The Paper's reporter Li Xiaoxiao
Another alliance of drugs was finalized, including "high gross margin" growth hormone and blood products.
On January 19, the Guangdong Provincial Drug Trading Center issued the notice of "Guangdong Alliance Diclofenac and Other Drugs Centralized Procurement Documents", carrying out the centralized procurement of 276 drug alliance areas such as diclofenac, and participating in the alliance involving 11 provinces and regions, including Guangdong, Shanxi, Jiangxi, Henan, Guangxi, Hainan, Guizhou, Qinghai, Ningxia, Xinjiang and Xinjiang Production and Construction Corps.
As early as September and October 2021, the Guangdong Provincial Drug Trading Center issued the notice of "Guangdong Alliance Diclofenac and Other 153 Drug Groups with Quantity Procurement Documents (Draft for Comment)", and the latest document released this time means that the scope and rules of the Guangdong 11 Provinces Alliance are officially finalized.
The most direct difference between the two editions of the document is that the number of varieties collected by the Alliance has increased from 153 to 276, including high-margin growth hormone and blood products. Judging from public information, this is also the first time that the above two varieties have entered the collection.
Or affected by the above news, on January 19, the stock prices of growth hormone and blood products related companies fell sharply. Changchun High-tech (000661) responded on the interactive platform that the company is currently actively studying policy provisions and will formulate a reasonable plan, and there is no expectation of specific impact.
The Guangdong 11 Provincial and Regional Alliance adopts the online quotation method
Drug collection in the form of alliances is becoming the norm.
Since the "4 + 7" pilot city drug centralized procurement in 2018, the state has organized drug collection and collection has completed 6 batches, with an average reduction of about 50%, which greatly reduces the burden of medication on patients, from the past several rounds of national organization drug collection, the rhythm is basically twice a year, and the scope of coverage of drugs is limited. In the atmosphere of "everything can be collected", in addition to the state organization, the provinces and regions have also begun to establish alliances to initiate different ranges of collection.
For example, in 2021, there will be two major provincial and regional alliances in the field of proprietary Chinese medicine, including the Hubei 19 Provincial and Regional Alliance and the Guangdong 6 Provincial and Regional Alliance, of which the former has opened bids at the end of 2021. Judging from the list of candidates to be selected, a total of 111 proprietary Chinese medicine products were selected this time, with a selection rate of 62%, an average decrease of 42.27%, and a maximum reduction of 82.63%.
On January 10, the executive meeting of the State Council also specifically mentioned the "inter-provincial alliance collection" when expanding the scope of collection, saying that with the focus on chronic diseases and common diseases, it will continue to promote the collection of drugs at the national level, and all localities will carry out provincial or inter-provincial alliance procurement of drugs collected by the state. By the end of this year, the total number of national and provincial collection drugs in each province has reached more than 350.
It is foreseeable that in 2022, the collection of national and provincial drugs will be more normalized. Although the provincial union is not nationwide, its influence should not be underestimated.
Judging from the collection documents of the Guangdong 11 Provinces and Regions Alliance, the procurement cycle of this collection and procurement is not more than two years in principle, and after the expiration of the first year of procurement, it can be renewed for one year. Purchase agreements are signed annually during the procurement cycle and re-reported when the purchase agreement is renewed the following year.
The alliance regions participating in the collection and reporting of this drug include 11 provinces and regions such as Guangdong, Shanxi, Jiangxi, Henan, Guangxi, Hainan, Guizhou, Qinghai, Ningxia, Xinjiang, and Xinjiang Production and Construction Corps, and the reported volume includes not only public medical institutions, but also medical insurance designated social medical institutions and designated pharmacies. The above 11 provinces have a population of more than 400 million people, accounting for about 30% of the country's total population.
The Guangdong 11 provincial and regional alliance collects some products from 276 drugs
The 276 drugs selected into the Guangdong 11 provinces and regions alliance were divided into four categories: blood products, basic infusions, exclusive drugs and non-exclusive drugs for corresponding quotations, and each drug in the document set the highest effective declaration price / the highest daily average cost. The specific rules for quoting, winning and selecting are complex and vary according to the category.
It is worth mentioning that unlike the on-site quotation bidding in the past, the quotation of this collection and procurement adopts the online quotation method, and the reporting enterprise logs on to the provincial platform drug trading system within the specified time to make a quotation according to the requirements of the quotation notice (separately released). When decrypting quotation information, notary institutions and relevant departments are invited to participate in the whole process of decryption of quotation information.
Provincial alliance collection is often regarded as an attempt before the national organization of the collection, and the changes in the above rules and participation methods may be reflected in the subsequent national collection and collection.
Growth hormone is the first to collect, and the company has a high gross profit or decline
In fact, the draft for comments issued by Guangdong Province last year has listed growth hormone in the scope of collection, but after the official collection document was released, the relevant enterprises in the secondary market are still facing a sharp decline.
Judging from the published list, the collection involved 20 drug names, including Novo Nordisk, South Korea's LG Life Sciences, Kinsey Pharmaceutical, Anke Bio, Shanghai United SaiEr Bio, Zhongshan Weiming Haiji Bio and other 6 companies.
Guangdong's 11 provinces and regions collect some products of growth hormone, involving enterprises and reporting information
According to IQVIA and Guoyuan Securities data, in 2020, Changchun High-tech Subsidiary Kinsey Pharmaceutical will occupy 78.39% of the market share in the domestic growth hormone drug field, and the market share of Anke Bio is 13.95%.
At about 11:00 a.m. on January 19, after the news of growth hormone entering the collection, The parent company of Kinsey Pharmaceutical, Changchun High-tech (000661), plunged to a halt, closing at 227.6 yuan, a new low in 22 months, and the market value also fell below 100 billion. Another domestic growth hormone head company, Anke Bio (300009), also plunged more than 7%.
