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Sandoz was exposed to the interruption of supply and collection, and was identified as "serious" untrustworthiness due to the interruption of supply

author:Lucky God Medicine Armory

Sandoz was exposed to product outages. After the expiration of the expansion of the drug collection pilot organized by the state (Hubei), the losartan potassium tablets of Sandoz (China) became the winning enterprise in the province's bidding for renewal, and because the enterprise could not be supplied normally, Zhejiang Huahai Pharmaceutical was used as a substitute enterprise to supply the province.

In addition, the Hubei Provincial Medical Security Bureau recently announced the "Notice of the Office of the Joint Conference of the Centralized Procurement Department of Pharmaceutical Devices in Hubei Province on Replacing the Packaging of Ciprofloxacin Lactate Sodium Chloride Injection and Determining the Replacement Supply Enterprise of Losartan Potassium Tablets".

Sandoz was exposed to the interruption of supply and collection, and was identified as "serious" untrustworthiness due to the interruption of supply

The notice pointed out that the glass bottle ciprofloxacin sodium chloride injection produced by Kelun Pharmaceutical is the first batch of selected products in the province's centralized procurement, and due to the supply of packaging raw materials, the enterprise cannot supply glass bottles. Upon the application of Kelun Pharmaceutical, it was agreed to supply ciprofloxacin lactate in a polypropylene infusion bottle of polypropylene infusion with the same generic name and specifications produced by the enterprise to the medical institutions in the province.

In other words, the supply cut-off problem involved in Coron Pharmaceuticals is due to packaging replacement.

In the future, will pharmaceutical companies still have supply cuts?

With the development of collection and procurement round by round, more and more enterprises have participated in the ranks of collection and procurement, but some pharmaceutical companies have fallen into "predicament".

By selecting the best of the best, pharmaceutical companies can obtain stable sales channels and revenue sources, and quickly occupy the mainstream public hospital market. But at the same time, it is under pressure to drastically cut product profits.

Judging from the results of centralized procurement, the winning price of most domestic generic drugs has dropped by more than 90%. According to industry analysis, 60%-80% of the price of the terminal can be digested, but if products such as hepatitis B drugs entecavir and coronary stents drop by more than 90%, it will cause a huge blow to the factory.

Because the supply of centralized procurement puts forward higher requirements for the production scale and expansion capacity of the winning enterprises. Therefore, if the price of drugs drops by 60%-80%, pharmaceutical companies can maintain profits by reducing the cost of intermediate links, but the decline reaches more than 90%, close to the ex-factory price of drugs, which may touch upstream links such as raw materials. At this time, if the pharmaceutical company chooses to "punch the swollen face and fill in the fat", it is likely that there will be a problem of supply interruption, and eventually be included in the dishonest list, Lianhua Procurement said that it will strengthen the monitoring and early warning of the procurement of the winning products, and seriously deal with the problems such as the failure of the enterprise to perform the supply agreement found in the procurement. Provinces will also compress the performance responsibilities of selected enterprises through credit assessment, give credit ratings to enterprises that cannot be performed after selection, and make corresponding disposals under the new procurement model

Sandoz was exposed to the interruption of supply and collection, and was identified as "serious" untrustworthiness due to the interruption of supply

to gain a competitive advantage, through the appropriate strategic layout and organizational management system, to obtain market-recognized profits. According to the current trend of centralized procurement, participants in centralized procurement have begun to become calm in policy adjustments

Since the centralized procurement of the fourth batch of drugs, the number of enterprises with selectable varieties has increased from 8 to 10 to ensure the supply capacity of the selected drugs. In 2021, the Medicare Board further eased its policies. From the perspective of the centralized procurement policy of insulin and artificial joints, the final phase-out system of insulin is no longer mandatory, and the centralized procurement of joints has also weakened the low-price winning bids, establishing group bidding and retaining a large proportion of winning bids

Increasing the number of successful candidates means that individual companies gain less market share. In order to ensure profits, it is necessary to make reasonable quotations to reduce the impact of centralized mining on the ecology of the industry to a certain extent

Many pharmaceutical companies have been identified as "serious" dishonesty due to supply disruptions

Many pharmaceutical companies are severely punished for supply issues after successfully choosing in bulk procurement. Among them, the most famous is that North China Pharmaceutical cut off the supply of ibuprofen extended-release capsules

North China Pharmaceutical was unable to supply the agreed purchase volume in Shandong Province. After many interviews and consultations with the relevant departments, the supply situation has not improved

In this regard, the Centralized Drug Procurement Agency of Shandong Province, in accordance with the provisions of the price bidding and procurement credit assessment system, assessed the enterprise as "serious" dishonesty, suspended the qualification of ibuprofen sustained release capsules of North China Pharmaceutical Co., Ltd. for three years, and cancelled the application qualifications of the enterprise to participate in the centralized drug procurement activities organized by Shandong Province from August 11, 2021 to May 10, 2022. The Joint Procurement Office of Drugs, a state organization, also issued an announcement to put the company on the "list of violations" and cancel the participation of the enterprise from August 11, 2021 to 2022

On September 10, the state organized centralized drug procurement activities to apply for eligibility, Henan Provincial Public Resources Trading Center reported that the state organized a centralized drug procurement pilot to expand the selected varieties of entecavir tablets selected enterprises. Beijing BIO Pharmaceutical has repeatedly had supply problems in Henan Province. The reason for this notification is that in the process of centralized procurement and expansion, BIOM Pharmaceutical has the problem of low distribution rate of selected products. Even between May and June this year, the suspension of production and supply did not notify the relevant centralized procurement agencies and units in advance, which seriously affected the order of clinical treatment. Centralized drug procurement agencies in Henan Province in accordance with the "Price Bidding Procurement Credit Evaluation System"

Sandoz was exposed to the interruption of supply and collection, and was identified as "serious" untrustworthiness due to the interruption of supply

Reviewing the provisions, the enterprise was rated as "serious" untrustworthiness, and the Zhejiang Pharmaceutical Machinery Procurement Center announced that the normal supply of drugs could not be guaranteed due to the inability to procure the raw materials for cefmetazole sodium for injection. As a successful enterprise in the first batch of centralized procurement of drugs in Zhejiang Province, cefmetazole sodium for injection produced by Suzhou Dongrui Pharmaceutical Co., Ltd. cannot fulfill the obligation to win the bid, therefore, the online trading of cefmetazole sodium for injection began (specification: 0.5g1.0g) And the Zhejiang pharmaceutical machinery procurement platform produced by Suzhou Dongrui Pharmaceutical Co., Ltd. will be suspended

Yunnan Provincial Medical Insurance Bureau announced the "Yunnan Province National Centralized Drug Procurement Enterprise Abnormal Supply Varieties Selection Table" Entecavir, atorvastatin calcium and clodipine will be suspended, involving Suzhou Dongrui, Xing'an Pharmaceutical, Changzhou Fourth Pharmaceutical, Yangtze River Pharmaceutical Group Jiangsu Pharmaceutical, Sinopharm Group Rongsheng Pharmaceutical and other supply enterprises

As can be seen from these supply disruptions, the number of local health care bureaus and tendering procurement agencies for such incidents is decreasing. Before the supply disruption incidents of North China Pharmaceutical and BIAO Pharmaceutical, the procurement department was very determined. Getting pharmaceutical companies to understand the consequences of supply disruptions is serious, and they need to be careful when entering the bureau