Artificial joint makers cut prices for China's bulk-buy contracts - state media

Beijing Chunlizhengda Medical Instruments

14/09/2021 13:21

BEIJING, Sept 14 (Reuters) - Domestic and foreign medical
device makers cut prices by over 80% on average for some
artificial joint products in China's latest move to reduce costs
for devices and drugs, state media said on Tuesday. 
    China has launched a national bulk-buy scheme for certain
medical devices and medicines, where manufacturers vie to offer
hefty discounts in exchange for contracts to supply products in
large volumes to public medical institutions and some private
institutions.
    The scheme aims to reduce prices of frequently used,
expensive medical devices that have a sufficient number of
competing manufacturers, authorities had said.
    In the latest bidding round that closed on Tuesday for some
artificial hip and knee joint products, devices from 44
companies, including 30 Chinese makers and 14 foreign firms, are
among bid winners, state broadcaster CCTV said, citing
preliminary results. 
    Preliminary bid winners outside China include Johnson &
Johnson's  JNJ.N  unit DePuy, Stryker Corp's  SYK.N  subsidiary
Howmedica Osteonics, and affiliates of Zimmer Bomet  ZBH.N ,
according to a list published by the procurement office running
the tender.
    The preliminary list also includes domestic companies such
as Beijing Chunlizhengda Medical Instruments  1858.HK  and a
firm-backed by Shenzhen Mindray Bio-Medical Electronics
 300760.SZ . 
    The list does not specify the discounts offered by
preliminary bid winners or how many products they potentially
will supply . 
    The national tender that closed last year for drug-eluting
coronary stents, a tiny tube-like device to help prop blood
vessels open, led to an average price cut of 93%, the state
broadcaster had said.
    Out of the 11 companies bidding for bulk contracts for
stents, eight won the tender, taking 80% of the market volume,
authorities said earlier this month.

 (Reporting by Roxanne Liu and Brenda Goh; Editing by Chizu
Nomiyama)
 ((hongkong.newsroom@thomsonreuters.com; （8610）6627-1277;
Reuters Messaging: roxanne.liu@thomsonreuters.com))