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What is the implication of the falling price of the drug?
 
Author:中國銘鉉 企劃部  Release Time:2017-8-23 11:36:21  Number Browse:779
 

Medical network - August 23rd August 18, medicines and medical institutions in liaoning province medical consumables centralized purchasing work leading group office issued a called "about agree with bayer healthcare notice three drug prices, bayer pharmaceutical production of three kinds of different specifications of the cutting class cut piece in liaoning province, the highest reduction of 65.9%.


If the time back to the pointer to five or six years ago, multinational pharmaceutical companies in China products price "active" does seem to be a fresh topic, not like today, if there is no product price for which a multinational company, it is a strange thing.This does not mean that another multinational drug company has applied for a price reduction in one of its domestic products.

August 18, medicines and medical institutions in liaoning province medical consumables centralized purchasing work leading group office issued a called "about agree with bayer healthcare notice three drug prices.In particular, the three different types of rivastabella, which agree to bayer's pharmaceutical production, cut prices in liaoning province, with a maximum reduction of 65.9%.

This is not an isolated case of multinational drug companies lowering prices in China.From love can tyrone pulmonary hypertension medication wave raw temple the initiative, at a 80% discount from resistance to novartis licensed patents expire 10 year period of active price 2600 yuan, the price of foreign drug companies have been rendered the norm.And behind the price cuts are either the battle for market share or the battle for the dead.The hospital's strict control of drug proportion, medical separation and consistency evaluation...For some multinational drug companies, the tightening policy environment is becoming more and more clear, and it is necessary to prepare for a rainy day.

Why did bayer reduce the price?

The price reduction was paid by bayer, which is called bairito.This is the first oral factor Xa inhibitors directly, as one of the star products of the bayer, worship, completed in 2008, Canada less than a year after the global ipo facilitate in June 2009 to enter the Chinese market, used in adults undergoing elective total hip or prevention of venous thrombosis after total knee arthroplasty.And then new indications are approved, the last in April 2017, : this is used in the treatment of pulmonary embolism in the indications, became the first in China is approved for treatment of pulmonary embolism of new oral anticoagulants.So far, there have been four indications of approval for the listing in China.

In the market, although there are already dozens of drug companies in the country to make the declaration, but so far, there is no domestic li varaban to go on sale.As an exclusive product, bairitoid has continued to increase its sales after the domestic market.Sample hospital sales, according to data from 2014 key cities for the domestic public hospitals, felling shaaban buy medicine amount reached 118.15 million yuan, year-on-year growth of 35.76% a year, while 2016 domestic and cut shaaban overall market is expected to exceed 600 million yuan of the size of the market.

In this case, however, bayer applied for a reduction in the office of the leading group office for the centralized procurement of pharmaceutical and medical supplies for medical institutions in liaoning province.In the end, the drop was significant.The price of 10mg * 5 tablets/box was adjusted from 327.92 yuan/box to 138.00 yuan/box, with a decline of 57.9%.The original network price of 15mg * 7 pieces/box was adjusted to 194.30 yuan/box, with a reduction of 65.9%.The standard of 20mg * 7 pieces/box was adjusted from 709.00 yuan/box to 242.20 yuan/box, with a decrease of 65.8%.

Have learned, at present the laval shaaban anticoagulant indications for prevention and treatment, and in order to ensure a reasonable prevention, treatment costs, meet the demand of patients and the prevention and medical treatment, therefore, taking the initiative on application, making the original more than about 80 yuan of treatment costs can be reduced to 30 yuan, plus health care to submit an expense account, so most of the patients with demand a fundamental can bear.

It is a different place for bayer and other businesses to cut prices in exchange for access to health care.In the 2009 edition of the national health insurance directory, the fvarban oral formulations are available in the national health care catalog, but only with the indications and the lower leg joint replacement.In the 2017 edition of the national health care catalogue, the adaptation is changed to the patients with non-valvular atrial fibrillation and lower limb arthroplasty, which are at high risk for the treatment of adverse or hemorrhagic patients.

The pressure from potential competitors, then, is a possible guess at the current price cuts.According to medical statistics rubik's cube, so far, a total of 49 domestic companies in the generic declaration registration of laval shaaban, among them there are board, jiangsu howson, the weather is fine step pharmaceutical, koren pharmaceutical industry star enterprise.The same is true for multinational drug companies, and there are products that can compete directly with barrito.BMS, for example, and Pfizer's apixaban, which is called alitone.The company entered the domestic market in 2013, after BMS management had publicly stated that it had already exceeded the anticoagulant market prescription.

Another possible guess is the looming expiration of patent pressure.According to the data, rivastaban is set to expire in China in 2020, and the patent cliff is a market challenge for all multinational drug companies, especially in foreign countries.The once-mighty anti-lock drugs, warfarin and clopidogrel, have also been hit by a huge market shock after the patent expired.So it would seem understandable that Mr Rivastaban would cut prices before the patent expired.

But it is worth noting that as the bidding price linkage trend gradually clear, drug firms price behavior, it is difficult to maintain in a single provinces is so predictable, bayer over a period of time in the future or will also gradually adopt new drug prices in other regions, and it is clearly for bayer price system to maintain a challenge, but from the point of the current situation, bayer may have to be prepared for this.

It's also clear that bayer will never let go of the potential growth potential of continuing to tap the star product in livastaban.According to the rubik's cube data, in April 2017, bayer has made a clinical declaration on livastaban particles, which is currently under review.

