The average price of artificial joints in the national centralized procurement is over 80 percent.

2021-09-15: [Original Article Link].

On September 14th, the state organized a centralized procurement of artificial joints in Tianjin. This collection, more than 90% of the participating enterprises have products to bid, the proposed winning products on average decreased by 82%. With the gradual implementation of national collection, the market share of domestic artificial joints is expected to rise. On the afternoon of September 14th, although the results of the collection have not yet been announced, a number of medical device stocks in A and Hong Kong stocks have risen. Among them, Aikang Medical (01789. Hk) once rose nearly 30%, and finally closed up 20.25%, the company announced in the evening, the Group successfully won the bid in all four categories of initial hip and knee system products in the National Band procurement, and therefore determined the price of the Group's relevant product lines in the next two years. The results of the national organization's artificial joint centralized belt procurement are officially released. This artificial joint centralized band procurement products include initial replacement artificial total hip joint and initial replacement artificial total knee joint, with a procurement cycle of 2 years, the successful artificial joint product is next March parts implementation. The first year of intention purchases a total of 540,000 sets of, national medical establishment in 90% of the total demand. By 2020, purchase price calculation in public medical institutions in artificial hip or knee joint procurement amounting to about 20 billion yuan, accounting for high-value medical consumables in more than 10% of the market. A total of 48 enterprises to participate in this collection, 44 selected, the selection rate of 92%. To be successful the mean total hip price from 35,000 yuan fell to 7000 yuan, knee average price from 32,000 yuan fell to 5000 yuan, a price reduction of an average of 82%. The ceramic-ceramic hip joint product of the bidding, Mindray Medical offer 10,500 yuan of the group the highest price, Johnson & Johnson, wei lian, minimally invasive orthopedic equal price is in 8000 yuan, aikang Medical offer 6890 yuan for the lowest group. In the ceramic-polyethylene hip product system quotation, foreign-funded enterprises Stryker reported a low price of 5119 yuan, other enterprises such as Dabo Medical, minimally invasive orthopedics, Jiemai and other quotations are around 7000 yuan. Alloy-polyethylene hip product system quotation, Tianjin Kangerno reported the lowest price of the whole group of 1788 yuan. In the knee joint product collection bidding, Aikang Medical reported a low price of 4599 yuan, Shi Lehui, Stryker, Jiemai and other enterprises are quoted in 5500 yuan. Among the domestic enterprises, Aikang Medical and Tianjin Zhengtian have become the two companies with the largest price cuts. It is reported that the selection rate of the artificial joint import enterprises participating in the bidding and the domestic enterprises is not much different, the participation of foreign-funded enterprises has increased significantly, and the quotation is positive. From the results of the proposed winning bid, the winning products of domestic and foreign enterprises are equally divided, and the winning market share is almost the same. Both domestic and foreign enterprises have products to be selected, including well-known enterprises commonly used in medical institutions, as well as emerging enterprises, taking into account market stability and vitality. This sets adhere to the trick of oneness, volume adhesive hook, in summing up the coronary stent sets build on best practices focused on respect for the clinical needs and joint products characteristics procurement rules have been further explored innovation: the first is to implement procurement according to the product system; The second is to fully consider clinical accompanying services. Prior to this, the National High-value Consumables Joint Procurement Office has specially organized training enterprises to participate in the training, recruitment team leader Gao Xue clearly stated at the training meeting that enterprises are not encouraged to report low prices without bottom line, this is what the country does not want to see, to let enterprises have profits. Last year, many places have been carried out in provinces, Jiangsu artificial hip joint average decline of 47.2%, artificial knee joint average decline of 67.3%; Anhui orthopedic joint Class collection average decline of up to 81.9%. Although the average decline of the national collection is more than the above-mentioned provinces, but compared with the previous national coronary stent collection average price reduction of more than 90% has been relatively mild. The collection of boots landed, although the results of the afternoon collection have not yet been announced, but a shares, Hong Kong stocks have a number of medical equipment stocks have changed. On September 14, A- share Wind medical device index closed up 2.17%. In the afternoon, Weigao orthopedics straight up, intraday once daily limit, and finally closed up 19%. Sanyou Medical, bairen Medical, Daibo Medical, kailitai, heart vein medical and other stocks have followed the rise, and finally closed up 12.43%, 11%, 10%, 9.74%, 6.86%. Hong Kong stocks related to the industrial chain stocks also appeared in late trading. Aikang medical plate rose close to 30%, and finally closed up 20%. Chunli Medical followed the rise, the intraday once rose nearly 15%, and finally closed up more than 10%. In addition, the minimally invasive medical, Venus Medtech-B respectively rose 11%, 9%. A senior researcher in the medical device market told reporters that in the past, imported products had certain advantages in China's joint implant medical device market, and the market share was much higher than that of domestic products. The national collection, domestic products accounted for half of the country, the future with the implementation of centralized mining, the market share of domestic products is expected to rise. The First Securities research report also pointed out that with the aging of the population brought about market scale growth, the penetration rate of products after collection continued to increase, the process of superposition domestic substitution continued to accelerate, the domestic joint leader is expected to grow rapidly. According to the analysis, China 2019, artificial hip and knee replacement surgery in an amount more than 900,000 cases, and continue to take place in the per year, compared with 20% the speed of rapid growth. And 2019, China orthopedic implant market size has reached about 30.4 billion yuan. Weigao Orthopedic said the national artificial joint sets, company's 2 joint brand (Weigao starfish, Weigao Yahua) provided a total of 8 purchasing products bid. Wherein the Weigao starfish of 4 products were in Group A; Weigao Yahua of ceramic-polyethylene-based hip, alloy-polyethylene-based hip 2 products in A group, ceramic-ceramic hip, knee 2 products in Group B. The innovation of Weigao Orthopedics in the field of joints includes multiple directions, such as product line expansion (revision hip joint, revision knee joint, single condyle, shoulder joint, ankle joint, etc.), and the development of new materials and new technology products (ceramic knee joint, carbon fiber peek initial tumor joints, etc.), as well as 3D printing products (tumor customization, initial customization) and orthopedic surgery robots, etc., to expand the moat of orthopedic medical devices. Sanyou Medical said in the semi-annual report that this joint collection fully considered the clinical needs, classified enterprises and materials, and tried to avoid the risk of malicious low-price competition, orthopedic joint domestic head enterprises are expected to further expand market share in the collection, domestic import substitution accelerated. Sanyou Medical believes that centralized procurement will have a profound impact on the orthopedic industry, and the market concentration of the orthopedic industry in the future will be further improved under the influence of the national collection policy. In the long run, the collection has a positive impact on the head companies with original R & D innovation capabilities and scale leadership. As an enterprise with 3D printing customized product registration certificate, Aikang Medical said that the company has 5 customized registration certificates for 3D printing products, which has a strong advantage in revision and reconstruction surgery, and China's joint revision market is on the rise. After this collection, doctors will focus more on the treatment of complex cases, and the demand in this field will increase in the future.

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