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The latest round of China’s centralized drug procurement has attracted a record number of bidders, prompting officials to call on pharmaceutical companies to submit reasonable bids and avoid destructive price wars. Approximately 480 pharmaceutical companies participated across 55 drug categories, averaging about 15 bidders per category, according to the National Healthcare Security Administration.
Among the most competitive categories, diprophylline injections—used for respiratory issues like asthma, cardiac dyspnea, and bronchitis—drew a record 45 bidders, surpassing last year’s 36. Other highly contested drugs include ceftizoxime antibiotics and famotidine for heartburn and ulcers, which attracted 43 and 40 bidders, respectively.
In light of this fierce competition, authorities emphasized the importance for drugmakers to carefully evaluate their costs and profitability, advocating for fair and honest pricing strategies. Since its launch in 2018, the centralized procurement program aims to lower public healthcare expenses by organizing regular bulk tenders that secure lower prices from suppliers for public hospitals.
The process limits the number of winning bids to ten per category, leading to the exclusion of many firms, according to Jin Chunlin, director of the Shanghai Health Development Research Center. Despite measures like prohibiting below-cost pricing, competition is still expected to drive significant price reductions.
In the previous round held in December, over 230 companies submitted bids for 385 products across 62 categories. The average price reduction exceeded 60%, with the new prices going into effect in April.
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