Economic News
China's 12th batch of centralized drug procurement selects original drugs in record 10 varieties 2026-08-03
Original drugs were procured under 10 varieties in China's 12th batch of bidding for the state-organized centralized drug procurement program, setting a new record high.
A total of 521 products under 65 varieties from 327 pharmaceutical companies were procured in this centralized bidding round that kicked off in Shanghai on July 31, bringing the total number of varieties to 555, according to the National Healthcare Security Administration. About 45,000 medical institutions took part in the process.
Fifteen drugmakers bid on average for each procured product, with the most sought-after product having as many as 49 bidders, the NHSA noted, adding that patients nationwide will likely have access to the procured medications at reduced prices within this year.
This round of bidding brought back the clinical choice to medical institutions, with all drug quantities reported based on brand names. Bids more than two standard deviations below the average price were still eligible for selection but were excluded from the volume or the qualifying quota to curb irrational competition.
The core purpose of centralized procurement is to ensure clinical needs, quality, and supply, so bids must remain within a reasonable range, said Zhu Tongyu, deputy dean of Shanghai Medical College of Fudan University. He hopes that centralized procurement will transition from involution-style competition to a new balance, ultimately achieving a win-win situation for patients, hospitals, health insurers, and the industry.
Participants in this round of bidding have noted a more moderate mindset. "Even if we bid just 20 Chinese cents (3 US cents) higher, we could still be selected," the procurement director at a pharmaceutical company said. “This time, the bids were conservative because we were worried about losing the bid and didn't dare to raise the price.”
Yicai learned that only five of the over 800 product specifications were required to submit a price rationale declaration.
This round of bidding also optimized the 'revival mechanism.' If pharmaceutical companies’ quoted prices for reference formulations -- mostly original drugs -- did not qualify, they could still obtain the qualification if they could bid up to three times the trigger price and less than the highest valid bid.
Ten reference formulations were selected under the 'revival mechanism,' setting a new record. Novartis' sacubitril/valsartan, Bayer's iopromide, Eisai's betahistine, Abbott Laboratories' dydrogesterone, and Guangzhou Green Cross Pharmaceutical's compound amino acids were among them.
As long as the pricing of original drugs and reference formulations is reasonable, they can be ‘revived’ and selected, said Liu Side, director of the Department of Gastroenterology at Nanfang Hospital of Southern Medical University. “Even though they are not volume-based, hospitals have the flexibility for independent procurement, which is a very positive change for clinical practice.”
Changes in the rules show a shift in centralized procurement to 'comprehensive governance' from 'price discovery,' said Jin Chunlin, director of the Shanghai Health Development Research Center. The focus has expanded from solely reducing prices to a multidimensional platform that includes market access, quality supervision, and supply compliance, he noted.
Source: Yicai Global
