Why does medical collection cause the stock price to fall?

Why does centralized drug collection lead to a decline in stock prices?

The impact of this centralized procurement on pharmaceutical companies will gradually turn positive. The varieties of drugs collected this time were mostly dominated by foreign companies before this. Under the background of domestic substitution, foreign pharmaceutical companies are most seriously affected by centralized procurement, and China pharmaceutical companies are the beneficiaries.

Even so, the share prices of many successful bidders are not good recently. Judging from the past winning bids, the company is faced with the possibility of not winning the bid, and the decline in product prices after winning the bid may lead to a slowdown or even a decline in operating performance. In a word, China is not a problem.

What do you mean by centralized drug collection?

Centralized drug purchase is actually centralized drug purchase, which is a procurement law formulated to strengthen the supervision and management of centralized drug purchase in medical institutions, curb possible illegal acts in drug purchase and sale, and ensure that centralized drug purchase in medical institutions is standardized and orderly.

Centralized bidding and purchasing of drugs in medical institutions must follow the principles of openness, fairness, impartiality, honesty and credibility, and accept the supervision of relevant government departments, society and public opinion. All parties involved in centralized drug bidding and purchasing must strictly abide by the relevant laws, regulations, policies and work norms of centralized drug bidding and purchasing in medical institutions.

What are the benefits of centralized drug collection?

There are several advantages:

1, the price of drugs is reduced and the quality is guaranteed. Specifically, it can squeeze out the water of drug price, reduce the burden of drug use, promote the accessibility of drugs, improve the quality of drugs and enhance the level of protection.

2. Purchasing with quantity, combining recruitment and mining. The core of centralized drug procurement organized by the state is to promise to complete the agreed purchase quantity in the procurement cycle in the form of contract. By exchanging quantity for price, we can ensure the use, make clear the market expectation of pharmaceutical companies, so that they don't have to do all kinds of marketing work for drugs to enter hospitals, reduce sales expenses, and really squeeze out the space of high drug prices.

3, government organizations, alliance procurement. By formulating rules and strengthening guarantees, we will guide enterprises to carry out fair competition based on cost and quality, and constantly improve the market-oriented drug price formation mechanism. At the same time, drugs with similar quality and efficacy can compete on the same stage to avoid the phenomenon that "inferior drugs drive out good drugs" in the bidding process.

4. Improve the industry ecology, reduce costs and promote research and development. Some enterprises choose multiple products in centralized procurement. Due to the high procurement execution, the sales cost is greatly reduced, and the payment is returned in time, which gives the enterprise great confidence. At the same time, they actively innovate and develop new products, and their enthusiasm for research and development is greatly improved.

5. Reducing sales costs, stabilizing market expectations, promoting product research and development and centralized procurement are just like a lever to incite industry changes and change the ecology of the pharmaceutical industry.