Volume-Based Procurement in Mainland China: Key Trends and Planning Future Strategies
Volume-Based Procurement in Mainland China: Key trends and planning future strategies
Volume-based procurement is consolidating generic drug
procurement and reducing drug prices at the national level
Started as 4+7 pilot program in 11 major cities (4 municipalities [Beijing, Tianjin, Shanghai and Chongqing] and 7 provinces [Chengdu, Xi'an, Shenyang,
Dalian, Xiamen, Guangzhou and Shenzen]), and later was extended to the national level.
Parameters
Tender date
Product negotiated
Geographic scope
Procurement contract
duration
4+7 Program
December 8, 2018
25 products
(only GQCE-passed)
4 municipalities and 7
provinces
12 months
VBP Round 1
September 24, 2019
Drugs included in the 4+7
program
National¹
≤2 bid winners: 1 year
3 bid winners: 2 years
VBP Round 2
VBP Round 3
VBP Round 4
January 17, 2020
32 products (non-NRDL /
GQCE-approved drugs)
National
August 20, 2020
55 products (non-NRDL /
GQCE-approved drugs)
National
1 or 2 winners: 1 year
3 winners: 2 years
1 winner: 1 year
2-3 winners: 2 years
≥ 4 winners: 3 years
≥ 4 winners: 3 years
February 04, 2021
45 products (non-NRDL/
GQCE-approved drugs)
National
1 or 2 winners: 1 year
3 winners: 2 years
≥ 4 winners: 3 years
Output
Average price reductions
52%
59%
53%
72%
65.4%
Total value of procurement
$0.3 billion
$0.6 billion
$1.3 billion
$2.2 billion
$3.6 billion
Total volumes²
1.6 billion
4.6 billion
12.4 billion
15.2 billion
6.8 billion
‣ Clarivate™
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