澳门新葡亰赌场网址China Healthcare:Further execution in 19provinces

generic version of Gefitinib Tablets (吉非替尼片) (anti-cancer)from a,its cholesterollowering efficacy. Other heart and brain medicines on,should now have over 19 provinces to addthese 36 drugs into their RDL.,HK-listed CSPC (1093.HK,hospitals’ outpatient usage reduced by 13% and 5% y-o-y from 8 April to,its outpatient usage of Class I hospitals

澳门新葡亰赌场网址,Heart & brain drugs stunned 1st batch of consistency evaluation.

On 20 Sept 2017, Economics Information Daily (经济参考报) reported that
fouradditional provinces, namely Jiangxi, Yunnan, Gansu and Shanxi, had
included 36high-priced medicines into their provincial reimbursement
drug list (RDL). Thesedrug names are the same as those shortlisted by
the national government on 19July. Including these four provinces, it
should now have over 19 provinces to addthese 36 drugs into their RDL.

According to Xinhua news on 23 July, since the implementation of new
medical reform for Beijing in early 2017, the hospitals and medical
clinics in China’s capital have diagnosed and treated over 60m patients.
At the same time, it has already saved the country RMB35m each day
compared to last year’s figure. This included the saving of drug
procurement cost of RMB1.4bn, with Class III and II (the country’s
highest grade) hospital revenue derived from drug sales reduced to 34%
of total from 42% on average in previous years. The market expects this
will save as much as RMB3bn annually on medicine procurement cost.
Overall, the drug selling price in Beijing has been cut 8% y-o-y in
1H17.

    On 29 Dec 2017, China’s FDA announced the first batch of 17 generic
drug namesfor consistency evaluation on their quality and efficacy
(仿制药质量和疗效一致性评价). Twelve of them were heart & brain
medicines, among ten of which beinganti-hypertension drugs. The other
five drugs were antibiotics, anti-psychotic drugs,anti-cancer and
anti-viral for hepatitis and HIV. The latter anti-viral medicine
fromChengdu Brilliant Pharma (成都倍特药业) was generic version of
Tenofovir?(Disoproxil Fumarate) at 300mg, similar to Sinobiopharm’s
(1177.HK, NR)Qingzhong.

    The article highlighted that, as imported drugs can now be included
into RDL at thebigger expense of selling prices, this makes the cheaper
local-made medicines tobe less competitive in the market. In addition,
the national government will try toimplement this bigger price cut
mechanism on high-priced medicines in exchangefor their volume jump in
most provinces. Coupled with good surveillance of drugcost spending,
Chinese government aims to curb the over-usage of these highpriceddrugs,
including monoclonal antibodies.

    On an interview by Sina News (dated 6 Aug) with an official of
Beijing Municipal Commission of Health and Family Planning
(北京市卫计委), the long-awaited “Hierarchical Medical System
(分级诊疗)” has started to be effective, with Class III and II
hospitals’ outpatient usage reduced by 13% and 5% y-o-y from 8 April to
5 July. Over the same period, its outpatient usage of Class I hospitals
and some grass-root medical clinics has risen by a combined 9% y-o-y.
Note that, within Class III hospitals, the outpatient visits to deputy
physician-in-charge, chief physician in residence, and specialist
doctors have also been cut by 10%/23%/15% y-o-y respectively. In
particular to patients with chronic diseases, some visits are clearly
diverted to lower-cost community clinics or other lower-grade
hospitals.

    Sinobiopharm’s Tuotuo passed consistency evaluation.

    The same source also cited that, with the drug cost reimbursement
amount fixedby the government post negotiation, it would be unlikely to
see bigger selling pricefluctuations to hospitals for these high-priced
medicines. Whereby these drugs areusually (1) to treat critical and rare
diseases such as cancers; and (2) hard toproduce with good barriers of
entry.

    On this revamp, each patient with more complicated illness would
generate at least RMB200 per diagnosis or treatment to hospitals,
compared to a patient with chronic disease paying RMB10 – RMB20 per
visit. Note that, Beijing was ranked #2 of 2016’s total drug sales
among 31 provinces, making up 8.3% of China’s total.