Osstem Implant Ranks 1st in China VBP Bidding... Wins Largest Quantity of 490,000 Sets

[Asia Economy Reporter Myunghwan Lee] Osstem Implant has confirmed its strong competitiveness in the Chinese implant market.

Osstem Implant announced on the 11th that it won the largest quantity in the first-year bidding of China's dental implant volume-based procurement (VBP) auction. According to the announcement, Osstem Implant secured 491,090 sets, recording the highest quantity among participating companies. This is 2.3 times the quantity of Company S, the global number one implant company.

The Chinese government introduced the VBP policy this year, which involves directly purchasing large quantities of pharmaceuticals and standardizing prices. When this policy was announced, it was considered the biggest variable affecting the performance of domestic implant companies. Since including implants in the VBP naturally leads to a decrease in supply prices.

An Osstem Implant official stated, "We achieved the planned bidding results with a strategic bid that maximizes sales volume without significantly damaging profits," adding, "As the implementation of VBP lowers the overall cost of implant procedures, there is a high possibility that implant demand in China will greatly increase, so we are carefully preparing strategies to further expand our market share."

Prior to the bidding, Osstem Implant also ranked first in demand volume in a survey conducted among local dental clinics and hospitals. Among the surveyed clinics and hospitals, 47% expressed their intention to purchase Osstem Implant products, with total demand exceeding 600,000 sets. An Osstem Implant official self-assessed, "The VBP implementation, initially perceived as a negative factor, suggests a turning point to increase market dominance."

Meanwhile, Osstem Implant's sales in China in 2022 are estimated to have grown about 26% compared to the previous year, reaching approximately 280 billion KRW. The number of dental clinics trading in China reached about 14,000, and the company estimated that its local market share based on sales reached 28%.

With the implementation of the VBP policy, Osstem Implant plans to expand purchase demand by focusing on promoting the convenience of implant procedures and clinical success rates. At the same time, it plans to strengthen promotion and sales of its premium line to increase market share.