Two-sided effect of drug price liberalization

The rumors of drug price liberalization sparked a wave of turbulence in the market, and some companies are elated and gearing up their wisdom. They believe that by virtue of their market concentration and branding, they can take the opportunity to pull prices higher and take advantage of good times and profits. . Some companies have become disenchanted and discouraged. They think that selling low prices is not a goal, and sales cannot be sold.

If medicine prices are let go, what kind of impact and impact will there be on the prices of various types of products in the market? Whose family is happy? Does the retail price of medicines determine the true basis of the end-product price? How effective does corporate marketing respond, neither lightly nor overreacting?

From the perspective of channel classification, the circulation products are mostly low-value products, and the wholesale purchase price is implemented, and the retail price of drugs is not implemented. The downward adjustment of retail prices has no effect on the entire channel.

OTC products have a certain degree of differentiation. Some products implement a unified retail price, and highly competitive homogenized products carry out parity, which is the preferential price between wholesale price and retail price. With price competition, companies often do not rush to increase prices. However, if the company changes its marketing strategy, it will prompt high-priced products to use the occupying position to block low-priced products across the board, and the prices of retail pharmacies will also be quietly raised. Some products abandon their network connection and clinical sales, and change their OTC and special channels. Sales are also in full swing. Internet pharmacies are also an integral part of the retail industry. Due to experience costs, price advantages are not as obvious as those of physical pharmacies. Compared with price issues, product quality and business standardization need to be ensured and focused.

On the other hand, some of the products that are in short supply due to the supply-demand relationship and monopoly status, as well as products with high market concentration and high degree of concentration and less competition, can realize autonomous pricing. If raw materials increase prices or companies try to increase brand premiums and profitability, The price tag of the product will also be raised. The consequences will also be polarized. They will either earn a full cup or cultivate competitive products and lose their market share. The price is a double-edged sword. It is difficult to raise prices for price cuts. There is no turning back to open bows, and it is necessary to make a careful assessment at the beginning of price increases.

The clinical channel is not directly related to the retail price of pharmaceuticals, and the bid price determines the sales price of the hospital terminal. The bid price for many products is already the floor price. The successful retail price has already shrunk significantly since the retail price of the product. The retail price is just an empty clothes rack and has lost its reference significance. Even if it is an exclusive monopoly product, since many regions have already recorded successful bids, the retail price does not make much sense, and it is even more true for independent pricing products.

What is not clear is how government pricing products will be liberalized. What are the fate of individual pricing or differential pricing products? The significance of liberalization is to effectively reduce the price, or is it left to the market to decide, the government no longer participates in pricing, nor does it implement supervision?

When the policy was not clear enough, some companies were eager to move blindly and dip their prices, but soon discovered that the market did not buy their own enthusiastic accounts. Robbery and rashness are taboos for the military, HOLD live, and see clearly. No matter how the policy changes, it is easy to read and understand, and to do a solid market, you will always see the warm sun in spring. Pharmaceutical companies are also an integral part of the new healthcare reform. When winter comes, it is also necessary to provide enterprises with enough charcoal fire and food. With effective regulation and guidance support to help companies survive the winter. Regardless of the affordability of the company, integration will be well integrated and the disappearance of the market will be more than just low-cost drugs.