Author: Lin Zhiyin
Since the beginning of this year, some medicines in Baiyun Mountain have been withdrawn from the Internet and stopped being purchased in many provinces. The reasons are puzzling. Now, the truth has been revealed.
On the evening of August 9, the National Medical Insurance Bureau notified Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. The situation of increasing the price of raw materials and falsely raising the price of drugs to obtain funds.
The three companies involved are all controlled subsidiaries of Baiyunshan (600332.SH, 00874.HK).
At present, Tianxin Pharmaceutical and other 3 companies have rectified the prices of 87 kinds of drugs including cefathiamidine for injection involved nationwide as required, excluding the falsely high part of the current price used for bribery, with an average reduction of more than 50%, and some The product specification was discontinued.
Inflated drug prices
According to a survey by the National Medical Insurance Bureau, from 2017 to May 2021, Tianxin Pharmaceutical and other three drug manufacturers colluded with more than 50 downstream drug agents to avoid the "two-invoice system" policy and supervision. Amidine and other 87 kinds of drugs are cashed out by purchasing APIs at inflated prices, and transferring funds to downstream drug agents, involving a huge amount of money, some of which are used to bribe medical staff or specific related parties to carry out illegal drug promotions.
The main method of cashing out is that drug manufacturers and drug agents sign a cooperation agreement to add designated "distributors" in the procurement of APIs, and the "dealers" buy APIs at normal prices, increasing the price several times to ten times. It is sold to pharmaceutical manufacturers several times.
In the name of "rising prices of raw materials and high production costs", pharmaceutical manufacturers have further transmitted the falsely high prices of raw materials to factory and bidding prices.
The “dealers” of APIs are actually controlled by the pharmaceutical agents, and they cash out the income from the price difference obtained by buying low and selling APIs high, and transfer them to the pharmaceutical agents for them to implement pharmaceutical commercial bribery.
Taking cefathiamidine for injection as an example, Baiyunshan Pharmaceutical (preparation factory) and Baiyunshan chemical pharmaceutical factory (raw material factory) belong to the same group, but the cefathiamidine raw material required by the preparation factory is not directly purchased from the raw material factory of the group. Instead, an additional cash-out process is set up. The “dealer” of the API controlled by the agent changes hands, buys low and sells it to the preparation factory and cashes out. The production and circulation links ostensibly comply with the "two-vote system" and other policies and regulations, evading supervision.
Cefathiamidine for injection is an antibacterial drug, used for respiratory system, hepatobiliary system, facial features, urinary tract infection, endocarditis and sepsis caused by sensitive bacteria.
A number of people in the pharmaceutical industry told the First Financial Reporter that the reason why companies can inflate the price of raw materials and inflated prices for cefathiamidine for injection is related to the fact that the product is an exclusive variety of the company.
"Generally speaking, the cost of raw materials accounts for 60% to 70% of the total cost of drugs, and the rest is mainly sales expenses. If it is a common drug, there are a large number of companies that can produce it, and the price of raw materials can be raised by inflating the price of raw materials. The method of high drug price may be difficult to operate. By inflating the price of raw materials for exclusive varieties, part of the costs can be withdrawn, and these costs can also be rationalized. "Huang Xiuxiang, a researcher at the Policy Research Institute of China Pharmaceutical Materials Association, told Yicai.com.cn Say.
Heavy-handed governance with gold sales
Before Baiyunshan was notified by the National Medical Insurance Bureau, since the beginning of this year, drug procurement platforms in many provinces have issued notices on the withdrawal of relevant drugs from many subsidiaries of Baiyunshan and price rectification.
On June 14 this year, the Anhui Provincial Pharmaceutical Centralized Purchasing Service Center issued an announcement stating: "According to the requirements of the National Medical Insurance Bureau, Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. Baiyunshan Pharmaceutical General Factory, Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd. and The relevant drugs produced by Guangzhou Baiyunshan Jingxiutang Pharmaceutical Co., Ltd. have been withdrawn from the Internet and their prices have been rectified. After the rectification, relevant enterprises must ensure the supply and meet the needs of clinical medication. Relevant medical institutions are requested to adjust the in-hospital procurement catalog and drug price information in a timely manner. "
The so-called drug listing means that the Drug Bidding Office conducts a unified procurement of drugs from all manufacturers and operating enterprises. These manufacturers or companies conduct bidding quotations. In the end, similar products with the same specifications and low prices will be selected as shortlisted, that is, winning the bid. Announcement on the Internet means hanging on the Internet.
The withdrawal of some medicines in Baiyun Mountain from the Internet means that they lose the qualification to win the bid, and it also means that the sales of medicines into the hospital are restricted.
The market is worried that this notification from the National Medical Insurance Bureau may affect the overall performance of Baiyun Mountain.
The number of drugs found to be inflated this time is as high as 87, but the National Medical Insurance Administration has not listed the specific drugs.
Judging from the three companies notified this time, they mainly focus on the production of chemical drugs.
According to Baiyun Mountain's 2021 annual report: in 2021, the company's overall operating income will be 69.014 billion yuan, of which chemical drug revenue will be 5.520 billion yuan, accounting for about 8%.
From this point of view, the proportion of business income in this sector is not high.
At present, the National Medical Insurance Bureau stated that Guangdong Province ordered three companies including Tianxin Pharmaceutical and other related companies to comprehensively rectify their marketing models and stop related illegal operations.
In addition, the relevant departments are investigating and punishing those suspected of violating discipline, law and crime.
The National Medical Insurance Administration also stated that it will continue to guide the provinces with relevant departments, according to the implementation of corporate rectification and the facts of violations of laws and regulations identified by relevant departments, to do a good job in the evaluation of pharmaceutical prices and recruitment credit, and to cooperate with relevant departments to continue to correct the field of pharmaceutical purchase and sales. wind.
The National Medical Insurance Bureau also requires the majority of pharmaceutical production and operation enterprises to take a warning, actively regulate their own business behavior, abide by the statutory pricing principles of fairness and reasonableness, honesty and credit, and consistent quality and price, in order to create a clean market environment and industry ecology. effort.
In order to "squeeze out" the inflated price of medicines and reduce the burden of medication for patients, in recent years, the state has continued to crack down on the sale of medicines with gold, and prohibit commercial bribery.
"The behavior of selling with gold is not uncommon in the pharmaceutical industry, and there are various methods of operation. The public notification of Baiyun Mountain this time has once again proved the determination of the state to crack down on this kind of behavior." The first financial reporter said.