The National Development and Reform Commission quietly adjusted the price of fourteen vaccines

The recent announcement by the National Development and Reform Commission regarding the adjustment of prices for 14 vaccines included in China's national immunization program has sparked discussions across the pharmaceutical industry. While the broader concerns of the sector are often centered on the basic drug system, this specific notice—titled "Notice on the Formulation of 14 National Immunization Program Vaccine Prices for Recombinant Hepatitis B Vaccines"—was released quietly but carries significant implications. According to the notice, the ex-factory prices of several key vaccines, including the recombinant hepatitis B vaccine, polio attenuated live vaccine (sugar pills), pertussis-diphtheria-tetanus (DT) combination vaccine, measles attenuated live vaccine, mumps-rubella-parotitis triple attenuated live vaccine, and live attenuated Japanese encephalitis vaccine, have been adjusted downward. Some of these reductions were quite substantial, with certain products seeing price cuts of up to 47%. Industry insiders note that such a move could have a major impact on manufacturers, especially those producing large volumes of these vaccines. Tiantan Biological, one of the largest producers of planned immunization vaccines in China, is likely to be among the most affected. The company holds a dominant position in the domestic vaccine market, having captured over 50% of the market share after the SARS outbreak in 2003. Its vaccine division has consistently outperformed the industry average, with a compound annual growth rate of 17.66% between 2003 and 2007. In response to the price adjustments, Tiantan Biological recently announced that its revenue would decrease by more than 100 million yuan annually due to the revised ex-factory prices. Although some vaccines saw price increases, such as the polio sugar pill and group A meningococcal polysaccharide vaccine, the overall effect was still a net loss. The company also noted that the 2009 bidding process for immunization vaccines had largely concluded, so the immediate impact on its current year’s performance was limited. Analysts from Haitong Securities suggest that while the state continues to expand vaccination coverage and increase investment, the downward pressure on vaccine prices will challenge the profit margins of companies like Tiantan Biological. Despite this, the growing demand for immunization programs may help offset some of the losses in the long run. Overall, the new pricing policy reflects a broader effort by the government to make essential vaccines more affordable, but it also highlights the delicate balance between public health goals and the financial sustainability of vaccine manufacturers.

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