Discontinued batch of drugs (with list)

Release date: 2020-01-10 Views: 0

Source: Cypress Blue  

On January 8th, the Hainan Provincial Centralized Medicine Purchasing Center issued the "Notice on Disclosure of Certain Drugs on the Net (2020.01.08)", and 250 drugs applied to cancel the listing.

The notice shows that these are drug withdrawal applications accepted since April 2019. The publicity period is from January 8, 2020 to January 14, 2020. After the publicity period ends, the non-objectionable drugs will be removed from the network.

A total of 250 medicines were withdrawn from the application this time, of which 171 medicines were discontinued due to rising production costs, improper supply, production line transformation, production line suspension, etc., and 28 medicines were caused by price increases or shortages of APIs. Production was discontinued. Fifteen drugs were discontinued due to the inversion of bid price and cost.

▍Rising API prices

According to the notice, 28 medicines including ligustrazine hydrochloride injection, isatis granules, zaleplon, alprazolam, methimidazole tablets, m-hydroxylamine tartrate injection, vitamin K1 injection, etc., caused the increase in the price of the drug substance. Supply cannot be guaranteed.

These products with rising raw material prices all have obvious characteristics. For example, Banlangen granules are anti-flu Chinese patent medicines, especially in the flu season. The demand is huge; m-hydroxylamine tartrate injection and vitamin K1 injection are emergency medicines, and there have been several shortages; methimazole tablets are commonly used drugs for patients with hyperthyroidism It is also a cheap medicine that has often been out of stock in recent years ...

The Insight database under Dingxiangyuan shows that the prices of many first-aid drugs have remained relatively stable before 2013, and only after 2013 have a slight increase in drug prices. However, by 2018, the prices of many first-aid medicines have started to soar, with an increase of more than 10 times or even as much as 70 times.

For proprietary Chinese medicines, due to rising prices of some traditional Chinese medicines in recent years, the state has tightened the quality control of traditional Chinese medicines, leading to rising production costs.

According to relevant pharmaceutical companies, the price increase or shortage of many inexpensive medicines is due to artificial control of raw materials, which has led to a substantial increase in production costs for manufacturers without raw materials. This is a common phenomenon in the pharmaceutical industry in the past two years. The prices of raw materials such as isoniazid and chlorpheniramine have risen from 2,000 yuan per kilogram to 50,000 yuan.

▍Bid price and cost inversion

It is worth noting that 15 out of the drugs that Hainan Province took the initiative to withdraw from the network this time were unable to continue production and supply due to the inverted bid price and cost.

As we all know, with the recent recruitment and procurement policies of drugs, such as centralized drug procurement, strip procurement, and GPO, the price of drugs has been squeezed lower and lower. In order to preserve the market, some manufacturers have not hesitated to fight the price war, disrupted the price system of their own products, and under the mechanism of national drug price linkage, they cannot afford the pressure brought by low prices.

There are also some products due to the continuous rise in prices such as production costs and raw material costs, but the price of drugs has not risen for more than a decade, or has continued to be pushed down. Once the bid price of a drug is overwhelmed below the cost price, the product naturally cannot Get a foothold in the market.

Although there may also be some benign governance factors that have caused the price to rise, such as environmental protection governance, urbanization, and some disorderly production before governance, etc., causing some costs to rise, this increase is usually 20%, 30%. Within the scope of%, everyone can still accept, and the state is also willing to give subsidies, so that manufacturers can basically maintain production and obtain reasonable profits.

In fact, the state has long attached importance to the price and cost of medicines.

Recently, a letter issued by the Office of the National Medical Insurance Bureau asking for opinions on the “Notice on Doing a Good Job in Current Drug Price Management” has been circulating in the industry. Among them, the price control aspect mentioned:

Relying on the centralized procurement of pharmaceuticals at the provincial level, building a national pharmaceutical public procurement market, unified coding, standards and functional specifications, promoting information interconnection, resource sharing, and policy linkage, comprehensive use of monitoring and early warning, letter interviews, cost surveys, credit evaluation, Means such as information disclosure, gradually improve specific methods and establish a sound regulatory mechanism for the normalization of drug prices.

In terms of supply security, as early as June 2017, the National Health and Family Planning Commission and other 9 departments jointly issued the "Implementation Opinions on the Reform and Improvement of the Drug Supply Guarantee Mechanism for Shortages", which proposed the establishment of a tiered joint response mechanism for shortage drug supply guarantees to implement shortages. Accurate measures for the classification of drug supply guarantees.

In the era of big data and informatization, the upside-down situation of drug prices and costs will be effectively avoided. We expect that with the advancement of the national medical reform and the gradual implementation of various policies to solve the problem of drug shortages, the problem of shortages of drugs can be truly solved and the prices of drugs can become increasingly reasonable.

Attachment: Application for drug withdrawal from Hainan Province (2020.01.08)

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