of omeprazole injection, meropenem, metoprolol and other large varieties with the magnitude of 100 million yuan.
The notice shows that the volume reporting was officially launched on January 26, and the provinces imported the historical purchase volume data of 2021 for the reference of medical institutions. Medical institutions must fill in the relevant drug purchase demand as required, and submit the data before 24:00 on February 16. Before 17:00 on February 25, all provinces need to complete the review of relevant drug purchase demand.
In recent years, volume procurement has become a hot word in the industry, and major actions have been taken at the national level. After the general office of the State Council issued the opinions on promoting the normalization and institutionalization of drug centralized volume procurement in January 2021, the executive meeting of the State Council decided to normalize and institutionalize the centralized volume procurement of drugs and high-value medical consumables on January 10, 2022. It is clear that in the next step, we should promote the normalization and institutionalization of centralized volume procurement, speed up the expansion, and continue to reduce medical prices to benefit patients.
It can be seen that in 2022, whether national mining or local centralized mining, “speed up and surface expansion” will become the core keyword of volume procurement.
Volume procurement “speed up and surface expansion”
According to incomplete statistics, up to now, the national centralized mining has carried out six batches and seven rounds (including “4 + 7 expanded centralized mining”), covering 234 kinds of drugs, involving an amount of about 240 billion yuan, accounting for about 30% of the purchase amount of chemical and biological drugs in public medical institutions. Except for the Sixth Batch of special centralized collection of insulin, the first five batches are aimed at the field of chemical drugs, covering 218 varieties.
In addition, according to iqvia data, the first five batches of national centralized drug purchase involve 218 chemical drug varieties, accounting for less than 3% of the drug varieties in hospitals across the country, but the market scale involved is about 220 billion yuan, accounting for about one quarter of the total sales of hospital drugs in China, including more than 30% of the sales of chemical drugs, and radiates a broad off-site market. Injection drugs are the largest dosage form of hospital drugs in China, with a market capacity of more than 500 billion yuan. In addition, in the first three batches of centralized purchase, oral solid preparations are the main force of purchased varieties. However, with the official release of the guidance document on injection consistency evaluation in May 2020, the over evaluation progress of injection products broke out in the second half of 2020, and the number of injections increased significantly from the fourth batch of centralized purchase, which shortened the time interval for the start of a new batch of national purchase.
Chai Yan, director of iqvia aikunwei management consulting, said that it is not difficult to find from a series of data that after the effectiveness of national volume procurement has been fully verified, the time and conditions for further expanding the scope of procurement are ripe, and China’s drug volume procurement is entering a new stage of in-depth promotion.
The “speed-up and surface expansion” of centralized mining is a major signal released at the beginning of this year. On January 10, the executive meeting of the State Council 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. The meeting pointed out that in recent years, the reform of centralized procurement of drugs and high-value medical consumables has been continuously promoted, and the market-oriented mechanism has effectively squeezed the falsely high medical prices. By the end of last year, a total of 260 billion yuan of medical insurance and patient expenditure had been saved. At the same time, it has also promoted pharmaceutical enterprises to devote more energy to product research and development and improve quality. In the next step, we should promote the normalization and institutionalization of centralized volume procurement, speed up and expand the scope, and continue to reduce medical prices to benefit patients.
First, focusing on chronic diseases and common diseases, we will continue to promote the centralized purchase of drugs at the national level, and all localities will carry out provincial or inter provincial alliance procurement of drugs purchased outside the national centralized purchase. By the end of this year, the national and provincial centralized procurement of drugs will reach more than 350 in each province. Second, gradually expand the coverage of centralized collection of high-value medical consumables, and carry out centralized collection of orthopaedic consumables, drug balloons and dental implants concerned by the masses at the national and provincial levels respectively.
According to the decision-making and deployment of the national regular meeting, the national centralized procurement with volume will be upgraded again in 2022, not only the number of centralized procurement will increase, but also the categories of centralized procurement will be expanded again.
\u3000\u3000 “The next development path of volume procurement has been basically clear, that is, the national and local levels will promote it in layers, carry out it in batches and implement policies by classification, take the lead in covering the varieties with large consumption and high purchase amount in the catalogue of basic medical insurance drugs, constantly innovate and improve the procurement rules of non over rated drugs, biological products and Chinese patent medicines, explore the appropriate procurement methods of shortage drugs and orphan drugs, and gradually cover them All kinds of drugs listed in China that are clinically necessary and of reliable quality should achieve the long-term policy objectives that should be fully adopted. ” Chai Yan said.
How to deal with the normalization of centralized purchase
In the next five years, according to the national medical security plan for the 14th five year plan, each province should purchase more than 500 varieties of drugs and more than five categories of high-value medical consumables through national and provincial centralized belt procurement. Centralized belt procurement will become the leading mode of public hospital procurement.
Then, with the normalization, institutionalization and accelerated expansion of volume procurement, how will enterprises deal with it?
At present, local enterprises have an absolute advantage in volume procurement, while multinational enterprises are constantly adjusting their strategies and actively responding. For multinational pharmaceutical enterprises, the measures to deal with centralized procurement mainly include two aspects. On the one hand, most multinational enterprises choose to give up the bidding of centralized procurement and make efforts in the non-public market to ensure their price system and revenue; On the other hand, innovative models and new channels have become the main battlefield for multinational pharmaceutical enterprises to collect relevant patents and protect the original drugs.
As for local pharmaceutical enterprises, they often choose to actively expand their commercial advantages before being included in centralized procurement. At the same time, actively explore innovative models and new channels to prepare for the development of non-public markets in the future.
Previously, Hua Xuewei, deputy director of the China Meheco Group Co.Ltd(600056) Industrial Information Center, pointed out to the 21st Century Business Herald that when the centralized procurement was launched in 2018, many enterprises were very upset and did not understand it. It was not until 2021 that the state office and development civilization really wanted to promote the normalization and institutionalization of the centralized drug procurement system that the industry began to accept it. Under the whole premise, how to comply with the policy and adjust the strategic direction of enterprise development is a subject that all enterprises need to consider.
In addition, Shi Wang, senior vice president of ogalon global and President of China, said in an interview with 21st Century Business Herald that in the context of centralized mining, it is also very important for pharmaceutical enterprises to diversify their sales channels. “In recent years, a number of medical reform policies have been implemented continuously in the pharmaceutical environment. In this process, we have to realize that we need to change the traditional playing method in the commercial layout and build the professional cognition of patients. Of course, we will face a lot of pain from the traditional hospital market to the multi-channel layout of retail pharmacies and online e-commerce Point. But it is undeniable that changing the current situation and carrying out multi-party cooperation has become a major trend. ” Shi Wang said.
