Weigao, Sanyou Soar as China Opens Bidding for Bulk Buy of Orthopedic Spine Consumables
Lin Zhiyin
DATE:  Sep 27 2022
/ SOURCE:  Yicai
Weigao, Sanyou Soar as China Opens Bidding for Bulk Buy of Orthopedic Spine Consumables Weigao, Sanyou Soar as China Opens Bidding for Bulk Buy of Orthopedic Spine Consumables

(Yicai Global) Sept. 27 -- Shandong Weigao Orthopaedic Device, Shanghai Sanyou Medical and other Chinese medical device makers saw their share prices surge by double-digits today after the country’s healthcare regulator began accepting tenders for the centralized purchase of orthopedic spine consumables. Winning bidders will gain access to China’s vast medical insurance network.

Weigao’s share price [SHA:688161] closed up 13.4 percent at CNY54.34 (USD7.50), Sanyou Medical [SHA:688085] surged 11.8 percent to finish the day at CNY28.78 and Double Medical [SHE:002901] soared 10 percent to end at CNY30.20.

The centralized procurement of orthopedic spine consumables got underway in Shanghai today, said the National Healthcare Security Administration. It is the second round of national-level group purchases in the orthopedics field and the third of costly medical consumables.

Some 1.2 million sets of consumables across 14 product categories are on this year’s shopping list, the administration said. Some 173 firms are expected to participate, including a number of multinationals such as the US’ Johnson & Johnson and Stryker as well as Switzerland’s B. Braun Medical.

Price reductions this time round are likely to be less than in the previous bout of bulk buys of high-value consumables when the price of coronary stents and artificial joints was slashed by more than 80 percent, company insiders told Yicai Global.

The average price cut will probably be around 50 percent, securities firm China Post Global said in a research report. The rules for the procurement this time are not strict and prices are unlikely to be beaten down by much.

Editors: Shi Yi, Kim Taylor

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Keywords:   Bulk-Buy,Shanghai