(Yicai Global) Nov. 30 -- The price in the new round of China’s centralized bulk-buying of coronary stents has risen significantly from the first round, sending the stock price of makers such as Blue Sail Medical soaring.

Blue Sail Medical [SHE: 002382] climbed by the 10 percent daily trading limit to close at CNY9.72 (USD1.36) a share. The company said yesterday that two products made by a unit, JW Medical Systems, would be selected for the centralized procurement program, and the price has jumped from CNY469 (USD65.61) per bar in the first round to CNY824 a bar for one product and CNY845 a bar for the other.

According to a list of proposed bids seen by Yicai Global today, a total of 14 coronary stent products from 10 manufacturers have been selected in this round. Seven are domestic firms, including JW Medical and Lepu Medical, and three are from overseas: Medtronic, Boston Scientific and Abbott Vascular.

The average winning bid price of the 14 products was CNY818, an increase of more than 20 percent from the first round of centralized bulk-buying in 2020.

China set up the National Medical Security Administration in 2018 to centralize the procurement of drugs and medical devices and reduce the financial burden on residents. Coronary stents were the first higher-value medical products to be included, with others for orthopedic surgery and oral implants included later.

Though the price hike in this round is significant, it is partly due to the low base of comparison and many of the companies are still facing losses, an industry insider told Yicai Global, adding that the key takeaway is that centralized procurement prices are becoming more reasonable.

China Merchants Securities pointed out in a research report that in terms of the trend of centralized procurement, the government is taking into account the healthy development of the industry, which is conducive to its sustainable development.

Editors: Dou Shicong, Tom Litting