New bulk-buy to drive drug price cuts

China’s National Healthcare Security Administration has announced the results of the 11th nationwide centralized drug procurement round, selecting 55 medicines that are expected to be available at reduced prices starting February 2026. The bidding process, held in Shanghai on October 27, included a wide range of therapeutic areas such as infections, allergies, cancers, and chronic conditions like diabetes and high blood pressure. Among the selected drugs are the flu medication oseltamivir, the diabetes drug metformin, and the cancer treatment olaparib. This round saw participation from 794 products across 445 enterprises, with 453 products from 272 companies ultimately chosen. Approximately 46,000 medical institutions had pre-submitted their procurement demands, with 75% of these volumes successfully matched with winning products. The administration emphasized that the selected brands align closely with clinical needs and are produced by established manufacturers with proven supply capabilities and quality assurance. To reinforce quality control, bidding manufacturers were required to demonstrate prior experience in producing the same category of drugs and have a clean manufacturing record over the past two years. Regulatory authorities will conduct comprehensive supervision and inspections of all selected products. The competition in this round was notably more intense compared to previous rounds, prompting the administration to introduce measures to mitigate excessive competition and avoid extremely low bids. These measures included an anchor price reference, a revival mechanism, and proactive communication with companies to encourage reasonable pricing. As a result, the round maintained a relatively high selection rate, with a substantially smaller average price gap among winning drugs compared to earlier batches. The administration also emphasized efforts to prevent bid-rigging and collusion, promoting a fair and competitive market environment. Since its inception in 2018, the centralized procurement program has included a cumulative total of 490 drug varieties through 11 rounds.