Core Viewpoint - The article discusses the results of the 11th round of national drug centralized procurement in China, highlighting the competitive nature of the bidding process and the implications for pharmaceutical companies involved in the bidding [3][4]. Group 1: Procurement Results - The 11th round of centralized procurement included 55 types of drugs, with 445 companies participating and 453 products winning the proposed selection, resulting in a selection rate of nearly 60% [3][4]. - The average price difference for selected products has significantly narrowed compared to previous rounds, indicating a more competitive bidding environment [4][13]. Group 2: Competitive Dynamics - Companies generally adopted conservative pricing strategies, aiming for survival and market share rather than aggressive pricing, with only a few willing to bid higher [4][5]. - The most competitive products saw a high number of bidders, such as theophylline injection with 48 bidders, while some products experienced significant differentiation in bidding strategies [6][7]. Group 3: Case Studies - Yichang HEC Changjiang Pharmaceutical, known for its oseltamivir granules, unexpectedly lost its bid, which could lead to a loss of market share to the winning companies [7][8]. - Jiu Dian Pharmaceutical, previously the sole supplier of a pain relief product, won bids for multiple products at significantly lower prices than previous rounds, indicating a shift in market dynamics [10][11]. Group 4: Future Implications - The article suggests that the current procurement pricing mechanism may lead to short-term adjustments in revenue and profit margins for companies, emphasizing the need for strategic adaptations [12][13]. - The National Healthcare Security Administration aims to stabilize clinical supply and quality while preventing extreme price competition, indicating ongoing adjustments to procurement rules [13].

Core Insights - The intensity of competition in the latest round of centralized drug procurement is significantly higher than in previous rounds, with a total of 55 drugs and 445 companies participating, resulting in a selection rate of nearly 60% [1][2][11] Group 1: Competitive Landscape - The latest procurement round saw 794 products from 445 companies, with 272 companies winning bids [1][2] - The most competitive products included theophylline injection with 48 bidders, and cefazolin and famotidine injections with 41 and 38 bidders respectively [3] - Some companies adopted a strategy of bidding low to secure more market share, reflecting a cautious mindset among bidders [2][3] Group 2: Market Impact - The market leader in influenza medication, Yichang Dongyangguang, unexpectedly lost its bid for oseltamivir granules, which accounted for approximately 67% of its revenue [4][5] - The winning bids for oseltamivir were significantly lower than Yichang Dongyangguang's bid, indicating a shift in market dynamics [5] - Nine Dian Pharmaceutical, previously the sole supplier of a pain relief product, won bids for multiple products at prices much lower than previous procurement rounds, indicating a potential impact on its revenue and profit margins [7][9][10] Group 3: Regulatory Environment - The National Healthcare Security Administration has implemented measures to maintain high selection rates while preventing extreme low pricing, including setting anchor prices and not including products with a scale below 100 million [2][11] - The procurement process emphasizes comprehensive evaluation beyond price, including brand, quality, and supply chain factors, although price competition remains fierce [10][11]

Core Viewpoint - The eleventh batch of national procurement results indicates that four companies are competing for the qualification to supply the transdermal patch/ointment of Loxoprofen, with three companies, including Jiutian Pharmaceutical, Lijiang Pharmaceutical, and Beijing Tide Pharmaceutical, winning the bid, while the original manufacturer, LEAD CHEMICAL CO., LTD., lost the bid [1] Group 1: Companies Involved - Jiutian Pharmaceutical, through its subsidiary Hunan Puda Medical Technology Co., Ltd., is one of the winning bidders for the Loxoprofen transdermal patch/ointment [1] - Harbin Lijiang Pharmaceutical Co., Ltd. is also among the companies that secured the bid for the Loxoprofen product [1] - Beijing Tide Pharmaceutical Co., Ltd. is the third company that has been awarded the qualification to supply the Loxoprofen transdermal patch/ointment [1] Group 2: Market Insights - The sales revenue of Loxoprofen transdermal patch/ointment in domestic public hospitals is expected to exceed 1 billion in 2024 [1] - Jiutian Pharmaceutical holds a significant market share in the domestic market for Loxoprofen products [1]

