The 11th round of China's national centralized drug procurement (NCDP) commenced in Shanghai on the 27th, involving 55 drug varieties and over 400 pharmaceutical companies, averaging 14 competing firms per product. With significantly optimized bidding rules compared to previous rounds, industry participants closely monitored the process, corporate responses, and preliminary selection outcomes.
"A noticeable improvement in this year's procurement mechanism—more rational and promising for future iterations," remarked a Shanghai-based company representative. Observers noted increased composure among bidders, with many expressing satisfaction post-results, describing outcomes as "meeting expectations" or "markedly better than last year."
On the 28th, China’s National Healthcare Security Administration (NHSA) announced preliminary selections: 272 companies secured qualifications for 453 products, with patients expected to access these drugs by February 2025.
**Rational Bidding Reflects Policy Refinements** At 7 AM, representatives queued at Shanghai’s Pullman Hotel to submit materials. One participant competing for diprophylline injections—the most contested product with 39 eligible bidders—highlighted pricing as the decisive factor. Despite its modest RMB 200 million (2023 sales) market size, the drug’s patent-free status and clinical demand fueled intense competition.
Experts noted restrained pricing strategies. Jiang Bin, Deputy Director of Peking University’s Public Policy Research Center, observed no "below-cost" bids, signaling improved rationality. Gu Hai, Director of Nanjing University’s Health Policy Center, credited NHSA’s rule adjustments for stabilizing corporate expectations.
**Key Rule Upgrades Reshape Dynamics** The 11th NCDP introduced four systemic optimizations: 1. **Clinical Stability**: 77% of 46,000 medical institutions specified brand preferences in volume reporting, aligning procurement with real-world usage and minimizing brand switches for patients. Special provisions ensured supply continuity for antibiotics and pediatric formulations. 2. **Quality Assurance**: Stricter bidding thresholds required production experience and clean regulatory records. Post-selection, regulators will enforce full-coverage inspections and testing. 3. **Anti-Dumping Measures**: A "price anchor" and "revival mechanism" compelled cost-based bids, with low bidders justifying pricing structures. 4. **Collusion Prevention**: Associated firms (via equity, contract production, etc.) were treated as single entities. A "leniency-for-first-report" policy targeted bid-rigging alliances, now penalized as "severely dishonest" acts under enhanced credit rules.
**Brand-Based Reporting Elevates Market Leaders** The landmark "brand-specific volume reporting" mechanism, covering 77% of total volumes, empowered clinicians’ brand preferences. Gu Hai termed this a "creative breakthrough," reinforcing established brands’ pricing power while curbing speculative "barefoot" entrants—historically prone to ultra-low bids. Jiang Bin noted reduced incentives for such firms, as rules now mandate two years of production/sales history.
**Selected Outcomes Highlight Competitive Shifts** After 12+ hours of bidding, key results included: - **Dapagliflozin** (RMB 8 billion+ market): 7/14 bidders won, including Hetero Labs and Cipla (India). - **Oseltamivir granules** (RMB 3 billion pediatric flu market): Incumbent Dongyang Sunshine lost to Hunan Huize and Chengdu No.1 Pharma. - **Olaparib** (PARP inhibitor, RMB 1 billion+ sales): 4/9 bidders succeeded, with Huadong Medicine and Qilu Pharma among winners.
**Industry Outlook: From Imitation to Innovation** Guo Xinfeng, GM of Nanjing Evidence-Based Bio, noted dwindling "copycat drug" frenzies, predicting gradual price recoveries in future rounds. NHSA confirmed these optimized principles will extend to upcoming medical consumables and traditional Chinese medicine procurements, institutionalizing standardized, anti-inflationary practices.