Non Commentary Drugs Are The First To Purchase Insulin In Wuhan. The Proportion Of Foreign Companies Entering The Market Is Nearly 60%.

A few days ago, the Wuhan pharmaceutical and equipment joint procurement office issued a notice. Wuhan's first batch of 45 quantity purchase varieties will be formally implemented in May 1st.

According to the notice, the members of the union should clean up the inventory of the relevant units and the relevant names of the generic names, make inventory cleaning for the non selected varieties, and formulate the procurement plan for the selected varieties after May. At the same time, before the formal implementation, the selected enterprises need to make good preparations for the production and supply of selected varieties and distribution enterprises, and establish and perfect distribution channels in Wuhan.

The Wuhan purchase plan has attracted the attention of the industry due to the incorporation of non over rated drugs and competitive varieties of insulin into the procurement range.

The meaning of "quantity purchase" is to really lower the price of drugs. Therefore, in the case of consistent drug quality, that is, the technical standard level is consistent, the lowest price can ensure the cost of medical insurance and the lowest price, but in the early stage of the procurement of insulin in Wuhan, the group allocated the market share according to the price reduction range. In April 15th, Shi Lichen, founder of Ding Chen medical consultation, told reporters in an interview with the economic report in twenty-first Century that Wuhan is now in the process of carrying out quantitative purchases. He is not optimistic about its prospects. However, Wuhan will first collect the drugs that are not evaluated, which will be borrowed from other regions.

Insulin controversy

Of the 44 varieties (excluding insulin) that had been purchased by quantity, 40 had successfully negotiated. Among the four varieties that were not listed, only one Roche foreign company had an average decline of 31% compared with the lowest price in the country, the highest decrease of 93%.

As a matter of fact, the purchase of procurement in Wuhan has been controversial because of the strong willingness of foreign enterprises to participate in the tender stage. However, because of its large market share and intense competition, insulin has always been the focus of attention in the industry.

According to the successful results of this disclosure, a total of 21 different manufacturers of different types of insulin have been selected in the large variety of insulin. Among them, 15 of them have won the bid, mainly from the international pharmaceutical giants novo Norde China and Lilly Suzhou, accounting for nearly 60%.

Previously, a total of 10 enterprises including novo Nord, Senofi, Lilly trade, Lilly Suzhou and domestic enterprises Tonghua Dong Bao, Hefei Tian Mai, Sansheng pharmaceutical company, Zhuhai Federation and other enterprises were involved. They were divided into 7 groups according to the onset time of insulin to bargain. In contrast, the only finalists were novo Nord, Jiangsu Lilly and domestic enterprises Tonghua Dong Bao and Hefei Tian Mai. Among them, Novo Nordisk, China's Lilly Suzhou and Tonghua Dong Bao are three parts of the world.

"This type of insulin has always been very controversial. It belongs to the field of fierce competition between domestic and foreign pharmaceutical companies. The standard of setting up prices for collection and collection is simply not possible. Because the price gap between domestic and international medicine is too large, it will have advantages for foreign enterprises. " Shi Lichen told the economic news reporters in twenty-first Century that the price should be relatively reasonable according to the actual price.

In Shi Lichen's view, the winning bid showed that the phenomenon of more foreign enterprises and less domestic enterprises in the single category of insulin also confirmed this phenomenon.

However, according to the previous public bidding information, this Wuhan purchase quantity of 7 groups of insulin total procurement volume is 1 million 705 thousand and 690, the market size is about 130 million yuan. The gross domestic product of the domestic insulin market was roughly estimated at 20 billion yuan in 2018, accounting for only 0.7% of the total market. That is to say, the pattern of the overall insulin market is less affected.

Antecedent trial of non over rated drugs

On the other hand, due to the initial test of the purchase of drugs beyond the national scale, including the purchase of non over rated drugs, it is regarded as an exploration of the national medical insurance department for squeezing the price of more medicines.

And in order to dispel the concerns of participating companies in the nationwide sale price of shortlisted drugs, Wuhan has not announced the purchase price with the volume purchase.

According to the detailed rules promulgated previously, Wuhan will divide the varieties into the original research and non original research, and divide them into two groups, namely, the same name, the same dosage form, the same specification and the quality level of all enterprises, that is, the sum of the quality level and the total dosage of the product is 50% and less than 50%, and the price reduction is 20% and 10% again on the basis of the lowest price in the country. Therefore, it is very difficult for pharmaceutical companies to avoid competition in the same group through different dosage forms and specifications.

However, the classification of the varieties into original research and generic drugs makes the varieties that have not passed the consistency evaluation enter the scope of the tender, which is an innovation in the previous implementation.

A local medical practitioner in Wuhan explained to the economic news reporters in twenty-first Century: "on the one hand, the progress of conformance evaluation is slow, and it can not keep up with the growth demand of the quantity purchased; on the other hand, due to the impact of the epidemic, this year's medical insurance fund is under great pressure. More varieties will be brought into quantity, and the price will be reduced, which will relieve the pressure of medical insurance payment.

But at the same time, for pharmaceutical companies, they will bear more pressure, and the reduced price space will be directly transformed into the cost of pharmaceutical companies.

In the view of these people, the current three batch of procurement by the state health insurance bureau has formed a very mature and feasible plan and experience, especially the third batch, taking into account the capacity of each enterprise and the safety of drug use in the country. "The Wuhan model actually loosens the entry threshold on this basis, implements the mechanism of directional negotiation, and ends with the aim of further squeezing the price of medicine."

As the downward pressure on the economy further increases this year, the Wuhan model will be used for reference to the local purchasing of large quantities of non commentary varieties.

Shi Li Chen also pointed out: "at this point, Wuhan really takes a step forward. At this year's national level and local level, the expansion of procurement varieties will accelerate with regard to varieties that are not consistently evaluated. The cost of medical insurance is nearly about 20000000000 Yuan, which is still continuing. Economic factors will accelerate the expansion of varieties.

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