Analysis On The Impacts Of The Centralized Bidding And Purchase Of Medicine On The Concentration Rate Of Pharmaceutical Industry Market

ObjectiveThis study is to analyze under the environment of centralized bidding and purchase of medicine procurement system in our country, the status quo and trend of the pharmaceutical industry concentration and the differences of biding and purchase accepted concentration rate in different patterns of centralized bidding and purchase of medicine in different provinces (regions). Basis on the research result, we can understand the impact of the centralized bidding and purchase of medicine on the pharmaceutical industry market concentration rate, what the influence factors are, and how the influence mechanism is working. Finally it draws some conclusion about the impact of the centralized bidding and purchase of medicine on the pharmaceutical industry market concentration rate. Then on this basis, and from the point of improving the pharmaceutical industry market concentration, promoting the pharmaceutical industry adjustment and realizing the drugs industry scale production, the study puts forward some suggestion about developing the centralized bidding and purchase of medicine procurement system and enhancing market concentration of pharmaceutical industry.MethodsIn view of special medical policy background of centralized bidding and purchase of medicine in our country, while analyzing the mechanism of the impact of the centralized bidding and purchase of medicine on the pharmaceutical industry market concentration, our study puts forward an innovative influence variables index-the biding and purchasing accepted concentration rate. The research takes the centralized bidding and purchase of medicine procurement implementation scheme, the concentration of pharmaceutical industry in our country, and the centralized bidding and purchase of medicine procurement in some provinces in our country as the research object. The study collected the pharmaceutical industry concentration data from the China statistical yearbook, China’s drug statistical yearbook, and 21 times drug centralized bid procurement result data of 15 provinces in our country from Guangdong medicine bidding and procurement center. Finallly, the study launch an empirical research about the drug centralized bid procurement system impact on market concentration of pharmaceutical industry by using the literature retrieval of evidence-based analysis method, multivariate statistical analysis method, index analysis method, contrast analysis method.ResultsFirstly, the historical evolution of the centralized bidding and purchase of medicine procurement system in our country and domestic typical mode of drug purchase were summarized. Secondly, this study anylyzed the overall market size, present situation and the trend of pharmaceutical industry market concentration in China, and compared the pharmaceutical industry concentration between domestic and some international typical countries in the world. Thirdly, the study lauches empirical analysis on the situation of centralized bidding and purchase of medicine in Guangdong, Guangxi, Sichuan, Hubei, Henan, Fujian, Yunnan seven provinces in 2009, and in Guangdong, Guangxi, Sichuan, Hubei, Henan, Fujian, Jiangxi, Shanxi, Anhui, Xinjiang, Jiangsu, Zhejiang, Shandong, Hunan 14 province in 2011. Through the conclusion of empirical analysis, we can understand how the various aspects of the centralized bidding and purchase of medicine bidding and procurement system influences on the pharmaceutical industry market concentration. ConelusionThe level of pharmaceutical industry market concentration in China is in low degree, and it has a fallen after the implementation of centralized bidding and purchase of medicine procurement system. With the continuous development of the pharmaceutical industry, the enterprise ownership structure of pharmaceutical industry in China has been gradually changed, the production factors and resources has also flow from state-owned enterprises to private enterprises gradually. But the situation of state-owned enterprises dominating the leading position has not changed. The results of empirical analysis in our research shows that the policy of centralized bidding and purchase of medicine in our country effects market concentration rate of pharmaceutical industry by indirect effecting the biding and purchasing accepted concentration rate. In the centralized bidding and purchase of medicine, the provinces with hooking the quantity and price or single supply bidding form of commitment, explicitly stipulating some rules about enterprise scale and competitiveness in the centralized bidding and purchase of medicine procurement implementation scheme, and the lower winning bid price and less quatity of medicine purchase in the drug centralized biding has the higher pharmaceutical industry market concentration rate. At the same time, playing a full role of market regulation and government regulation, allowing the pharmaceutical enterprise reasonable profit space, strengthen the voice of pharmaceutical enterprises in the process of the centralized bidding and purchase of medicine, preventing the drug centralized bid procurement from local protectionism will be beneficial to improve the biding and purchasing accepted concentration rate.