- China has wrapped its 5th round of Volume Based Procurement (VBP)—the scale of this centralized procurement round the largest to date
- At a reported total value of 55 billion yuan, the VBP in Shanghai saw over 200 companies participating and resulted in average price cuts of 56% for the 58 types drugs, in varying formulations, up for grabs during the bidding process, for around 130-150 specifications (final figures yet to be disclosed)
- The previous four rounds of VBP covered a total of 157 varieties, with an average price reduction of 53% across the board, and since the VBP initiative launched in 11 trial cities, VBP has led to annual savings of around 67 billion yuan
SHANGHAI, China – China has wrapped its 5th round of Volume Based Procurement (VBP). The scale of this centralized procurement round was the largest to date.
At a reported total value of 55 billion yuan, the VBP in Shanghai saw over 200 companies participating, with average price cuts of 56%, according to China Central Television (CCTV). Preliminary results show that 11 products from 10 foreign companies were selected, while domestic drug companies, once again, won big—Qilu Pharmaceutical, Chia Tai Tianqing, and Yangzijiang Pharmaceutical had more than 10 of their products selected.
Initially, the 5th round of VBP sought 60 drugs for 202 product specifications, according to a notice from the Joint Procurement Office (JPO) in May. However, two drugs (mifepristone and carbetocin) were excluded from the tender, resulting in 58 drugs, in varying formulations, up for grabs during the bidding process, for around 130-150 specifications (the exact number will be known once the results are officially released).
The most recent notice from the JPO listed the following products: Omega-3 fish oil, Alfacalcidol, Aripiprazole, Esomeprazole, Olopatadine, Oxaliplatin, Benazepril, Bepotastine, Cisatracurium besylate, Bicalutamide, Dabigatran etexilate, Isosorbide mononitrate, Decitabine, Iohexol, Iodixanol, Dutasteride, Docetaxel, Fasudil, Glipizide, Glycopyrrate, Ganciclovir, Potassium sodium hydrogen citrate, Gemcitabine, Carbetocin, Lansoprazole, Lercanidipine, Rivaroxaban, Lipoic acid, Ropivacaine, Potassium chloride, Metoprolol, Mifepristone, Miglitol, Misoprostol, Palonosetron, Propranolol, Saxagliptin, Venlafaxine, Cinacalcet, Thymalfasin, Promethazine, Ipratropium bromide, Fat emulsion amino acid, Medium/long-chain fat emulsion, Bendamustine hydrochloride, Paclitaxel, Azithromycin, Budesonide, Fluconazole, Linezolid, Moxifloxacin, Tinidazole, Cefuroxime, Ceftriaxone, Cefazolin, and Levofloxacin sodium.
Injectables accounted for more than 70% of products eligible for the VBP. Overall, the product specifications covered a range of illness, from hypertension, coronary heart disease, diabetes, and infectious diseases to chronic illnesses, and even cancer (lung, breast, and colorectal cancers).
The previous four rounds of VBP covered a total of 157 varieties, with an average price reduction of 53% across the board. Since the VBP initiative launched in 11 trial cities, VBP has led to annual savings of around 67 billion yuan.
This story is developing. Preliminary results were sourced from Xinhua, Caixin, China Medical News, and CCTV. As more detailed results from the 5th VBP round are released, Pricentric INSIGHTS will issue further analysis.