Recently, Buchang Pharmaceutical announced that according to the spirit of the relevant documents of the National Health Insurance Bureau, its wholly-owned subsidiary, Shaanxi Buchang Pharmaceutical Co., Ltd., has adjusted the price of its product Naoxintong Capsule. The price reduction involves the three specifications of Naoxintong capsules, among them, 36 capsules/box from 21.89 yuan to 23.69 yuan to 19.9 yuan, 48 capsules/box from 28.95 yuan to 31.59 yuan to 26.26 yuan, 72 capsules/box from 48.31 yuan to 38.81 yuan. Based on this calculation, 36 capsules/box decreased by about 9% to 15%, 48 capsules/box decreased by about 9% to 16%, and 72 capsules/box decreased by about 19.7%.
Naoxintong Capsule is a cardiovascular and cerebrovascular treatment drug, which has been approved for marketing as early as 1993, and is one of the three exclusive Chinese medicine varieties of Buchang Pharmaceutical, according to the data of Minenet, Naoxintong will rank fourth in the market share of cardiovascular and cerebrovascular Chinese patent medicines in 2022, with a market share of 3.13%. At the same time, Buchang Pharmaceutical said in the announcement that the total sales of Naoxintong Capsule in 2023 will be 2.937 billion yuan, accounting for 22.20% of the company's main revenue in the current year, and the sales revenue in the first quarter of this year will be 577 million yuan, accounting for 21.87% of the revenue in the current quarter.
As early as April 19, the Shanxi Provincial Pharmaceutical and Medical Equipment Centralized Procurement Center disclosed through the official website that according to the National Health Insurance Bureau's "Letter on Reporting the Results of Interviews with Some Inflated Drugs and Implementing the Letter", the prices of some enterprises' products were adjusted, and the price adjustment varieties included 48 and 72 Naoxintong capsules of Buchang Pharmaceutical, and the price adjustment information announced at that time was consistent with the adjusted price announced by Buchang Pharmaceutical.
The company will continue to strengthen the research and development of new drugs, increase the promotion of reserve products, implement the secondary development of existing products, strengthen professional academic promotion, marketing network construction and international market development and other ways to improve the company's overall performance. In Buchang Pharmaceutical's 2023 annual report, Buchang Pharmaceutical mentioned that the company intends to carry out process transformation of products including Naoxintong capsules, and apply new technologies and equipment such as traditional Chinese medicine extraction, separation, concentration and drying, as well as online monitoring and automatic control technology to the production process of traditional Chinese medicine, optimize the production process, reduce production costs, and improve product quality.
In fact, before the price adjustment, the market performance of Naoxintong capsules began to be weak. Buchang Pharmaceutical's 2023 performance report shows that the sales volume of Naoxintong capsules (36 capsules/box) is 37.4347 million boxes, and the sales volume of Naoxintong capsules (48 capsules/box) are 66.0723 million boxes, a year-on-year decrease of 24.98% and 5.16%, respectively, while in 2022, Naoxintong capsules (36 capsules/box) and Naoxintong capsules (48 capsules/ boxes) corresponding to 49,899,100 boxes and 69,665,300 boxes respectively, and the decline in sales volume also brought about an increase in inventory, and the inventory of Naoxintong will rise by 113.6% in 2023, Buchang Pharmaceutical said, mainly due to the decline in sales.