State collection of spine consumables starts, and the Medical Insurance Bureau has abandoned the principle of "low -priced bidding"

Following the coronary bracket and artificial joints, the state launched the third batch of high -value consumables.

On July 12, the National Organized Medical Consumption Purchasing Platform issued an announcement saying that the volume procurement work in the national orthopedic spine collection was launched. This consumables include 14 products including the fixed fusion system of the cervical spondylus, the fixed system of the cervical rear road nail rod, and the thoracic lumbar spondylon nailing rod fixed fusion system.

The Jianzhi Bureau was informed that the procurement cycle was 3 years, and the actual implementation date of the selection results was calculated.

In February of this year, Chen Jinfu, deputy director of the National Medical Insurance Bureau, proposed at a routine blower at the State Council: The national consumables collection will further extend to the spine consumables, and the orthopedic consumables will basically reach the main coverage. Orthopedic consumables are mainly divided into three types of joints, trauma, and spine. Trauma consumables are mainly purchased by provinces, and joints and spine countries collect. This is long been determined.

The orthopedic consumables, known for its "expensive", have not only made a lot of money on all aspects of the industrial chain, but also made violations of fraudulent cash in Wuhan Tongji Hospital and Zhengzhou Sixth Hospital of Henan.

China's spine consumables have always been led by multinational pharmaceutical companies. The three major foreign capital of Johnson & Johnson, Midunli, and Scenic account for nearly 60 % of the market. In the industry, there are even more "after 2000, many Chinese orthopedics doctors are cultivated from foreign companies". In contrast, domestic Weigao Orthopedic, Dabo Medical, Kellyta, Sanyou Medical, Aikang Medical, Chunli Medical and Minimally Invasive Medicine still takes time to catch up.

But this time the spine collection has given domestic companies a greater opportunity. The rules are clear: companies with national supply capabilities are placed in Group A, and companies in the bidding priority should be higher than that of Group B and group C.

Orthopedics surgery has sinking to the grass -roots market. County hospitals are the main battlefields for companies in the future. Foreign companies are used to competing for the market for large hospitals. The national supply capacity may become a key principle for restricting the development of the foreign company market.

Abandon the "low -priced winning bid"

Emphasizing the "national supply capacity" is related to the rumors of the "after -for -supply of the cardiac stent" circulating before.

The nationwide collection of drugs has successively appeared in the harsh confession of North China Pharmaceuticals. However, because the quality of the medicines is relatively uniform, a substitute can be found immediately after the disconnection. The situation of consumables is very different. Once disconnected, the substitute does not necessarily ensure clinical needs.

Moreover, after the collection, the needs of medical institutions across the country will be concentrated on several brands. Hospital variety switching, subsequent supply guarantee ... everyone's eyes are staring. Scolius consumables are not as simple as coronary brackets. The collection of consumables is set up according to the type of surgery, surgical site, and approach, etc., and 14 product system categories have been formed.

The product system is so detailed, and almost all the spine consumables are included in, and the State Medical Insurance Bureau naturally does not want the situation.

Therefore, compared to the first two rounds of consumables national collection, the spine collection of this round has changed the model of "low -priced bidding", which is divided into three bidding units: A, B, and C. Low to high sorting, determine shortlisted enterprises.

According to the division of the bidding unit: the bidding unit that can be supplied to the whole country and obtained 85%of the purchasing volume of medical institutions can enter the group A bidding unit. Group A is not selected, or it cannot be supplied by products across the country, and enters the bidding unit of Group B. After this setting, as long as the quotation of group A is not higher than that of Group B, Group A can directly obtain the qualifications to be selected.

Analysts pointed out that the important purpose of spine procurement rules is to ensure supply, and through group bidding, large enterprises with enough production capacity to meet most market supply.

On the premise of "guarantee supply", it shows that the medical insurance bureau has given up some of the requirements for price during the design plan, and the final quotation initiative has been handed over to enterprises with stronger distribution strength.

It is foreseeable that the price reduction of spine collection will be relatively rational.

However, the price reduction is always useful. The spine collection has launched the "weight rules". The selected product system allocates the basic quantity according to the ranking gradient. In the remaining amount of the remaining amount, it is tilted with the top companies in the election.

In other words, if some varieties do not meet the requirements of national supply and the price is low enough, they can also gain certain advantages in the distribution of the remaining amount. The core of this rule is to emphasize letting enterprises reduce prices.

Anhui Province had previously carried out two rounds of spine collection, with an average decrease of more than 50%. The industry generally believes that under the unified national organization, the national collection of spine products will decline even greater.

Domestic companies want to turn over

The three national collection of consumables has completely changed the structure of the market.

In 2019, the top five in the overall market of Chinese orthopedic implantation medical devices are: Johnson & Johnson, Midunli, Jiemai, Starker, and Weigo Orthopedics. The top four are multinational pharmaceutical companies with a market share of more than 42%.

The spine products are slightly different from the coronary bracket. The application scenarios are generally optional surgery and have room for preparation in advance. Due to the high risk and high degree of refinement, doctors need to be continuously trained, and they are very familiar with product usage.

Earlier, multinational pharmaceutical companies hoped to take the lead in occupying the market, so Johnson & Johnson and Midunli opened medical innovation centers in Beijing, Shanghai, Chengdu and other places, intended to train doctors to be more familiar with their own products. This also ensures that several major foreign brands can occupy the domestic market.

Earlier media reports have reported that after the artificial joint collection, the price has canceled the doctor's follow -up service because the price is too low. Suppliers or manufacturers no longer provide supporting services, which is a test for clinicians. The industry is worried that many grass -roots doctors and novice doctors cannot continue to learn. However, domestic equipment companies are filling the gap left by foreign capital with flexible and diverse supply capabilities.

With the implementation of the nationwide collection, the spine product market is facing compression, and the performance of enterprises will inevitably be under pressure in the short term. In the 2021 annual report of Weigao Orthopedic, the collection of the second batch of equipment in the country will reduce the product by more than 80%, which may adversely affect the company's future profit. And Aikang Medical believes that the pilot pilots in some provinces and regions seriously affect the Group's sales growth.

On the one hand, it is necessary to rely on collecting collection to maintain and expand sales channels; on the other hand, in the long run, with new products with higher value -added with R & D and innovation capabilities, this is the best for domestic enterprises to improve themselves and obtain long -term growth Way.

From extensive to fine, from open to minimally invasive, China's spine products have undergone tremendous changes in the past two decades. After the collection, whether it is an enterprise or a doctor, it will enter the next stage of development. Stepping on your own, you must face the elimination of the market.

#National Collection ## National Medical Insurance Bureau ## Spinal Market#

- END -