On November 5, 2020, China conducted the first national-level high-value medical consumables centralized procurement bid for coronary stents. The result was announced: the price of stents will drop from an average of 13,000 RMB/PC to about 700 RMB/PC. Compared with the previous year, product prices dropped by more than 90%.
The significance of this centralized procurement of coronary stents, in addition to the price reduction of coronary stent products, will have a greater impact on enterprises and patients, and will also have a profound impact on the overall development of the high-value medical consumables industry.
Why will coronary stents become the country's first product for centralized procurement of medical consumables? And the price drop is so large? Hay Think analyzes that there are four main reasons:
Reason 1: Large clinical dosage
"Large amount" is the first element for coronary stents to become the first product of centralized procurement, because the core of "centralized procurement" lies in "quantity for price", and larger amount for lower Price can achieve a balance between enterprises and the government.
First of all, from the perspective of vascular interventional consumables in the large industry of coronary stents, its market currently accounts for 37% of the high-value medical consumables industry, and it is the market segment with the largest demand for high-value medical consumables.
Coronary stents are currently mainly used in PCI surgery. According to the data on coronary interventional therapy (PCI) in mainland China released at the 22nd National Interventional Cardiology Forum (CCIF 2019) in 2018, the number of surgical cases in my country in 2018 It has reached 915,000 cases. According to the compound growth rate of the past few years, the number of PCI operations in 2019 will exceed 1 million. Based on the current implantation volume of 1.5 per operation, the clinical use of cardiac stents in my country will be Over 1.5 million.
Reason 2: Inflated product prices
The high price of coronary stent products is an important factor in becoming the pilot product of this centralized procurement.
Before this negotiation, the current price of domestic drug-eluting stents on the market is around 7000-12000, while the price of imported products is basically above 15,000. Combined with other intraoperative auxiliary materials and operating costs, the comprehensive cost should be Around 35,000 yuan. Under the current medical insurance system, this is a relatively large burden for the country and patients.
With the conclusion of this negotiation, the average unit price of 13,000 coronary stents has fallen below 700 yuan. Based on the intention to purchase 1.07 million coronary stents, it is estimated that 10.9 billion yuan will be saved.
Reason 3: China's domestic substitution rate is relatively high
From the perspective of the overall development of high-value medical consumables, the degree of import dependence is relatively high, but coronary stents are an exception. From the current market application, China’s localized substitution has reached 75%-80%, which is much higher than other sources. Vascular intervention supplies.
Judging from the results of this centralized procurement proposal, the number of intended purchases in the first year was about 730,000, of which domestic companies accounted for 80%, and two foreign companies [Medtronic and Boston Scientific Corporation] accounted for less than 20%. It can be seen that the competitive advantages of local Chinese companies in the field of coronary stents will be further expanded in the future.
Reason 4: Market demand has great potential
According to the latest "China Cardiovascular Disease Health and Disease Report 2019", there are currently 11 million patients with coronary heart disease in China, but fewer than 1 million people underwent PCI surgery in 2018. PCI surgery is currently the mainstream surgery for coronary heart disease. It can be seen that there is still more room for development.
In addition, compared with the number of PCI operations in major regions of the world, the current number of PCI operations per million people in China is about 656, and there is still a lot of room for development.
Hay Think believes that with the sharp drop in the price of coronary stents and the continuous improvement of the medical insurance system, the number of PCI operations in my country will show a significant upward trend in the future, which will also bring about a substantial increase in the demand for coronary stents. The confidence of centralized mining and the motivation of enterprises to cut prices.