Anhui Announces Results of High-Value Medical Consumables Centralized Procurement; Dabo Medical Among Winning Bidders

Recently, Anhui Province conducted centralized procurement for two categories of high-value medical consumables: orthopedic implants (spinal) and ophthalmic products (intraocular lenses). On the 14th, the Anhui Provincial Pharmaceutical Centralized Procurement Service Center announced the negotiation results of this procurement.

The announcement revealed that 11 companies won bids in the volume-based procurement for orthopedic spine products, including Double Medical (002901.SZ), Shandong Weigao Orthopedic Materials Co., Ltd., and Medtronic. Four companies secured bids for intraocular lenses, including Eyebright Medical Technology (Beijing) Co., Ltd. and Shenzhen New Industries Ophthalmic New Technology Co., Ltd.

“Domestically produced orthopedic spinal materials saw an average price reduction of 55.9%, while imported categories experienced an average decrease of 40.5%, resulting in an overall average price drop of 53.4%, with the maximum reduction for a single component reaching 95%. For intraocular lenses, domestically produced products had an average price reduction of 18.1%, and imported ones saw an average decline of 20.9%, leading to an overall average price cut of 20.5%. Based on the online procurement amounts for orthopedic spinal materials and intraocular lens products across the province during the first half of 2019, it is estimated that after negotiations, annual savings for these two product categories will amount to RMB 370 million and RMB 29 million, respectively,” announced the Anhui Provincial Medical Centralized Procurement Service Center.

It is reported that starting from August 16, 18 provincial-level public medical institutions in Anhui Province will implement negotiated prices, with the procurement cycle being one year in principle.

To ensure the implementation of procurement volumes, the document also stipulates that public medical institutions must ensure that their annual procurement and usage volume is no less than 80% of the product's volume in 2018.

For products included in the scope of negotiated pricing, all components involved in product bundles from enterprises that do not participate in price negotiations or fail to reach an agreement shall be subject to the following regulations: those originally listed in the Centralized Transaction Catalog shall be transferred to the Record-filing Transaction Catalog; those originally listed in the Record-filing Transaction Catalog shall be placed under key monitoring by the Provincial Healthcare Security Administration.

On July 31, the State Council released the Reform Plan for Governing High-Value Medical Consumables, marking the official commencement of national-level cost containment measures for high-value consumables. Meanwhile, under the guidance of the National Healthcare Security Administration, pilot programs for centralized procurement of high-value consumables at the local level have been vigorously implemented. In addition to Anhui Province, Jiangsu Province has recently launched a pilot centralized procurement program for cardiovascular interventional devices. The initiative organized a consortium of 55 member institutions, estimating the total procurement volume for the alliance based on 70% of the total purchase volume from the previous year (July 1, 2018, to June 30, 2019). The program implemented volume-based procurement for sirolimus-eluting stents and dual-chamber pacemakers.

Based on the negotiation results, the average price reduction for stents selected in the Jiangsu centralized procurement was 51.01%, while the average price reduction for pacemakers was 15.86%. The companies with selected stent products include MicroPort (00853.HK), Lepu Medical (300003.SZ), Abbott, and Medtronic.

(Editor:Wang Xing）

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