Research and judgment on the trend of centralized purchase of high-value consumables in 2023
2023-02-07
I. Trend analysis:
Characteristics and highlights are worth studying
In 2021, the centralized purchase of high-value consumables for medical devices in China mainly focused on two areas: cardiovascular and orthopedics consumables, of which the drug balloon for coronary heart disease treatment protocols covered 29 provincial units for a total of 30 centralized purchased, second only to the coverage of the national centralized volume procurement. In 2022, the general direction of the centralized purchase of high-value consumables in China was still focused on the cardiovascular and orthopedic fields, but a closer look reveals that there are still many features and highlights.
i．Focusing on the field of low localization:
Going deep into nerve intervention consumables.
For a long time, neurointerventional consumables have been the “short board” of high value domestic consumables, and the market share of domestic products is very low. However, as domestic enterprises have overcome relevant technical difficulties, domestic products have gradually entered the mainstream market by taking advantage of the trend of centralized purchase. In 2021, two national brands were selected in the centralized purchase of spring coils for neurointerventional consumables carried out in Hebei Province, thus opening the curtain on the collection of neurointerventional consumables and import substitution. In addition, 17 provincial units participated in the centralized procurement of neurosurgical materials, and 1 provincial unit carried out the centralized procurement of dural (spinal) patches.
ii. Spreading to consumer medical care:
Large-scale centralized procurement of oral consumables. In 2022, high-value medical consumables concentrated with centralized volume procurement tried to gnaw off the “hard bone” of oral materials, around the oral implant system, orthodontic bracket two typical premium products to carry out centralized volume procurement from public medical institutions centralized volume procurement, through the quantity-price linked way to achieve price reduction results, and then through timely adjustment of medical service costs, the overall reduction of dental implant costs is a good governance path. After the cost of public hospitals is reduced, it is used as the “benchmark price” to drive the adjustment of the price system in the consumer market outside the public hospital, so as to realize the price adjustment in the two fields of medical treatment and consumption.
iii.The rules tend to be mild:
The price drop is smaller, the pressure of the enterprise is reduced. In 2021 and 2022, the country will carry out collective purchasing of orthopedic consumables for joints, spine, and trauma respectively. The average price drop is between 82% and 84%, which is much more moderate than the 93% price drop of supports. On November 22, 2022, Anhui Provincial Pharmaceutical Price and Centralized Procurement Center released the Document of Centralized Procurement of Coronary artery Drug Coating Balloon in Anhui Province. The maximum effective declared price of this Centralized Procurement was 6301 yuan/root, which was basically the same as the price of the two alliances in 2021, and the product drop is between 70% and 77%.
II. Reshaping the pattern
2023 is the third year for the country to carry out the procurement of high value consumables. The emerging trends are:
i. Research and development is difficult, but sales are no longer difficult.
After the implementation of high-value consumables with volume purchasing, the difficult sales situation is gradually broken. According to the statistics of the collective purchasing announcement of each alliance, in 2022, the drug balloon of Lepu Medicine was selected in all provinces in the country, with an average price of 6,285 yuan. Lepu has become the leader in this field after the collective purchasing.
ii．Domestic substitution is accelerating further.
For example, in 2022, AK Medical, Chunli were among the top artificial joint companies, together with the importers, by virtue of collective purchasing. On September 27, 2022, Tianjin Medical Purchasing Center announced the planned collective purchasing results of the national organization of orthopedic spine consumables, and many domestic brand products ranked the top of the demand, with a lot of harvest; Joint spine drug balloon and other high value consumables with wide coverage and large market space were generally more moderate in price reduction, and the price was almost the same as the original factory price of enterprises. On the one hand, it can seize the market share of import manufacturers through collective purchasing and improve the visibility and influence of enterprises. On the other hand, the cost of selling related products has plummeted, and the profit margin of enterprises has increased, so that they have more ability to support product research and development.
China is encouraging China end uses for more domestic products in latest years. Thus, more and more overseas manufacturers are planning localization in China. BradyKnows localization team has extensive experiences in facility establishment, audit, supplier evaluation, manufacturing, registration, and marketing in China. Pls feel free to let us know any questions on China entry via info@bradyknowsmedical.com
