Volume-Based Procurement in Mainland China: Key Trends and Planning Future Strategies
Volume-Based Procurement in Mainland China: Key trends and planning future strategies
Biosimilars of insulin and monoclonal antibodies are
expected to feature in future VBP updates as authorities
shift focus towards biologics
Potential entries for VBP
Insulins (detemir, degludec, glargine, aspart, lispro)
Therapy area
Digestive metabolic
diseases
IgG1 monoclonal antibodies (such as trastuzumab)
Oncology
Anti-CD20 monoclonal antibodies (such as rituximab)
VEGF inhibitors (such as bevacizumab)
Oncology, Immunology
Oncology
.
•
The authorities are planned to expand VBP to include as many as
500 molecules that have high quality GQCE-certified generics
available in Mainland China. Round five of VBP, expected to take
effect in June 2021, will include 58 molecules-the highest in any
VBP round so far-and will include 12 digestive tract and metabolic
disease therapies, 9 systemic anti-infectives and 8
immunomodulators.
MNCs make up most of the companies that lose out on bids in the
VBP or prefer not to participate in the tendering process. Most of
these MNCs will continue to focus on maximizing their product
sales based on patient loyalty, especially in non-hospital channels.
Up to eight tender winners in a VBP round are allowed to supply
up to 80% of the public hospital network in Mainland China,
leaving only 20% of the entire network for non-winners. Based on
experience of previous VBP rounds, MNC participation continues
to decrease as they prefer to offer premium pricing and cater to
the available 20% market, rather than compete with local generic
firms by offering steep price cuts.
‣ Clarivate™
Source: GBI analysis, Clarivate
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