A batch of sports medicine orthopedic consumables from Weigao Orthopedics, a leading orthopedic department in China, has been squeezed into the list of the fourth batch of high-value medical consumables in the near future.
According to rough statistics, the average price reduction of sports medicine consumables purchased this time is more than 70%, and it is conceivable that Weigao Orthopedics won the bid this time.
The impact of the large price reduction of centralized procurement on the short-term operating performance of pharmaceutical companies is self-evident, and the short-term impact on Weigao Orthopedics is no exception.
As a leading enterprise with the most complete product line and comprehensive competitiveness in China's orthopedic consumables industry, covering more than 4,500 domestic hospitals and the largest market share among domestic orthopedic manufacturers, Weigao Orthopedics has made great achievements in the centralized procurement of high-value medical consumables since 2021.
However, at the same time, with the gradual implementation of the centralized procurement of these orthopedic consumables since 2022, the revenue and profit of Weigao Orthopedics are also "landing".
In the first three quarters of 2022 and 2023, the year-on-year growth rate of Weigao Orthopedics' operating income will be -444%、-29.99%, and the year-on-year growth rate of net profit attributable to the parent company was -1298%、-74.82%。
Compared with its revenue and profit growth trend in the past few years, such a revenue and profit growth rate is indeed too different.
It is not difficult to see that during the period when the orthopedic centralized procurement was first implemented, the revenue and profit growth and net profit margin of Weigao Orthopedics were greatly negatively impacted.
Of course, the other side of centralized procurement should also be seen.
The centralized procurement born in this round of medical reform, on the one hand, has promoted a sharp decline in medical products, and on the other hand, it has also provided an opportunity for bid-winning enterprises to quickly increase their market share through price-for-volume procurement.
From the perspective of Weigao Orthopedics, in 2022, with the implementation of the centralized procurement of joint orthopedic consumables, the surgical volume of its joint products will increase by 36% year-on-year8%, in the first half of 2023, with the implementation of centralized procurement of spine orthopedic consumables, the surgical volume of its spine products increased by 17% year-on-year, and in the first half of 2023, the surgical volume of its trauma and joint orthopedic consumables increased by % year-on-year.
With the increase of market share, after the implementation of centralized procurement, the business performance of the leading leaders in comprehensive strength has every opportunity to return to the road of growth.
Referring to the past experience, it is believed that after the implementation of the centralized procurement of sports medicine orthopedic consumables, the demand for sports medicine products of Wego Orthopedics will also increase significantly.
In the current domestic sports medicine orthopedic consumables market, the total market share of domestic brands is only about 10%-20%, and in addition to the earlier layout of pure sports medicine product manufacturers, domestic comprehensive orthopedic consumables manufacturers have only begun to layout in recent years, even in this field, Weigao orthopedics, which has been basically laid out, will only have the first product registration certificate for sports medicine products in 2019.
From the perspective of revenue contribution, Weigao Orthopedics' sports medicine products are different from its spine products, joint products, and trauma products with a revenue weight of more than 4 percent last year, and the total revenue of this type of products and bone repair materials, orthopedic surgical instruments and other businesses accounts for only about 15%, which can be said to have little revenue contribution at present.
Next, with the follow-up centralized procurement of its sports medicine orthopedic consumables, there may be an opportunity to see more breakthroughs in the market share and revenue contribution of Wego orthopedic sports medicine products.
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