Category Archives: Shanghai

Shanghai Opens TCM Procurement Alliance Listing for Fourth Batch

Shanghai, Aug 31, 2026 — Shanghai’s Medical Procurement Center opened the online application channel for the fourth batch and second-batch renewal of the National Traditional Chinese Medicine Patent Medicines and Simple Preparations Purchasing Alliance centralized procurement, requiring selected manufacturers to complete platform registration by Sept 15, 2026.

Policy Snapshot

AttributeDetail
IssuerShanghai Medical Centralized Bidding and Procurement Affairs Management Center
DocumentNotice on Launching Application and Networking for Fourth and Second Batch Renewal of National TCM Patent Medicines Purchasing Alliance
BatchesZCYLM-2026-1 (Fourth Batch); ZCYLM-2026-2 (Second Batch Renewal)
Application windowAug 31, 2026 – Sept 15, 2026
PlatformShanghai Medical Procurement Association portal (www.smpaa.cn)
ModuleBusiness Operations → My Drug Library
Listing typeNon-national centralized procurement related drugs
Sub-typeNational alliance centralized procurement, renewal drugs (selected channel)

Key Provisions

  • Mandatory filing — All drugs on Shanghai’s supply list for the two batches must be registered; previously listed selected drugs are exempt from re-application.
  • Digital workflow — Enterprises log into the procurement subsystem via the SMPAA portal, navigate to the drug library module, and select the designated listing categories to submit product information.
  • Supply lists — Two annexes detail the selected varieties: the fourth batch (ZCYLM-2026-1) and the second-batch renewal (ZCYLM-2026-2).

Market Impact Analysis

The 16-day application window creates a tight compliance timeline for TCM manufacturers seeking to maintain Shanghai market access under the national alliance procurement framework. By routing the fourth batch and renewal products through a dedicated “selected channel” within the non-national centralized procurement category, regulators are preserving the distinction between national volume-based procurement and alliance-level TCM procurement while streamlining the local listing process.

For pharmaceutical companies, failure to register by the Sept 15 deadline risks exclusion from Shanghai’s public hospital and community health center formularies, a significant volume channel in one of China’s wealthiest healthcare markets. The exemption for already-listed products reduces administrative duplication but requires manufacturers to verify their current platform status against the new supply lists.

Forward-Looking Statement

Industry analysts expect Shanghai’s listing template to be replicated across other alliance member provinces in September, as the national TCM procurement alliance synchronizes local platform onboarding ahead of the fourth-quarter procurement cycle. The second-batch renewal mechanism suggests the alliance is transitioning toward a rolling contract model for mature TCM products, potentially reducing annual re-tendering friction. Companies with selected TCM formulations should prioritize the Shanghai digital registration workflow, as delays in the initial listing phase could cascade into missed procurement windows across the alliance network. Final supply list confirmations are anticipated by late September 2026.-China Health Reform Pulse

Policy Source: https://www.smpaa.cn/xxgk/gggs/2026/08/31/24240.shtml

Shanghai Renews Centralized Drug Procurement Contracts for Third Quarter

Shanghai, Aug 24, 2026 — Shanghai’s Medical Procurement Center said it will renew centralized volume-based procurement contracts for selected drugs in the third quarter of 2026, extending agreements with winning manufacturers and their designated distributors after initial purchase volumes were fulfilled.

Policy Snapshot

AttributeDetail
IssuerShanghai Medical Centralized Bidding and Procurement Affairs Management Center
DocumentNotice on the Renewal of Selected Drugs in Centralized Procurement (Q3 2026)
Effective dateSept 20, 2026
ScopeSelected drugs with expired procurement agreements and completed contracted volumes
ActionRenewal of tripartite purchase agreements among procurement center, winning manufacturers, and designated distributors

Key Provisions

  • Automatic renewal trigger — Contracts are extended for drugs that have reached the end of their initial procurement cycle and satisfied contracted purchase volumes under the volume-based procurement framework.
  • Tripartite structure — The procurement center will sign renewed purchase agreements directly with winning enterprises and their appointed distribution partners.
  • Complaint channel — Medical institutions are instructed to report any procurement issues to the procurement center during the renewal process.
  • Residual compliance — Unspecified matters will be governed by existing centralized procurement regulations and the terms of the tripartite agreements.

Market Impact Analysis

The renewal notice underscores Shanghai’s commitment to maintaining supply continuity under its volume-based procurement regime, a national pricing reform that has slashed drug costs by forcing manufacturers to bid aggressively for hospital market share. By automatically extending contracts for drugs that hit volume targets, regulators are signaling stability to winning suppliers while preventing supply disruptions that could arise from abrupt re-tendering.

For pharmaceutical companies, the renewal mechanism reduces regulatory uncertainty for products that have already secured centralized procurement slots, allowing them to plan production and distribution without navigating fresh bidding rounds. However, the notice also implicitly tightens compliance expectations—manufacturers must have fulfilled contracted volumes to qualify, penalizing those that struggled with supply or quality during the initial term.

Forward-Looking Statement

Industry observers expect the Q3 renewal wave to proceed without major disruption, given that eligible drugs have already demonstrated supply reliability. The Sept 20 effective date aligns with Shanghai’s typical procurement calendar, suggesting seamless transitions for hospital formularies. Looking ahead, the renewal template is likely to be replicated in other provincial procurement platforms as volume-based procurement contracts signed during the 2024-2025 national expansion cycle begin maturing, potentially triggering a broader wave of contract extensions across China’s public hospital network in 2027.-China Health Reform Pulse

Policy Source: https://www.smpaa.cn/xxgk/gggs/2026/08/24/24042.shtml

Policy Analysis & Guidance: Shanghai Suspends Procurement Qualification for Non-Compliant Drugs

Shanghai’s Centralized Medicine Bidding and Procurement Office announced on April 15 the suspension of procurement qualifications for certain drugs due to non-compliance with pricing regulations. The action targets Difenidol Hydrochloride Tablets produced by Renhetang Pharmaceutical Co., Ltd., effective from April 15, 2025, at 24:00.

Policy Breakdown and Market Implications

  • Non-Compliance Identified: The suspension stems from the producer’s failure to adjust prices in line with national medical insurance bureau requirements.
  • Product Details: The affected product is Difenidol Hydrochloride Tablets (25mg*12 tablets/board, aluminum-plastic packaging).
  • Regulatory Basis: The move aligns with national healthcare security policies aimed at ensuring drug pricing transparency and compliance.

Industry Impact
This action serves as a clear warning to pharmaceutical companies on the importance of adhering to pricing guidelines. Manufacturers are urged to review and adjust their pricing strategies to avoid procurement disruptions.

Looking Ahead
Stakeholders should monitor how such enforcement actions influence market dynamics and pricing strategies among pharmaceutical firms. The long-term goal is to foster a fair and regulated procurement environment.-China Health Reform Pulse

Policy Source: https://www.smpaa.cn/xxgk/gggs/2025/04/15/16814.shtml