Core Viewpoint - The article discusses the ongoing optimization of China's drug procurement policy, emphasizing the principles of "stabilizing clinical use, ensuring quality, preventing collusion, and avoiding internal competition" as the country moves into its eleventh round of drug procurement, which includes 55 drugs [1][6][10]. Group 1: Drug Procurement Overview - Since 2018, China has conducted ten rounds of drug procurement, covering 435 drugs, with the eleventh round now initiated [1][6]. - The National Medical Insurance Administration (NMI) has stated that 480 companies submitted information for the procurement process, with an average of 15 companies per drug, and some drugs having over 40 companies participating [1][6]. Group 2: Optimization Measures - The NMI has optimized procurement rules, including allowing medical institutions to specify brands in their volume reporting and changing the price difference calculation method to not solely rely on the lowest bid [6][10]. - Quality assurance measures have been heightened, requiring that bidding companies have no violations of Good Manufacturing Practices (GMP) in the past two years [6][10]. Group 3: Market Impact - The eleventh batch includes a variety of drug forms, with oral sustained-release and injection drugs making up significant portions of the list [6][7]. - Notable drugs include cefazolin and famotidine, with over 30 companies eligible for bidding, indicating high competition [7]. Group 4: Financial Implications - The procurement process has saved approximately 440 billion yuan in medical insurance funds since 2018, with over 360 billion yuan saved from negotiations on older drugs, which has been redirected to innovative drugs [10]. - The shift in procurement policy is moving from a focus on low prices to a model that emphasizes quality, cost control, and reasonable profits [10][11]. Group 5: Regulatory Developments - The NMI is committed to maintaining a transparent and fair procurement process, with ongoing efforts to address issues of price fairness and quality assurance in the pharmaceutical industry [12].

Core Viewpoint - The National Medical Insurance Administration (NMIA) is advancing the 11th batch of drug procurement, focusing on maintaining clinical stability, ensuring quality, preventing collusion, and avoiding excessive competition in the pharmaceutical industry [1][2][6]. Group 1: Drug Procurement Process - Since 2018, the NMIA has successfully conducted ten batches of drug procurement, covering 435 types of drugs, with the 11th batch now underway [1][2]. - The 11th batch includes 55 drugs, with an average of 15 companies per drug, and some drugs having over 40 companies participating [1][3]. - The procurement process aims to optimize price calculations and ensure that the lowest bid is justified and does not fall below production costs [3][6]. Group 2: Market Impact and Drug Types - The 11th batch primarily includes oral sustained-release and injection forms, with 41.8% being oral forms and 40% being injections [3]. - Notable drugs in this batch include cefazolin, famotidine, and various oral sustained-release formulations, with some expected to exceed sales of 1 billion yuan [4][5]. - The NMIA has reported that the cumulative savings from drug procurement since 2018 amount to approximately 440 billion yuan, with over 360 billion yuan allocated for negotiated drug use [5][6]. Group 3: Regulatory and Quality Assurance - The NMIA emphasizes the importance of quality assurance, requiring that selected drugs have not violated production quality standards in the past two years [3][6]. - The regulatory framework has shifted from merely controlling costs to fostering a healthy industry ecosystem that prioritizes quality and reasonable profits [6][8]. - The NMIA is implementing stricter monitoring and evaluation measures for companies involved in drug procurement to ensure compliance and quality [6][7]. Group 4: Future Directions - The NMIA plans to continue normalizing and institutionalizing drug procurement, aiming to include all clinically necessary and reliable drugs in the procurement scope [8][9]. - Future reforms will focus on enhancing quality supervision throughout the drug lifecycle and improving communication among hospitals, insurance, and regulatory bodies [8][9].