"For example, a drug with a bid price of 17 yuan is 14.55 yuan if the price is reduced by 15%. In the case of constant production and circulation, the cost of each box of medicines is 2.55 yuan, and the annual sales volume is 1 million boxes. In the calculation, a single product will cause the company to have a revenue gap of 2.55 million yuan." Fang Ming, the person in charge of the southwestern district of a pharmaceutical company in Guangzhou, calculated the account for the reporter.
The introduction of the list of essential drugs and the subsequent formulation of relevant policies have played a decisive role in the price issue, which has caused some enterprises to be overwhelmed. The company’s response to the policy is “the impact of price reduction on the entire industrial chain cannot be underestimated. At present, manufacturers are brainstorming. We are negotiating two options: one is to launch multi-standard products, to reduce the price of the specification products to reduce the policy to cope with the policy, and the other is to reduce the price first and then wait for an opportunity to call back.†Fang Ming said very frankly.
The year-on-year decline in drug prices is a foregone conclusion
According to preliminary estimates by the national price department, after the publication of the basic drug list, the average price of basic drugs has dropped by about 10%. The essential drugs were sold at zero rate at the grassroots level, and 15% of the drug additions were cancelled. Adding the two together, the price is reduced by at least 25%. In addition, according to the regulations, all essential drugs are included in the basic medical insurance drug reimbursement catalogue, and the reimbursement rate is significantly higher than that of non-essential drugs.
Gu Yu, a professor at Peking University, believes that the state has set a national retail guide price, which stipulates that the retail price of each province and city should be within the range prescribed by the national retail guide price, which has little effect on the actual drug price.
Professor Zhao Jie, a medical reform expert at the Central Party School Research Office, said that after the publication of the Essential Drugs List, the price of medicines will drop, but whether the drug fees paid by patients will decrease is not necessarily the case. Because the hospital treatment costs include medical treatment fees, testing fees and drug charges, whether patients can enjoy the benefits brought by the essential drug list, subject to hospital treatment programs, only the use of basic drugs in the treatment program, reducing the use of non-essential drugs The patient can better enjoy the discount on the price of the drug.
Price leverage accelerates corporate restructuring
The changes in the terminal market will naturally react to the production enterprises and circulation links. Fang Ming told reporters: "In October, Yunnan began to invite bids. Now many dealers are looking for manufacturers to communicate, hoping to get influential varieties in the industry." Because it is not only an exclusive variety or a high-selling variety, manufacturers can have more say in retail prices. “Under the zero-price policy, distributors can only earn state subsidies and manufacturers’ rebates.â€
Yu Mingde, president of China Pharmaceutical (600056) Enterprise Management Association, said that after the implementation of the basic drug system, it is expected to increase the consumption of drugs by 160 billion to 170 billion yuan per year, and many pharmaceutical companies will benefit from it.
According to the National Bureau of Statistics, the total output value of the pharmaceutical industry in 2008 was 791.2 billion yuan, a cumulative increase of 25.23%. Among them, the sales revenue of the Chinese patent medicine industry was 177.9 billion yuan, a cumulative increase of 21.253%, and related companies that can enter the basic drug list will benefit.
Opportunities are only for those who are prepared, Shenyin Wanguo and many other institutions believe that regional large-scale generic drug companies and pharmaceutical circulation will also be concentrated, and leading enterprises will benefit greatly.
In the process of designing the basic drug system, due to the many links, it involves the adjustment of the interests of all parties. At present, domestic pharmaceutical production and operation enterprises are generally overcapacity. With the implementation of the national basic drug system, a large number of mergers and acquisitions may occur, and some enterprises with weak strengths will withdraw from the market.
Zhao Jie believes that as a center of medical reform, the hospital's use of essential drugs and non-essential drugs will affect the nerves of pharmaceutical companies. He said that some pharmaceutical companies that are usually close to the hospital will benefit more.
The “high price mark†in the provincial-level centralized bidding is the key
Gu Yu said that only when the company obtains a high price mark in the provincial-level centralized bidding, its drug sales volume is likely to be greatly improved.
