Chinese medicine price cuts during the year "landing"

According to the latest report, the new round of price adjustment for Chinese medicines has been “landed” during the year. The principle of specific adjustments is “there is a rise, fall, fall, and fall”. According to Gan Rongfu, a senior industry researcher of Sinopharm, said: “The exclusive Chinese herbal medicines that are included in the list of basic medicines will also be reduced in price, and the rate will even exceed 10%.” It is worth noting that the price adjustments for traditional Chinese medicine injection may be At the largest, listed companies such as Shanghai Kaibao, Kunming Pharmaceutical, and Zhongheng Group, which rely on traditional Chinese medicine injection products, will usher in the performance test.

The price "has rise, fall, fall and fall"

Since 1997, the National Development and Reform Commission has initiated 31 drug price adjustments. Among them, the latest price cuts for chemicals involved a total of 20 drugs, more than 400 varieties, and more than 700 representative dosage forms. The average price cut was 15%; and the latest price cut for Chinese patent medicine was in 2009, when there were more than 1,000 The overall price of basic drugs is down 12%.

In September 2012, the National Price Bureau began to investigate the costs and profits of some proprietary Chinese medicines. In early November 2012, the National Development and Reform Commission issued the “Notice on Submission of Some Chinese Patented Medicines, Cost, Price, and Other Information” to collect information on the price of proprietary Chinese medicines and made appropriate preparations in advance for the price review of Chinese patent medicines to plan for the latest price adjustments for Chinese medicines. According to a reporter from the price division of the National Development and Reform Commission, the reporter reported that in the latest adjustment of Chinese medicine prices, the National Development and Reform Commission studied a method of adjustment that differs from chemical medicines. Among them, the prices of most Chinese medicines will be adjusted downwards; for some Chinese patent medicines with prices below 5 yuan, and some medicines that cannot guarantee production, prices will remain stable or even increase.

An expert who participated in the price adjustment expert meeting of the Chinese medicine in Beijing last week told reporters that there are three conditions for raising prices: First, they must be priced and included in the 2010 edition of the Pharmacopoeia; secondly, the cost of Chinese herbal medicines accounts for more than 50% of the manufacturing cost. It is wild or perennial. It has not yet achieved large-scale planting and breeding, or is affected by factors such as address and climate, and the price has continued to rise more than 6 times in the past five years. Finally, the price difference between the market price and the maximum retail price limit is not more than 25%.

"The company's traditional Chinese medicine products are exclusive varieties, and may also encounter price cuts. However, by entering the list of basic medicines and we will strengthen the construction of grassroots channels, we will quickly pull sales volume next year to make up for the loss in price." A listed company in Chinese medicine The sales director said.

The high gross profit rate of TCM injections for manufacturers of TCM injections will be the major factor leading to their price cuts. A number of related company's financial reports showed that the gross profit rate of Shanghai Jianbao Tanreqing Injection reached 84.29%; Zhongheng Group's Xueshuantong series gross margin reached 85%. Moreover, in the annual drug sales rankings, there was always no lack of Chinese medicine injection figure. For example, the company's Danhong Injection has achieved annual sales of RMB 5 billion; Zhongheng Group's Xueshuantong ranks the second in sales in 2010, just below Hangzhou Sanofi’s Polyvita.

“Kunming Pharmaceutical's revenue for the production of TCM injections grew by 18% in the first half of the year, while profits increased by 46%.” A relevant person in charge of the China TCM Association told the Shanghai Daily that the profit margin of Chinese medicine injection is too high. , will lead to its price cuts "the most dramatic."

According to industry insiders, traditional Chinese medicine injections are overpriced, which is usually 2-3 times higher than other conventional dosage forms. Sales and other aspects can benefit from this. This is a green light for the promotion and use of traditional Chinese medicine injections. Moreover, because hospitalization can be reimbursed 100%, the hospital uses a large number of Chinese medicine injections for inpatients.

The relevant members of the Chinese Medicinal Pharmaceutical Association told the reporter that in addition to price increase management, the country’s examination and approval of new products for Chinese medicine injections will be tightened. Not only will it be difficult for the new varieties to be approved, but also the reassessment of the safety of old varieties will be carried out.