Pharmaceutical and biological industry: artificial joint collection price landing event review: price decline better than expected.


Release time:

2021-09-15

On September 14, the National Health Insurance Bureau organized the centralized procurement of artificial joints, resulting in the results of the proposed selection. This is the second batch of medical high-value consumables after coronary stent national collection, the artificial joint centralized belt procurement products include the initial replacement of artificial total hip joint and the initial replacement of artificial total knee joint, with a volume procurement cycle of 2 years, the selected products are expected to be implemented in March next year.

Comments:

Artificial joint collection landed, with an average price drop of more than 80%. According to the joint procurement office of high-value medical consumables organized by the state, the artificial joint products selected in the orthopaedic collection have dropped from the average price of more than 30000 yuan to the average price of less than 10000 yuan. Among them, the average price of the hip joint to be selected dropped from 35000 yuan to about 7000 yuan, with an average price reduction of 80%. The average price of knee joint dropped from 32000 yuan to about 5000 yuan, with an average price drop of more than 84%. The overall price reduction of hip joint and knee joint products reached 82%. Compared with the previous round of medical high-value consumables national collection (heart stent collection price reduction of more than 90%), the second round of collection price reduction is relatively optimistic, we believe that better than market expectations.

From the point of view of the proposed enterprises, domestic and foreign enterprises are positive. A total of 48 enterprises participated in the collection, of which 44 were selected, with a winning rate of nearly 92%. Compared with the first batch of medical high-value consumables national collection, the artificial joint collection of foreign participation significantly increased, participating in the bidding of artificial joint foreign-funded enterprises and local enterprises in the selection rate difference is small. In order to protect the domestic market share, imported artificial joint enterprises actively participate in the collection, which will bring a certain degree of pressure to improve the localization rate of products. Although there is no significant difference in the quality of domestic artificial joints and imported artificial joints, some foreign products have relatively stronger brand advantages; therefore, more efforts are needed to break the domestic artificial joint market dominated by foreign capital.

Aging deepens, health insurance pressure, artificial joint collection has become inevitable. According to the National Bureau of Statistics, the proportion of people aged 60 and over in China will reach 18.70 per cent in 2020, up 5.44 percentage points from 2010, and the proportion of people aged 65 and over will be 13.50 per cent, an increase of 4.60 percentage points from 2010. The prevalence of osteoarthritis in the elderly is relatively high, and the degree of aging continues to deepen, which will inevitably increase the pressure on medical insurance funds, and it is imperative to collect. According to the data of the National Health Insurance Bureau, the products collected this time include artificial hip joints and artificial knee joints, with a total of 540000 sets of intended purchases in the first year, accounting for 90% of the total demand of medical institutions in the country. If calculated according to the purchase price in 2020, the purchase amount of artificial hip and artificial knee joints in public medical institutions is about 20 billion yuan, accounting for more than 10% of the medical high-value consumables market. After the artificial joint collection lands, if calculated according to the 80% price reduction, it is expected to save about 16 billion yuan in related costs.

The collection grouping rules are good for leading enterprises. The collection of artificial total hip and artificial total knee products can be divided into four product system categories, namely, ceramic-ceramic hip product system, ceramic-polyethylene hip product system, alloy-polyethylene hip product system, knee product system. The joint procurement will divide the bidding into groups, and those with strong national supply capacity and large demand from medical institutions will enter group a; Products are regional supply and limited demand enter group B. Under this rule, the winning probability of leading orthopedic enterprises with rich product models and strong comprehensive strength is higher, and the increase in the share of head enterprises will help to increase the concentration of the industry and promote the integration of the artificial joint industry. According to the results of the national organization of artificial joint centralized procurement, A- share and H-share artificial joint listed companies:Weigao Orthopedics,Aikang MedicalThere are products in Group A in four different product system categories;Chunli MedicalIn the ceramic-ceramic hip products system into Group A, but in the knee products lost selection;Dabo MedicalThere are products in Group B in four different product system categories;minimally invasive medicalMeirui also has a product selection.

In the collection environment, enterprise innovation and sea is becoming more and more important, it is recommended to continue to pay attention to strong research and development capabilities, product pipeline-rich related orthopaedic enterprises.

Risk Warning: The prevention and control of the epidemic is not as expected, the market competition increases the risk, the market share after the collection is not as expected, etc.