On April 23, 2024, the national insulin special centralized procurement and continuous procurement bid was opened in Shanghai, and 49 products were qualified for selection, with a winning rate of 92%. Among them, a number of listed companies have products selected for this continuous procurement.
Source: Photo.com
The results of the proposed selection of insulin continuous procurement were announced, and 49 products were selected
The two-year agreement period for centralized insulin procurement will expire in May 2024, and the National Organization Drug Joint Procurement Office has issued a national bid for the unified procurement of insulin. On April 23, 2024, the bid for the national insulin special centralized procurement and continuous procurement was opened in Shanghai. More than 35,000 medical institutions across the country participated in this continuous procurement, reporting the demand for more than 240 million insulins, covering the second and third generation insulins commonly used in clinical practice. Insulin manufacturers are actively involved.
According to the National Healthcare Security Administration, in November 2021, the state organized centralized procurement of insulin to include biological drugs in the scope of centralized procurement for the first time, and the average price of selected products was reduced by 48%, and the price of insulin in mainland China dropped from the high price of the world to the low level of the world.
According to the data, the annual consumption of insulin in public medical institutions across the country was about 250 million before centralized procurement, and after centralized procurement, the 22-month insulin dosage of selected insulin reached 650 million, with an average annual dosage of about 350 million. At the same time, because the third-generation insulin has certain advantages in terms of drug frequency, compliance, safety, and blood glucose control compared with the first-generation and second-generation insulin, and has higher clinical recognition, the price difference with the second-generation insulin has been narrowed after the centralized procurement price reduction, which has further improved the accessibility and indirectly promoted the upgrading of the drug structure. Before centralized procurement, the proportion of third-generation insulin was 58%, and after centralized procurement, it increased to 70%, which is close to the drug structure of European countries.
In this continuous procurement, a total of 53 products from 13 companies participated, and 49 products were qualified, with a winning rate of 92%, and the winning price was stable and decreased, which was reduced by 3.8 percentage points on the basis of the first round of centralized procurement price reduction. In the first round of centralized procurement, the price difference of the third-generation premixed group, which had the largest price difference, narrowed from 2.3 times to 1.6 times, making the market competition fairer and the supply of enterprises more secure. At the same time, the proportion of selected products in category A with lower quotations increased from 40% in the previous round to 71%. Among the selected products in category A with lower quotations, there are not only products of internationally renowned enterprises and domestic brands, but also products of newly listed enterprises, which are conducive to better meeting the needs of the masses.
A number of listed companies plan to win the bid for insulin continuous procurement
According to the "Announcement of the Proposed Selection Results of the National Drug Centralized Procurement (Special Continuation of Insulin)" issued by the National Drug Joint Procurement Office, a number of listed companies have products selected.
In terms of A-shares, Tonghua Dongbao (600867.SH), Gan & Lee Pharmaceutical (603087. SH) both listed companies have 6 products to win the bid, the largest number.
Among them, Tonghua Dongbao announced on April 23 that all the company's insulin products are participating in the declaration of insulin centralized procurement, and human insulin injection, probin human insulin injection, proton human insulin mixed injection (30R), insulin aspart injection, insulin glargine injection, and insulin aspart 30 injection are 25.93 yuan/piece, 25.93 yuan/piece, 25.93 yuan/piece, 23.98 yuan/piece, 63.33 yuan/piece, and 23.98 yuan/piece, respectively. The price of the branch is to be selected.
Tonghua Dongbao's 2023 annual report shows that in 2023, the sales volume of the company's various insulin series products will achieve different growth rates, among which, the sales volume of human insulin will maintain stable growth, and the sales volume of insulin analogues will continue to grow rapidly. According to the sales data of pharmaceutical Rubik's Cube insulin, in 2023, the company's human insulin market share will exceed 40%, ranking first in the industry. The sales volume of the company's full range of insulin products in 2023 will be 83.2212 million, a year-on-year increase of 12.84%, of which the sales volume of insulin analogues will increase by more than 60% year-on-year.
Tonghua Dongbao said that in order to actively respond to the national policy, reduce the cost of medical insurance, and reduce the burden of drug use on patients, the price of the company's proposed selected products has decreased to a certain extent compared with the original price, but according to the rules for the renewal of centralized procurement and the results of the selection, the company will obtain 90% or 100% of the company's product procurement demand in the first year, and part of the remaining amount to be allocated in the first year of procurement demand for other companies' products, as the agreed purchase volume, which will be conducive to the further improvement of the market share of the company's products.
On the same day, Gan & Lee Pharmaceutical also announced that the company's proton human insulin mixed injection (30R), insulin lispro injection, insulin aspart injection, insulin glargine injection, recombinant insulin listo listo mixed injection (25R) and insulin aspart 30 injection and other varieties participated in the declaration of insulin succession procurement have been qualified to be selected, and all participating groups have been selected as Class A varieties.
It is reported that the total sales of the six products and related specifications that Gan & Lee Pharmaceutical intends to win the bid for in 2022 will be 1.369 billion yuan, accounting for 79.96% of the company's operating income in 2022, and the total sales in the first three quarters of 2023 will be 1.582 billion yuan, accounting for 82.99% of the company's operating income in the first three quarters of 2023.
In addition, Lepu Medical (300003. SZ) holding subsidiary Liaoning Boao Biopharmaceutical Co., Ltd.'s insulin glargine injection at a price of 63.88 yuan per branch to win the bid.
Lepu Medical said that the insulin glargine injection product is a new drug approved for marketing by the company in 2024, and the successful winning of the bid for national volume procurement will help the commercial sales of the company's products, promote the revenue growth of the drug, and have a positive impact on the company's long-term development.
In terms of performance, in 2023, the company will achieve an operating income of 7.980 billion yuan and a net profit attributable to shareholders of listed companies of 1.258 billion yuan. In addition, Lepu Medical's 2023 profit distribution plan shows that the company intends to distribute a cash dividend of 3.3141 yuan (tax included) for every 10 shares.
Fosun Pharma (600196. SH) holding subsidiary Jiangsu Wanbang Biochemical Pharmaceutical Group Co., Ltd. plans to win the bid for human insulin injection at a price of 25.93 yuan per piece.
According to Fosun Pharma's 2023 annual report, in 2023, the company achieved an operating income of 41.340 billion yuan and a net profit attributable to shareholders of listed companies of 2.386 billion yuan.
In terms of R&D and innovation, in 2023, the company has approved the marketing of 8 indications and 29 generic drug varieties of 6 innovative drugs, 7 indications and 64 generic drug varieties of 5 innovative drugs/biosimilars, and 20 innovative drug/biosimilar projects approved for clinical trials (calculated by indication) during the reporting period.
In terms of Hong Kong stocks, East Sunshine Changjiang Pharmaceutical (01558. HK) human insulin injection, protrein human insulin mixed injection (30R), insulin aspart injection, insulin glargine injection and insulin aspart 30 injection at the prices of 25.87 yuan/piece, 25.87 yuan/piece, 18.87 yuan/piece, 63.37 yuan/piece, and 25.87 yuan/piece, respectively; HK) holding subsidiary Huisheng Biopharmaceutical Co., Ltd.'s two products, insulin aspart injection and insulin aspart 30 injection, are both proposed to win the bid at a price of 25.92 yuan per piece.