And the reason why the renewal of the band purchasing will cause so much concern is that it is related to the redistribution of benefits. Although band purchasing has brought down the price of generic drugs in the catalog, it has also accomplished a number of star companies that won the bidding for band purchasing, enjoying the policy dividends brought by the national procurement. With the continued promotion of consistency evaluation, the early "4 + 7" varieties of the competition pattern has changed, the new evaluation of enterprises are waiting for the original winning enterprises to replace. If the national procurement is the original research and the existing market dominant brand replacement, the renewal of the bid is the existing winning pattern of reshuffle, thirty years east of the river, thirty years west of the river, the wind and water rotating.
Currently have seen the renewal of the bidding program has re-organization of procurement, such as cefadroxil provincial volume purchasing alliance, has been the national procurement of the dosage form requirements must be over the evaluation and the original research enterprises are eligible to participate in the consistency of the evaluation of the competitive landscape did not meet the requirements of the dosage form A, B group bidding. Hebei Province, cefadroxil oral release dosage form re-tendering, the requirement is also only the original research and evaluation of varieties can participate in the exclusive bidding, the lowest price.
Yunnan Province, the first batch of collection of renewed bids and increase the supply of enterprises, the scope of the declaration is with the first batch of national collection of 11 expiration of the renewal of the contract drugs with the same generic name, dosage form and specifications of the drug, the declaration of the conditions is the original research and consistency of the over-assessment. Limit price requirements are also very simple, shall not be higher than the original winning price, different packaging and specifications according to the differential price rules conversion. It is important to note that the reporting of the volume of the link: medical institutions first choose the original selected enterprises in 2020 the amount of the task, the remaining demand in the original selected enterprises and new additions to the list of enterprises involved in the supply of drugs to report the volume, you can choose 1 or more enterprises at the same time supply. 2020 normal supply and willing to continue to supply the original selected manufacturers to 2020 signed an agreement to continue to sign the volume of the 2021 Purchasing agreement. For the additional demand of drugs, the 2021 procurement agreement will be signed on the basis of the medical institutions' own choice of filling in the procurement volume and confirmation by the enterprises. This play is less friendly to unsuccessful companies as opposed to re-tendering.
And today Xinjiang "2 + 4" alliance mining with the amount also played a new trick, a new form of volume price linkage. Specific requirements are "agreed procurement volume is not higher than the agreed procurement volume of 50% of the base, according to the enterprise to reduce the proportion of moderate increase in the agreed procurement volume", a simple understanding is that the lower the price of the greater the volume.
With the normalization of collection and procurement steadily advancing, the future of the traditional sales model of generic drugs will be further dismantled, the industry concentration will be further improved. Now the drug companies need to focus on the problem may need to be shifted from the direction of collection and selection of varieties to the whole chain of optimization and integration, compliance, mergers and acquisitions. The recently announced Ministry of Finance's penetrating inspection of 77 pharmaceutical companies is actually an intrinsic tie-in with the collection and procurement, when the enterprise's generic drug sales model from the original channel into the collection and procurement model, compliance will theoretically be easier. At the same time, with the consistency evaluation of the depth of the year, into the national collection when the trend of more and more selected enterprises, individual varieties of the contribution to the enterprise is more and more limited, how to improve the profitability of a single product through the integration of the industry chain has become the key to the cultivation of the internal strength of the enterprise. At the same time, the increase in industry concentration should also include mergers and acquisitions, enterprises through the advantages of complementary resources, optimize and improve their product line structure. Finally, innovative drugs have been putting forward the concept of the sea, in fact, the overseas market is also very important for generic drug companies. We lament the global TOP10 generic drug companies in the absence of Chinese enterprises, but also need to reflect on their own, only go out to be strong.