Sinopharm, China Resources, and Shanghai Pharma Subsidiaries Lose Medical Consumables Distribution Rights Amid Nationwide Cleanup
Johnson & Johnson
Medical Device R&D and Manufacturer
Source:Medical Device Distributors Alliance
On November 7, the Zhejiang Provincial Medical Insurance Bureau issued the "Public Notice on the Termination of Distribution Relationships by Medical Consumables Production (Supply) Enterprises."ProposedTerminate 515 Groups of Medical Consumables Distribution Relationships at Once!
According to the public announcement list,The mainly severed relations are with distribution companies within Zhejiang Province.Multiple medicalA large number of subsidiaries under the pharmaceutical distribution giant are also included:
Sinopharm GroupZhejiang Medical Devices Co., Ltd.,Sinopharm GroupJinhua Co., Ltd.,Sinopharm GroupHuzhou Co., Ltd.,Sinopharm GroupLishui Co., Ltd.,Shanghai Pharmaceuticals HoldingWenzhou Co., Ltd., TaizhouShanghai PharmaceuticalPharmaceutical Co., Ltd.,Shanghai Pharmaceuticals Holding(Ningbo) Medical Device Co., Ltd.Shanghai PharmaceuticalsHealthDey Pharmaceutical Co., Ltd. (Zhejiang),China ResourcesLishui Pharmaceutical Co., Ltd.,China ResourcesQuzhou Pharmaceutical Co., Ltd.,Huadong MedicineWenzhou Co., Ltd.,Huadong MedicineJohnson & Johnson Medical (China) Ltd. Equipment and Chemical Branch, etc.
Among themThe number of consumable categories that have been removed is as high as a dozen.From orthopedics, ophthalmology, neurosurgery, general surgery to in vitro diagnostics, non-vascular interventional products, blood purification and extracorporeal circulation, anesthesia-related products, etc.,IncludingJohnson & Johnson, Xinhua, LifeTechWell-known medical device manufacturers such as Johnson & Johnson.
SelfFrom November 7, 2024 to November 20, 2024After the public announcement period, those without objections will be directly deleted without further notice.
▼List of Companies Whose Medical Consumables Distribution Relationships Have Been Terminated▼
(Swipe to view)
Not just this month,Since the beginning of the year, Zhejiang Province's "three-in-one" consumables procurement platform has been actively making moves, and so far, it has announced a full set of...Batch 11List of Terminated Distribution Relationships with Consumables Companies, Contract Reached7000Remaining GroupDistribution Relationship.
At most, each time the distance from the previous batch of lifted names was releasedOne MonthIn about the same amount of time, the next batch follows, showing the rapid pace of governance!
China Accelerates Progress! Major Cleanup of Consumables Distribution Relations
Apart from Zhejiang, such large-scale clearance of distributors' qualifications for consumables delivery,AlsoFrequently across ChinaOccurrence.
On October 8, the Inner Mongolia Medical Procurement Network announcedTongliao CityAs of the end of 2022A total of 552 distribution companies have not traded for more than one year.(Drug 67, Consumable 485), as ofEnd of 2023For more than one yearA total of 855 distribution companies have not made transactions.(Med 63, Consumable 792).
These more than 1,400 enterprises face online interviews and are required to report their rectification status before October 22. Those who fail to report on time will be considered overdue.Lost the qualification for centralized procurement and distribution of medicines and medical consumables in Tongliao City medical institutions.
At the end of April, "On the CancellationOrdosRegionListed for a full year but not involved in online transaction deliveryPublic Notice on Enterprise Distribution Qualification》 Issued,A total of 810 pharmaceuticals and consumables distribution companies have had their qualifications revoked,InvolvedSinopharm, Shanghai Pharma, Jiuzhou Tong, Chongqing PharmaMultiple subsidiaries.
In addition, Inner MongoliaWuhai City、Chifeng City、Baotou City、Xing'an League，Jilin Province，Liaoning ProvinceMany places have successively issued notices to suspend/cancel distribution qualifications, involving companies fromHundreds to thousandsNot equal.
The frequent phenomenon of large-scale pharmaceutical and equipment distribution companies losing their qualifications is actually a signal that the distribution relationship is entering a stage of normalized governance. Not only that, but this year, many places have directly issued documents,Launch the "Major Test" for distribution companies.
As of October 8th, {Xiangxi Autonomous PrefectureMeasures for the Administration of Distribution of Centralized Procurement of Medicines and Medical Consumables in Public Health Institutions (Trial)Implemented since October 1 this year, with a two-year trial period.
"The Measures" clearly stipulateAdopting a quarterly and annual comprehensive evaluation method to assess the distribution of centrally procured drugs and medical consumables.Report on the assessment situation every quarter.The assessment is based on a 100-point system, with scores below 60 considered不合格. OccurrencesThe delivery price is higher than the listed and selected prices, and there are violations of offline delivery regulations for the purchase of listed drugs and consumables.Deduct 5 points for each discovery。
Fujian ProvinceAlso proposed,Starting from June 1 this year, the performance of distribution companies will be evaluated on a monthly basis:All consumable distribution companies due toStocking delays and other self-caused reasons leading to out-of-stock situations, ineffective handling of product distribution issues reported by medical institutions, and penalties imposed by drug regulatory authorities due to quality problems in the product distribution and storage环节., have all become deduction items.Once the examA score below 60 carries a risk of penalties, and serious cases will result in the cancellation of delivery qualifications!
Clearly, as the centralized procurement of consumables and reagents accelerates, price reductions are being steadily achieved. The next step is to streamline the distribution relationships of consumables, eliminate a large number of previously unqualified distribution companies, and increase the concentration of consumables distribution.