On August 21st, the phenomenon of companies abandoning their standards reappeared.
Recently, the pharmaceutical equipment procurement platforms in Inner Mongolia and Hubei Province have successively issued the "Notice on Announcing the Cancellation of Drug Listing Qualification on the Inner Mongolia Autonomous Region Pharmaceutical Procurement Network" and the "Announcement of Information on Enterprise Application for Cancellation of Drug Listing in Hubei Province". According to statistics, a total of 124 drugs in the two regions have been withdrawn from the online listing.
Previously, the cancellation of some drugs on the internet in Sichuan and Gansu provinces has attracted market attention.
Regarding the withdrawal of the enterprise's bid, Shi Lichen, the founder of the third-party pharmaceutical service platform MaxConlai, told reporters that one reason is that the bid price is relatively low, and the enterprise faces rising costs such as raw materials, labor, and tax burdens, resulting in cost inversion and inability to continue production.
"In addition, some regions have completed the drug bidding, and the regions that have not completed the bidding will also refer to the prices in other regions. In order to maintain the market prices in key regions, enterprises have to implement the bid withdrawal strategy.".
Withdrawal of over a hundred drugs
On August 14th, Inner Mongolia issued a notice on the cancellation of drug listing qualifications on the Pharmaceutical Procurement Network. From January 1, 2017 to July 30, 2017, many drugs were stopped production due to reasons such as rising raw materials, production line renovation, and environmental pollution. 27 drug production enterprises (agency enterprises) applied to the region to cancel drug listing qualifications, involving a total of 55 drugs.
According to a reporter's inquiry, products under listed companies such as Fangsheng Pharmaceutical, Kangzhi Pharmaceutical, and Shuangcheng Pharmaceutical are among them.
On August 15th, the Hubei Province Pharmaceutical Equipment Centralized Procurement Service Platform released the "Enterprise Application for Cancellation of Online Listing Information Publicity", with a total of 69 drugs planned to be cancelled online, including products under large pharmaceutical companies such as Bayer, Xinhua Pharmaceutical, and Chenxin Pharmaceutical.
Previously, on June 27th, the Sichuan Provincial Medical Equipment Centralized Procurement Service Center issued a notice announcing the revocation of the listing of 424 quality standard drugs voluntarily applied for by enterprises. On the same day, the Gansu Provincial Public Resources Trading Bureau issued a notice on the cancellation of the qualification for some drugs to win the bid and be listed on the internet (16th batch).
However, for enterprises that withdraw their bids, Inner Mongolia is relatively strict.
The local government requires enterprises to submit a unified domestic non supply guarantee letter, and enterprises must ensure that: "After the withdrawal results of the drugs applied for are announced in Inner Mongolia, if there are supplies in other provinces and cities, they will be included in the list of bad records and be subject to processing by the Inner Mongolia Medical Equipment Centralized Procurement Service Center in accordance with the" Inner Mongolia Autonomous Region Medical Equipment Centralized Procurement Bad Record Management Measures ".
In response to this phenomenon, a senior executive of a pharmaceutical listed company told reporters that the company's move was truly helpless. In some places, the bidding prices were significantly lower than the production costs of the company, and the company had to give up this market.
Frequent use of medication and shortage of medication are "very hurtful"
It is worth mentioning that the drugs involved in the withdrawal of the enterprise's label include many commonly used drugs and shortage drugs. For example, Compound Ganmaoling Tablets, Xiaoer Qingre Zhike Oral Liquid, Dexamethasone Sodium Phosphate Injection, and Montmorillonite Powder are common and low-cost drugs.
On the one hand, the bidding price has been lowered, and the phenomenon of enterprises abandoning bidding has repeatedly occurred. On the other hand, multiple regions have issued warning information on drug shortages.
Enterprises cannot see expected profits and have to abandon the market or even stop drug production