Growth hormone itself is a protein synthesized and secreted by the front lobe cells of the pituitary gland, which is a kind of peptide hormone, and its main physiological role is to promote the body's anabolic metabolism and protein synthesis, and stimulate bone growth. When there is a lack of growth hormone due to certain diseases, it will affect a person's height, and it is necessary to treat it with growth hormone drugs, so many people call growth hormone "elevation injection".
All along, HGH has faced questions about its high price and misuse.
The main point of contention for high prices is the high gross profit of related enterprises. Judging from the 2020 financial report data, the gross profit margin of Changchun High-tech and Anke Bio-growth Hormone in the product category exceeded 90% and 85% respectively. Abuse mainly refers to the intervention of some medical representatives of enterprises in clinical diagnosis and treatment through certain means and the prescription of growth hormone.
Companies deny abuse. In August 2021, a Xinhua News Agency report on growth hormone attracted public attention. At that time, Changchun High-tech responded that the relevant products were sold to medical institutions that met the requirements of laws and regulations, and for the use of growth hormone products, doctors needed to carry out a series of rigorous testing items, including growth hormone provocation tests, before they could prescribe according to the specific situation and clinical requirements of the disease.
It is worth mentioning that in addition to Kinsey Pharmaceutical and Anke Bio, there are also a number of domestic companies in the layout of growth hormone, such as Tebao Bio's Y-type polyethylene glycol recombinant human growth hormone (YPEG-GH), Tianjing Bio's long-acting recombinant human growth hormone, and Yifan Pharmaceutical's recombinant human growth hormone-Fc fusion protein for injection.
A pharmaceutical investor told the surging news reporter that through the collection, the price of growth hormone is expected to decline, squeezing out part of the company's gross profit. Since many companies that have developed growth hormone are in the research stage, there may be a few years to go before the real listing, and the impact on the decision-making and market pattern of existing companies may not be great.
The surging news noted that Changchun Gaoxin mentioned in an investor survey minutes that at present, less than 30% of Kinsey Pharmaceutical's growth hormone is sold in public hospitals, and more than 70% is sold in other cooperative medical institutions.
The main body of procurement of this alliance is all public medical institutions (including military medical institutions) in the alliance area, and medical insurance designated social medical institutions and designated pharmacies are voluntarily participating. This means that if social medical institutions do not participate in this procurement, the final result will mainly affect the public hospital market such as growth hormone, and the impact will be limited for enterprises such as Changchun High-tech.
In other words, if it is affected by collective procurement, social medical institutions may become the focus of relevant enterprises.
Blood products are the first to be collected, and the four giants are on the list
The collection scope covers blood products, including intravenous injection of human immunoglobulin (pH4), human immunoglobulin, human coagulation factor VIII., human fibrinogen, human blood albumin five varieties, involving Harbin Pasifico Biopharmaceuticals, Green Cross (China) Biological Products, Shandong Taibang Biological, Nanyue Biological, Shanxi Kangbao Biological, Shenzhen Weiguang Biological, Sichuan Yuanda Shuyang Pharmaceutical, Tonglu Biological, Xi'an Huitian Blood Products, Zhejiang Haikang Biological and more than ten enterprises.
It is worth noting that among the "four major blood product giants", Boya Bio (300294), Hualan Bio (002007), Shanghai Laishi (002252), Tiantan Bio (600161) are among them, and Tiantan Bio has entered the list in the name of local subsidiaries such as Sinopharm Group Guizhou Blood Products Co., Ltd.
Guangdong 11 provinces and regions alliance collects some blood product products, involving enterprises, and reported volume information
The main raw material required for the production of blood products is raw plasma, which is collected by the single plasma collection station affiliated to the enterprise. According to the Regulations on the Administration of Blood Products, single plasma collection stations need to obtain the "Single Plasma Collection Permit" issued by the provincial health department to collect pulp in the designated plasma collection area.
Combing through the 2020 annual reports of the four major blood product giants, the surging news reporter noted that the gross profit margin of blood products is between 50% and 65%. Blood products are special drugs, in the past in the discussion of collection, the industry generally believes that its raw materials are not easy to obtain, and the production method also has a huge impact on quality, and it is unlikely to be included in the collection. Today, a paper document has broken the previous analysis, and the collection of blood products has become a foregone conclusion.
The secondary market has been slower than growth hormone to enter the collection of blood products, but it still cannot escape the decline.
After the opening of the market on the afternoon of January 19, Hualan Bio and Shanghai Laoshi dived down. As of the close, Hualan Bio fell 5.63% to 28.15 yuan, with a market value of 51.36 billion yuan. Shanghai Laixi reported 7.22 yuan, down 2.7%, with a market value of 48.67 billion yuan. Tiantan Biology and Boya Biology also fell sharply after the opening of the afternoon, but then rebounded, as of the close, Tiantan Biology reported 30.71 yuan, down 0.94%, with a market value of 41.27 billion yuan. Boya Bio reported 39.64 yuan, down 0.65%, with a market value of 20.28 billion yuan.
The above-mentioned pharmaceutical investors believe that the blood products industry barriers are high, the concentration is also high, it has resource attributes, and it depends on the single plasma collection station of the enterprise, so it also depends on the background of the enterprise. However, the collection has always been "barefoot is not afraid to wear shoes" of the existence of enterprises, in the end who can win the bid, the market pattern will change because of the collection, but also need to be further observed.
Responsible Editor: Yes Winter Photo Editor: Le Yu Feng
Proofreader: Luan Meng