Gelonghui, April 23 | Federal Pharmaceutical (03933.HK) announced that the company's wholly-owned subsidiaries, Zhuhai Federal Pharmaceutical Co., Ltd. and the Zhongshan Branch of Zhuhai Federal Pharmaceutical Co., Ltd. participated in the bidding process for centralized national drug procurement (insulin special continuation) (“insulin special continuation”) organized by the State Organization Drug Joint Procurement Office on April 23, 2024. The company's insulin products are to be selected for this centralized procurement.
All of the company's insulin products participated in this insulin collection competition, and all products were selected in Class A. In fiscal 2023, the total sales volume of the products to be selected by the company was RMB 1,117,600,000, accounting for 22.2% of the company's pharmaceutical product revenue.
According to the current special insulin renewal rules, this centralized procurement cycle starts on the execution date of the selection results and ends on December 31, 2027. Pharmaceutical institutions will give priority to the use of selected drugs in this centralized procurement and ensure that the agreed purchase volume is completed. This time, the price of the products to be selected by the company was moderately lowered compared to the sixth batch of centralized procurement of national drugs (insulin special), but the procurement base volume increased significantly by 52.5%. At the same time, all of the company's Class A selected products will also receive the remaining distribution amount.
The proposed selection will help the company expand sales of related products and increase the market share of insulin products. At the same time, we continue to improve the affordability of diabetes products, benefit the majority of diabetics, and have a positive impact on the company's brand influence and future business development.