Market Comparison Before and after the 3rd Batch of Nationally Sourced Hypoglycemic Drug Metformin

As a well-known hypoglycemic drug, metformin plays an important role in the field of diabetes treatment. It is the widest and largest variety in the field of diabetes in terms of its scope of use and scale.

In the third batch of centralized procurement organized by the state in 2020, the prices of metformin tablets and sustained-release tablets have been greatly reduced. Compared with the highest effective declared price, the average price reduction of sustained-release tablets is 72%, and that of ordinary tablets is more than 80%. A total of 8 companies won the bid. Comparing the number of hospital purchases in the five quarters before and after the implementation, the overall scale has increased significantly by 40%. Among them: Beijing Jingfeng, CSPC Ouyi, and Tianfang Pharmaceutical have increased their share significantly, while the share of Bristol-Myers Squibb, the original manufacturer, has dropped to less than 20%.

However, the price of the upstream chemical product dicyandiamide used to generate metformin raw materials has risen sharply from the end of 2020, and the export price in 2022 has doubled compared to two years ago (related reading: Metformin industry chain two liters and one drop, raw materials Strong layout of pharmaceutical giants). In this context, Shandong Shouguang Fukang Pharmaceuticals, the largest raw material supplier of metformin in my country, has vigorously increased API production capacity since 2021, and has cooperated with Shanghai Pharmaceutical Group to actively expand downstream preparations. Expansion (Related reading: Metformin hydrochloride: Fukang Group's layout of the entire industry chain "one stone to a tablet" to extend and synergize). It is foreseeable that the contract renewal of metformin after two years has added a strong contender.