Why is the price of Sinopharm so high?

For a drug to give a drug rebate to the doctor, there must be a large price difference (profit). So the question arises, where does the profit come from? This drug is your pharmaceutical factory, and your hospital sells it for as much as it says?

No. You're wrong. The relevant departments of the drug (the national medical insurance catalogue is determined by ***, and the provincial medical insurance catalogue is determined by the provincial price department).

Pharmaceutical companies or drug manufacturers are for profit and price difference. Bribes to the relevant pricing authorities. The pricing department that receives the bribe will set you a very high ** or raise ** from the original level.

This results in a huge and outrageous spread. A large part of this is given to the doctor, and the doctor will prescribe medicine to you, so that the sales volume can be high. Only the pharmaceutical factory can operate, and the medical representative can be paid.

But most of the people, including most of our netizens (who are more rational and able to think deeply about the internal reasons), only see the superficial phenomenon. Conclusion: First:

The real reason for the inflated drug ** (outrageously higher than the cost of production) is: the serious corruption of the price department (***). Second:

To whom do the profits from the drugs go? Doctors, of course.

The main reason for the high price of drugs is the unreasonable design of the national system. If the pharmaceutical company is state-owned. Cost pricing. Hospital doctors were changed to civil servants, and the state financed medical care. All the problems will be solved.

Although there is zero price difference for hospital drugs, there are many reasons why drugs are expensive, and here are some possible reasons:

1.High cost of drug production: The production cost of drugs involves multiple links such as R&D, production, and sales, including the cost of raw materials, equipment, labor, etc., which will directly or indirectly affect the drug**.

2.High procurement costs for hospitals: Hospitals also need to pay certain costs when purchasing drugs, including logistics, warehousing, management and other expenses.

3.Drug management costs: Hospitals need to pay for the management of drugs, including pharmacy labor, equipment maintenance, inventory management, etc.

4.Drug market pricing mechanism: The drug market's laughing pricing mechanism will also affect drugs**. Negotiations with drug manufacturers, medical insurance payment standards, drug supervision, etc. will affect the formation of drugs.

5.Market monopoly: Some large pharmaceutical companies have monopolized the production and sales of certain special drugs, resulting in high quality, which is also an important reason for the high level of drugs.

In short, the high cost of drugs is caused by a variety of reasons, and the zero price difference policy of hospitals is only one of them. In order to solve the problem of spinal surplus drugs, it is necessary to establish a reasonable pricing mechanism and regulatory system from multiple aspects such as supervision, market competition, and drug production, so as to ensure that patients can obtain high-quality and low-cost drugs.

Although there is zero price difference for Chinese medicines** in Chinese hospitals, there are still many reasons for the high price of drugs**.

First of all, China's medical insurance system is not yet perfect, and hospitals usually make profits from the sale of drugs to make up for the loss of medical services. Therefore, hospitals often take various measures to increase the amount and specifications of drugs, so as to increase drug sales. This has also led to problems such as over-prescribing and over-medication by doctors.

Secondly, the production cost of China's pharmaceutical industry is relatively high. For example, China's pharmaceutical raw materials often need to be imported, and the technology and equipment level of domestic manufacturers need to be improved. At the same time, the cost and management expenses in the drug production process are also relatively high, and these factors will lead to the rise of drugs.

Finally, competition in China's pharmaceutical market is insufficient. Although a number of policies have been introduced to promote market competition, there are still many companies that lack a sense of competition, drugs are not transparent, market access barriers and other problems still exist, which also leads to the high level of drugs.

Therefore, in order to solve the problem of high drug quality in China, it is necessary to start from many aspects such as supervision, medical insurance system, and drug market competition, and implement comprehensive policies to promote the rationalization and reduction of drug quality. At the same time, it also requires consumers to improve their drug choice and drug awareness, and not blindly follow the trend to buy expensive drugs, so as to reduce medical expenditure.

Although the price difference of the hospital's pharmaceutical products is 0, the high cost of drugs is still caused by a number of factors, including the following:

R&D costs: R&D of drugs requires a lot of time, manpower and capital, and the success rate of R&D is relatively low. Therefore, once a new drug is successfully developed, pharmaceutical companies need to increase R&D costs through high sales prices.

Production cost: The production of drugs needs to go through multiple links, including raw material procurement, production, packaging, quality inspection, etc., each of which requires capital consumption. In addition, some pharmaceutical products may require special technology and equipment to produce, so the production cost will be higher.

Taxes and profits: Drugs also need to pay various taxes and fees during the sales process, such as VAT, income tax, etc. At the same time, drug sellers and manufacturers also need to make a profit.

Market demand and supply: Some drugs may be high because of high demand, while some drugs may be low due to oversupply.

Therefore, the level of drug ** is not completely determined by the cost of the drug, but also affected by various factors such as market demand and policy environment. Of course, in countries with a well-developed medical system, the excessive level of drugs will be controlled through drug control and other means, so that the burden of drug costs on patients can be alleviated.

In recent years, the high price of drugs has always been a pain point for people to see a doctor. In the eyes of industry insiders, the high cost of selling lead in the pharmaceutical industry is the direct cause of the high price of drugs.

To put it simply, the composition of drug prices is divided into three parts: from the production field through the circulation field and then into the consumption field, and in the circulation field through wholesale, retail and other links. Drugs go through each link is a sale, and correspondingly, there is a positive agitation, so that the factory price, wholesale price, and retail price are formed.

Take the most common cold medicine white and black as an example, the minibus went to the drug price inquiry network to take a look, and the price of 12 pieces of white and black with 12 pieces of *2 board specifications was yuan, and the ex-factory price was only yuan, which was 6 times higher. Although 20 yuan is not expensive, in order to cure a cold, you can accept this **, but the factory price of white and black is about the same as a bottle of drink, and the minibus is still a little surprised.

Another children's cold medicine, Xiao Kuike, has a factory price of yuan, and the retail price has reached yuan, which has also increased several times.

From the ex-factory price to the retail price, there is a large price difference in the middle. This price difference is reflected in the financial reports of pharmaceutical companies, which is the sales expenses.

On the one hand, it is because patients lack relevant knowledge and basically follow the doctor's opinion on what drugs to use, which leads to the fact that pharmaceutical companies can only sell drugs if they have a doctor. As a result, a sum of sales expenses cleverly set up for rent-seeking appeared on the accounts of pharmaceutical companies.

But from another point of view, as long as the doctor is done, no matter how high the price of the drug is, it has nothing to do with the patient.

On the other hand, most pharmaceutical companies in China mainly focus on the production of generic drugs and Chinese patent medicines, and the products are homogeneous, which leads to weak pricing power and requires a lot of funds to promote sales.