HomeSildenafil Citrate, Twice Included in China's National Volume-Based Procurement and Generating Over RMB 5 Billion Annually in Off-Hospital Sales, Files IPO Prospectus
Sildenafil Citrate, Twice Included in China's National Volume-Based Procurement and Generating Over RMB 5 Billion Annually in Off-Hospital Sales, Files IPO Prospectus
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Recently, the Shanghai Sunshine Pharmaceutical Procurement Network officially announced the tentative winning results of the ninth national procurement. Five enterprises have been selected for the Citrate Sildenafil Orally Disintegrating Tablets: Jingshi Pharmaceuticals, Hebei Longhai, Sichuan Kelun Pharmaceuticals, Qilu Pharmaceuticals, and Qingdao Huanghai Pharmaceutical. Among them,The lowest price isJing Shi Pharmaceutical reported8.9 RMB/piece,The highest price isQingdao Huanghai Pharmaceutical Co., Ltd. 13.89/piece, the quotations of the other three companies are not much different, all within 10 yuan/piece.
Source: Announcement Document of the 9th National Centralized Procurement
01Sildenafil Included in Centralized ProcurementIt's an "accident."”？Unlike other drugs that, after being included in the centralized procurement, also had a huge impact on the off-hospital market,After Sildenafil was included in the centralized procurement, it still thrived in the off-hospital market, with sales continuing to rise steadily.This is a unique phenomenon in China's national procurement.The reason for this phenomenon is not complicated,Because the main use scenario of this drug is not in hospitals, but outside of them.Before the third batch of national procurement, the industry had thoughtSildenafil will not be included in the medical insurance catalog, nor will it be subject to centralized procurement. BecauseThe Interim Measures for the Administration of Basic Medical Insurance Drugs stipulates:Eight categories of drugs, including contraceptives and drugs that enhance sexual function, are not included in the "Medical Insurance Drug List."In fact,Sildenafil's initial successful centralized procurement might have been an "accident.""It was most likely to be rejected in the first national procurement.". In the third batch of national procurement in 2020,Sildenafil Citrate Tablets OnlyPfizer, Guangzhou Baiyunshan, Yabang Aipusen,Qilu PharmaceuticalFour companies participated. Among them, Qilu Pharmaceutical's Qianwei (Sildenafil Citrate Tablets) has just been approved, belonging to "barefoot.""Product，In order to quickly raise market awareness and establish a user base,Qilu Pharmaceutical Co., Ltd. offered the lowest price of "2 yuan" and became the only winning bidder. According to ZhongkangKaiser data shows,After entering the centralized procurement, Qianwei's share in hospitals rapidly increased, accounting for 75.28% of the nationwide hospital market share in China by 2022.Sildenafil Market Situation in Hospitals Across China（2020-2022）
Source:Zhongkang Kaisi System02Use scenario determinesThe main purchasing channels are outside the hospital.But it is worth noting that，Sildenafil in its first full year (2021) after entering the centralized procurement,In China's retail channels, however, it achieved an 8.3% growth.Sales reached 4.87 billion yuan; In 2022, sales in China's retail channels exceeded 5 billion yuan, with a steady growth of 3%., the market seems not to have been impacted by the price shock of centralized procurement.Among them,Pfizer's Viagra and Baiyunshan's JinGe still occupy the top two positions in the market.In 2022, Viagra achieved over 10% growth in retail channels.。Sildenafil Market Situation in China's Retail Channels（2020-2022）Source: Sino Health Kestrel System03
Both are family planning pharmaceuticals.
LevonorgestrelWhyFailed to win bids in two consecutive national procurement events?In fact, Sildenafil andFailed to be selected in two consecutive national procurement roundsThe situation with levonorgestrel has similarities,Both are family planning pharmaceuticals, and their main sales channels are in the out-of-hospital market.But why is one drug continuously selected twice for bulk procurement, yet its sales outside hospitals are not affected at all, while another drug fails to be selected twice in national procurement, making it seem like the pharmaceutical company is not giving face to the National Healthcare Security Administration?The main reason is still the subtle differences in usage scenarios between the two, one is taken before the event, and the other is taken after the event, andSildenafil still has the demand from patients with pulmonary arterial hypertension, so it still has an indispensable clinical demand in hospitals.In contrast, Levonorgestrel does not have a very significant clinical demand for diseases, and its market share in hospitals is also very small. In the eighth batch of centralized procurement,LevonorgestrelThe centralized procurement amount is only about 2 million yuan, making it the variety with the least procurement amount.Even in the ninth batch of centralized procurement, the National Healthcare Security Administration painstakingly included it.The highest effective bids for the two specifications increased by 2 yuan and 3 yuan respectively, but only brought the centralized procurement amount to around 3.8 million yuan.Compared to the approximately 2 billion yuan in annual sales of levonorgestrel in the retail channel market, the centralized procurement amount is really too small., the failure to secure a bid again is not surprising.
LevonorgestrelMarket Situation of National Retail Channels in China（2020-2022）
Source:Zhongkang Kaisi SystemFinally, a thought-provoking question for everyone: On one hand, the number of newborns in China has declined by about 40% over the past five years, with marriage and birth rates hitting record lows; on the other hand, the government has lifted restrictions on childbirth.Encourage having more children, andContinuously improve and perfect supporting policies such as child-rearing.In this situation, which type of drug—those that increase fertility rates or those that decrease them—has more market potential in the eyes of the government, hospitals, and market users?(Welcome everyone to leave comments below to share your opinions.)
Further Reading:
Sildenafil is a first-line medication for treating erectile dysfunction, and the orally disintegrating tablet, with its unique formulation, takes effect faster and does not require water for swallowing, making it more convenient to take. Pfizer, the original developer, initially launched this new dosage form of orally disintegrating tablets in 2020, which was highly welcomed by the market.
Levonorgestrel is used for female emergency contraception via oral administration. It should be taken within 72 hours after unprotected sexual intercourse or contraceptive failure; taking it in advance is not effective.
(Source:Xinkejie Author:Yu Li)
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