2 multinational drug companies face price reduction?

For some time, the price reduction of multinational drug companies in China seems to have become an obvious trend.The earliest known case is the sulking of the silent east.

On January 1, 2010, Merck announced unified reduce off the ex-factory price, compared to the development and reform commission (NDRC), the highest price regulation of dropped more than 50%, even more than the same domestic product price is low, poking fun at the industry was "directly reduced the price to the floor.So, largely because the market environment, facing Pfizer's lipitor and astrazeneca then launched a statin, Merck had to reduce the price this way for a certain market space.This is a typical mindset of the first multinational drug companies to choose to cut prices.

Because of the reduction, changed after multinational drug companies product even after the patent period is not in China's big price cuts convention, which opens the multinational pharmaceutical companies in China on precedent, but in terms of the product itself, and off because of the market environment.

And the other's landmark multinational pharmaceutical companies with the price cut is occurred in 2015, the year GSK announced more actively to reduce the price of drugs, part of the original cut from 20% to 30%, which is including he puding, hepsera, viread these three against hepatitis b antiviral star products.

The price cut to the outside world, with 2013 GSK China into the wave of commercial bribery, the event will not only GSK China to the forefront, more important is the local pharmaceutical companies, kims sales model of the multinational pharmaceutical companies have officially become the focus of national comprehensive, long-term fight.

For multinational drug companies, the significance of GSK price is far above the price itself, it opens the multinational drug companies in China market shift, and further the release of the multinational drug companies drugs price loose signal, after the original drug to enjoy in the pricing, and bidding "super national treatment" is also step by step down the altar, multinational drug companies product price level is not "cannot fall".

Therefore, market and policy on drug prices has formed a similar "clip-on" offensive, multinational drug companies no longer blindly high prices to kill itself, chose the price form of all kinds of strategies, severe changes in response to the Chinese market.

On January 1, 2016, the price reduction of "bosheng" belongs to its own needs, and it is fully proactively lowering the price, which is to face the company's response when the patent is about to expire.At that time, he announced that he would reduce the price of his pulmonary arterial hypertension by 80% by himself, while he was facing an inevitable patent crisis.But for pharmaceutical companies, this is often not a short-term response.It is important to know that there was no such conformity assessment in China to import substitute products for full profit, so the company can still maintain a high price for a period of time.But in the long run, taking the initiative to lower prices will undoubtedly lead to better social images, and it will also help in getting into health care.

Gradually rise, on the other hand, the domestic medical power is for multinational drug companies in China market situation to form a major challenge to the power of indigenous innovation medicine, makes the domestic enterprises and multinational pharmaceutical companies in the market rivalry.Therefore, there are also multinational drug companies under the attack of competitors, choosing to make the market response in the way of price reduction.More typically, the thunderball of novartis, under the pressure of compaq, offered to reduce the price by 2600 yuan to form the competitive advantage of the market.In the recent negotiations on drug prices of people's social services department, the price of the thunderball has been reduced again and it has been successfully negotiated into national health insurance.

At the policy level, with the increase of health care the pressure, have Liu Yong case happen again, that level on the one hand to make the country pay health care costs not bottom, on the other hand to give attention to two or morethings arrives drug accessibility, so you need to let the multinational drug companies, and the price, clinical products must return to the level of the patients can could afford.

In this context, the state wants to sit on the negotiating table with multinational drug companies to reach a price acceptable to both sides.This is also the way that most multinational companies choose to cut prices by sacrificing certain market price space in exchange for access to national health insurance, thus achieving the "price change".

In October 2015, the national health development planning commission first joint 16 ministries (bureau) established the drug price negotiation joint inter-ministerial meeting system, organize experts comprehensive carding domestic patent medicine, the sole drug production status, national drug price negotiations, the final tenofovir ester, ek on behalf of the treatment, reduction three drugs were above 50%.In April 2017, people club department announced plans to price negotiations again 44 drug list, 36 products in the form of negotiations after negotiations for health insurance, the vast majority products for multinational drug companies, nearly 70% reduction of the highest.

At this point, the trend of multinational drug companies to reduce prices in China is almost obvious, and it is obvious that this trend will continue to extend.Regardless of the expiration of the patent, competition and other pressures, the domestic pharmaceutical market environment and the policy direction of the multinational drug companies will be a necessity.Strict requirements on the one hand, hospital medicine proportion, cancel the drug addition, etc., make costly drugs in the hospital channel sales increasingly difficult, and the hospital channel is multinational drug companies focus on areas of the market., on the other hand, with the gradually approaching the complete consistency and evaluation of the future through consistent evaluation of domestically produced generic drugs will be paid by medicare, product pricing directly with the original drugs and closed which is bound to be a lot of pressure.

More importantly, the state's support for indigenous innovative pharmaceutical enterprises is gradually increasing, ensuring that the availability of medicines becomes a problem that must be solved in the building of a moderately prosperous society in all respects.General secretary xi said at the national health and health conference that "without universal health, there is no overall prosperity".Previously promulgated by the state council on the reform of pharmaceutical medical equipment examination and approval system of examination and approval opinions, also made a clear emphasis, apply for registration of new drugs enterprise must promise its product in our country, sale price is not higher than the country of origin or peripheral than the market price in China.Visible, super national treatment is gradually stripped of the multinational drug companies, the future of the medical market multinational drug companies and local companies will be back in a fair competition in the interval, but the price, perhaps is the first step for the race began.
 
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