Policy Impact And Market Transformation: Price Reconfiguration And Domestic Substitution Under National Centralized Procurement

Policy Impact and Market Transformation: Price Reconfiguration and Domestic Substitution under National Centralized Procurement The national centralized procurement policy is profoundly altering the market landscape of breast biopsy needles, driving a significant drop in product prices and accelerating the process of domestic substitution. The 2024 national alliance centralized procurement of breast rotary cutting needles led by Zhejiang Province will reduce the average price of this key consumable from around 3,000 yuan to 821 yuan. Based on the estimated first-year contracted quantity, it is expected to save nearly 1.8 billion yuan in costs. The specific impact of the centralized procurement policy: Breast rotary cutting needles are one of the seven national centralized procurement projects determined by the National Medical Insurance Bureau in 2024. This volume-based procurement covers 32 provinces (municipalities, autonomous regions, and military regions), with 3,616 medical institutions participating. The first-year procurement demand was 666,800 needles. The vacuum-assisted breast biopsy system consists of a main unit, a handle, and a rotary cutting needle. The costs of screening and surgery mainly lie in the rotary cutting needle. In the early years, this product was monopolized by imported brands, with a set of rotary cutting needles costing over 6,000 yuan. In recent years, as the competitiveness of domestic brands has improved, most mainstream products have dropped to within 4,000 yuan. However, for bilateral breast cases, the cost for patients can reach tens of thousands of yuan, still posing a relatively heavy burden. Domestic enterprises have achieved breakthroughs and opportunities: Chongqing Xishan Science and Technology Co., Ltd. actively responded to the national policy orientation of "volume-based procurement and price exchange for quantity" in the inter-provincial alliance centralized volume-based procurement of breast rotary cutting needles. With excellent product performance, stable supply capacity, and competitive pricing strategies, it won the first-place share of the domestic brand in this centralized procurement. In 2025, the sales volume of breast rotary cutting biopsy needles is expected to increase by more than 50% compared to the previous year. The company has made breakthrough progress in the high-end medical market, with new access hospitals covering several top domestic teaching tertiary hospitals, including the First Affiliated Hospital of Zhejiang University Medical College, Zhejiang Provincial People's Hospital, Nanjing Drum Tower Hospital, Huazhong University of Science and Technology Tongji Medical College Affiliated Tongji Hospital, and Fudan University Affiliated Obstetrics and Gynecology Hospital, etc. The access of these benchmark hospitals has verified that the company's rotary cutting needles have reached or even exceeded the performance level of imported similar products in clinical performance. Expansion Strategy for the Basic Market: Leveraging the historic opportunity brought by the successful bid in centralized procurement, domestic enterprises are deepening the "equipment + consumables" collaborative strategy in the field of breast surgery. First, they focus on the grassroots market to release the demand for downward penetration. The centralized procurement has significantly reduced the economic accessibility threshold for performing minimally invasive breast biopsy. Through academic training, technical teaching, and the combination of equipment and consumables supply, the company promotes the popularization of breast rotary cutting biopsy technology in county-level hospitals and maternal and child health care hospitals, effectively supporting the construction of the basic breast cancer early screening and diagnosis system. Second, expand the applicable range of surgical methods and gradually replace traditional biopsy methods. Foreign enterprises have responded to this centralized procurement in the same way. International brands such as Mammotome, Hologic, and BD maintain their market positions through technological innovation and product differentiation. For example, Hologic's Affirm Contrast Biopsy Software has obtained CE certification, BD's EnCor EnCompass system has obtained FDA 510(k) certification, and Mammotome's Prima MR system has obtained FDA certification. These high-end products have high technical barriers and still maintain competitive advantages in the high-end market outside of centralized procurement. Industry Integration Driven by Policy: The centralized procurement policy accelerates industry consolidation. Small enterprises face the risk of elimination, while enterprises with scale advantages and technical strength will gain a larger market share. At the same time, the policy prompts medical institutions to shift from price orientation to value orientation, paying more attention to the clinical effectiveness and patient experience of products. In the future, enterprises with innovation capabilities and cost control advantages will stand out in the competition.