Spread Of Essential Drugs At Low Price: Competition For Fixed Production By Pharmaceutical Companies

In fact, the related work has already been completed, including identifying 41 varieties, and going to the enterprise to investigate and verify the cost price.

However, the cost of the enterprise drawn up by the NDRC is much higher than the tender price quoted by the current governments.

At present, under the condition of no supporting policies, the unified pricing of essential drugs is still difficult to implement. "

In September 25th, a person close to the national development and Reform Commission revealed that the unified pricing has ended in the NDRC level, but it has not yet started because of the above reasons.

Under the background of "uniform pricing of basic drugs", some large pharmaceutical companies who had abhorred the "low price winning bid" began to take the winning bid strategy at low price throughout the country in order to win the opportunity of "designated production" and expand rapidly and occupy the main market share.

Our reporter obtained a unified priced product catalogue, which involved antibiotics, including ceftriaxone, ampicillin, penicillin and cefazolin.

And large pharmaceutical companies are bidding for those products.

Unified

The most difficult point of unified pricing is how to link up with the tendering and purchasing of various provinces and municipalities.

"This round of cost verification work of the NDRC began in the second half of this year, and went to the large leading enterprises such as Harbin, Shi Yao and Hua Yao to investigate and find out the cost of production."

A large pharmaceutical company said that in July, the head of the national development and Reform Commission's price office went to the company to investigate the cost of basic drugs, which was used as a basis for unified pricing.

The unified pricing of essential drugs, that is, the centralized purchase of essential medicines in the future, for the unified pricing products, "only recruit quality and service, no price".

At that time, the industry had the most intense controversy about winning the bid for the "Anhui model" at a low price.

While some cheap old drugs win the bid at a low price, and the profits are slender, the enterprises give up their production. This example shows that there is a hidden danger in the "low price" of drug prices.

The NDRC's move conveys a signal that the trend of tendering of basic medicines will be changed.

In September, the NDRC held a special meeting to consult the production enterprises on the opinions on the issue of the formulation of a unified price for essential drugs (Draft). It said that the "unified price" should be formulated according to the general name of drugs according to the principle of reasonable compensation, reasonable profit and the actual price of the market; the unified pricing variety should be determined in batches; the varieties of national unified pricing should be implemented; in principle, the exclusive varieties of the essential medicines and the varieties that had been basically stable and supplied with sufficient price after repeated centralized bidding and purchase; and the number of varieties produced should be successful 3 times in more than 2/3 provinces and cities nationwide.

At the same time, when purchasing unified pricing products, medical institutions must purchase at the same price, and the basic medical and health institutions that implement the basic drug system will be sold at a uniform price.

The former said that the unified pricing pilot is designed to prevent quality problems caused by low price competition, and encourage production enterprises to turn price competition into quality, brand competition.

Through unified pricing, it will play a certain role in alleviating the chaos that may occur in bidding in all places.

The national price assessment center of the national development and Reform Commission held a unified pricing forum in Beijing on August 11th and 12, respectively.

One person involved in the meeting said that the first batch of essential drugs to be unified priced was about 41.

The most difficult point of unified pricing of basic drugs is how to link up with the existing essential medicines in various provinces and municipalities.

"The NDRC also found that the loss of enterprises does exist."

The participants said that the cost of production is not difficult to understand. It is difficult to determine what kind of unified price after knowing the cost price, so that enterprises can achieve a balance with the provincial health departments and medical institutions and between different types of enterprises.

The development and Reform Commission made a thorough investigation and found that the cost price of several varieties of enterprises is obviously higher.

Those who are close to the NDRC also agree with this view.

"The NDRC's plan has already been put in place, but it can not be implemented and how it should be implemented. The decision is not at this level."

Large pharmaceutical companies join low price battle group

"If the unified pricing is determined to start the pilot project, the next step should be the delivery and production fixed-point."

The unified pricing of essential drugs is coming and going. Some large pharmaceutical companies have already sniffed the opportunity of "designated production" in the future market.

"If the unified pricing is determined to start the pilot project, the next step should be the delivery and production fixed-point."

The above points out that, according to the industry's assumption, the products after unified pricing should no longer carry out price bidding, but ensure the production and supply of products through fixed production and unified distribution.

Some large pharmaceutical companies, who had won the bidding for essential drugs at a low price, began to join the low price winning group, such as North China Pharmaceutical (8.45,0.00,0.00%) group.

Within the pharmaceutical industry association, the Chinese medicine frequently won the bid at a low price, and many of its peers also had some criticism.

When North China Pharmaceutical invested in the establishment of Huaming company, it proposed the development strategy of "3 years without profit".

Recently, in the bidding of basic medicines in Zhejiang Province, the 1 grams of ceftriaxone sodium with a bid of 0.89 yuan won the bid. North China Pharmaceutical even threatened to use 2 billion yuan to win the bid at the lowest price.

The number of companies that join low-cost bidding is increasing.

In 2011, Gansu, Guangxi, Henan, Hubei, Heilongjiang, Sichuan, Shandong, Shaanxi, Zhejiang, Shanghai, Shanghai and Shanghai all winning information in 12 provinces and cities showed that the successful bid for 1g was all known as the large pharmaceutical enterprises in China, including Hua Yao, Shi Yao, Wei Qi Da, Qilu, Luo Xin and the Guilin Dahua in the presence of colon. The lowest price of Guilin Dahua winning bid was 0.847 yuan.

"The bet is that these large varieties of basic drugs may be unified pricing.

If unified pricing is adopted, it is possible to adopt the "three unification" mode -- Unified bidding, unified price and unified distribution.

With fixed production, market share can be quickly occupied. "

The foregoing pointed out that such a large company's huge capital expansion and low price bidding in the whole country are in line with business logic.

Although the profit is thin or even the loss wins the bid, it will still be worthwhile if we can finally occupy the market.