Zhao Jie said that after the publication of the basic drug list, another major reform of the medical reform--public hospital reform will also follow. If the marketization of public hospitals is controlled, that is, the public welfare is enhanced, then the production and wholesale of medicines, Sales will be hit hard, and drug manufacturers may face a cold winter.
The introduction of the list of essential drugs and the subsequent formulation of relevant policies have played a decisive role in the price issue, which has caused some enterprises to be overwhelmed. The company’s response to the policy is “the impact of price reduction on the entire industrial chain cannot be underestimated. At present, manufacturers are brainstorming. We are negotiating two options: one is to launch multi-standard products, to reduce the price of the specification products to reduce the policy to cope with the policy, and the other is to reduce the price first and then wait for an opportunity to call back.†Fang Ming said very frankly.
The year-on-year decline in drug prices is a foregone conclusion
According to preliminary estimates by the national price department, after the publication of the basic drug list, the average price of basic drugs has dropped by about 10%. The essential drugs were sold at zero rate at the grassroots level, and 15% of the drug additions were cancelled. Adding the two together, the price is reduced by at least 25%. In addition, according to the regulations, all essential drugs are included in the basic medical insurance drug reimbursement catalogue, and the reimbursement rate is significantly higher than that of non-essential drugs.
Gu Yu, a professor at Peking University, believes that the state has set a national retail guide price, which stipulates that the retail price of each province and city should be within the range prescribed by the national retail guide price, which has little effect on the actual drug price.
Professor Zhao Jie, a medical reform expert at the Central Party School Research Office, said that after the publication of the Essential Drugs List, the price of medicines will drop, but whether the drug fees paid by patients will decrease is not necessarily the case. Because the hospital treatment costs include medical treatment fees, testing fees and drug charges, whether patients can enjoy the benefits brought by the essential drug list, subject to hospital treatment programs, only the use of basic drugs in the treatment program, reducing the use of non-essential drugs The patient can better enjoy the discount on the price of the drug.
Price leverage accelerates corporate restructuring
The changes in the terminal market will naturally react to the production enterprises and circulation links. Fang Ming told reporters: "In October, Yunnan began to invite bids. Now many dealers are looking for manufacturers to communicate, hoping to get influential varieties in the industry." Because it is not only an exclusive variety or a high-selling variety, manufacturers can have more say in retail prices. “Under the zero-price policy, distributors can only earn state subsidies and manufacturers’ rebates.â€
Yu Mingde, president of China Pharmaceutical (600056) Enterprise Management Association, said that after the implementation of the basic drug system, it is expected to increase the consumption of drugs by 160 billion to 170 billion yuan per year, and many pharmaceutical companies will benefit from it.
According to the National Bureau of Statistics, the total output value of the pharmaceutical industry in 2008 was 791.2 billion yuan, a cumulative increase of 25.23%. Among them, the sales revenue of the Chinese patent medicine industry was 177.9 billion yuan, a cumulative increase of 21.253%, and related companies that can enter the basic drug list will benefit.
Opportunities are only for those who are prepared, Shenyin Wanguo and many other institutions believe that regional large-scale generic drug companies and pharmaceutical circulation will also be concentrated, and leading enterprises will benefit greatly.
In the process of designing the basic drug system, due to the many links, it involves the adjustment of the interests of all parties. At present, domestic pharmaceutical production and operation enterprises are generally overcapacity. With the implementation of the national basic drug system, a large number of mergers and acquisitions may occur, and some enterprises with weak strengths will withdraw from the market.
Zhao Jie believes that as a center of medical reform, the hospital's use of essential drugs and non-essential drugs will affect the nerves of pharmaceutical companies. He said that some pharmaceutical companies that are usually close to the hospital will benefit more.
The “high price mark†in the provincial-level centralized bidding is the key
Gu Yu said that only when the company obtains a high price mark in the provincial-level centralized bidding, its drug sales volume is likely to be greatly improved.
Zhao Jie said that after the publication of the basic drug list, another major reform of the medical reform--public hospital reform will also follow. If the marketization of public hospitals is controlled, that is, the public welfare is enhanced, then the production and wholesale of medicines, Sales will be hit hard, and drug manufacturers may face a cold winter.
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