The Zhitong Finance app learned that Guojin Securities released a research report saying that after the state organizes centralized procurement of intraocular lenses and sports medicine medical consumables, it is conducive to regulating the procurement and use of consumables and improving the industry ecology. It is expected that the products of domestic listed artificial crystals will continue to be released, and domestic replacement of bifocal artificial crystals will begin. The products of a large number of domestic sports medicine companies are still in the early stages of growth and promotion. Companies with a small share after the implementation of this collection are expected to achieve sales volume through collection. It is recommended to focus on enterprises with comprehensive registration certificate layouts and strong production and supply capacity.

Key companies: Aibo Healthcare (688050.SH), Haohai Biotech (688366.SH), Weigao Orthopedics (), Dabo Healthcare (002901.SZ), Chunli Healthcare (), etc. 688161.SH 688236.SH

Incident: On November 30, 2023, the Joint Procurement Office for High-Value Medical Consumables of the State Organization issued the “Announcement on the results of the proposed selection for centralized procurement of intraocular lenses and sports medicine medical consumables”. The results of the fourth batch of state-organized high-value medical consumables were officially released.

Guojin Securities reviews are as follows:

The normalization of health insurance fee control work has progressed, and the overall decline has been moderate.

This collection includes two categories of medical consumables: intraocular lenses and sports medicine. The average price reduction for selected products is about 70%. Among them, the average price reduction for intraocular lens consumables is 60%. It is estimated that the annual cost savings of 3.9 billion yuan will be reduced, and the average price of sports medicine consumables will be reduced by 74%. It is estimated that the annual cost savings will be 6.7 billion yuan. Patients across the country will use selected products from May to June 2024 after this collection and price reduction.

The selection rate of enterprises is high, and the average price decline is stable.

A total of 128 companies participated in this collection. Of these, 126 companies' products were to be selected, and the selection rate reached 98%. The proposed election rules for this collection set guaranteed shortfall rates for different categories. Among intraocular lens products, those with an enterprise price less than or equal to 60% of the maximum effective application price can qualify for the proposed selection; in sports medicine products, those with an enterprise price less than or equal to 40% of the maximum effective application price can qualify for the proposed selection. Companies will have more clear expectations for the winner of the election, and in the end, there will be fewer differences in product prices within the same category. The average price drop in the sports medicine category compared to the maximum price was basically in the range of 60%-70%. In the end, leading domestic and foreign companies with high market share all selected products, maintaining the stability of clinical use.

The artificial crystal products of listed domestic companies won bids well, and they are optimistic that the products will continue to be released.

Aspherical - single focus - non-astigmatized artificial crystals with the highest annual procurement demand. In the A bidding unit, the proposed selection prices for Shenzhen New Industry and Henan Cosmic Products of Haohai Biotech's subsidiary are 784 yuan and 811 yuan respectively, down 44% and 42% respectively from the highest effective application price. The proposed selection rankings are 2nd and 6th, respectively. Distribution agreement procurement volume accounts for 95% and 85% of the procurement requirements of medical institutions, respectively; Aibo Medical plans to select the selected price is 797 yuan, down 43% from the highest effective bid price. Volume accounts for the procurement demand of medical institutions The ratio is 90%. The annual procurement requirements for Aibo Medical and Haohai Biotech's aspheric-single-focal-non-astigmatism products were 283,000 and 194,000 respectively. High demand and proposed selection rankings led to a high distribution ratio, and continued product release can be expected.

Bifocal intraocular lenses have ushered in domestic replacement, and the penetration rate of high-end intraocular lenses is expected to increase.

In the bifocal-non-astigmatism group, Aibo Medical ranked second with a proposed selection price of 2,880 yuan, down 44% from the highest effective application price. The annual procurement demand was 25,790, and its distribution agreement procurement volume accounted for 95% of the procurement requirements of medical institutions. Shenzhen New Industry, a subsidiary of Haohai Biotech, ranked 5th with a proposed selection price of 2,524 yuan. The annual procurement demand was 24,253, and its distribution agreement procurement volume accounted for 90% of the procurement demand of medical institutions. As a product to fill the gap in domestically produced multi-focal intraocular lenses, Aibo Medical was selected with a superior ranking this time, and is also expected to accelerate the domestic replacement of bifocal intraocular lenses. In addition, high-end artificial crystals such as three-focus and extended depth of field have declined significantly compared to previous collections. For example, the maximum effective application price for three-focus-non-astigmatism non-pre-installed products is 19,120 yuan/unit, and Alcon's proposed selection price is 8,996 yuan, which is 53% lower than the highest effective declared price. The penetration rate of high-end intraocular crystals is expected to increase further.

Risk warning: the risk that the price of the product will be reduced too much; the risk that the product will not be covered by medical insurance payments; the risk that the product cost will rise; the risk that sales and promotion of new products will fall short of expectations; the progress of new product development will fall short of expectations.