Tag Archives: VBP

Policy Analysis & Guidance: Henan’s Implementation of National Drug Procurement Results

Henan Province’s Medical Security Bureau has issued detailed guidelines for implementing the results of the tenth batch of national drug centralized procurement, alongside two additional procurement initiatives. The policies, effective from April 30, aim to reduce healthcare costs and ensure broader patient access to essential medicines.

Policy Breakdown

Scope: Includes national-level procurement results, a traditional Chinese medicine (TCM) alliance, and a regional alliance for primary care medications.
Implementation Timeline: Procurement cycles vary from one to two years, with annual contract renewals and provisions for extending cycles.
Supply Mechanism: Backup suppliers are integrated into the procurement framework to ensure continuity, even if primary suppliers fall short.
Pricing Rules: Clear guidelines for setting procurement prices, including benchmarks for non-primary suppliers and delisting criteria for non-compliant products.

Market Implications
The expanded procurement scope, including TCM and regional alliances, signals Henan’s push to rationalize drug pricing across categories. Analysts at Henan Healthcare Institute estimate a 15–20% reduction in procurement costs for participating institutions.

Industry Impact
Pharmaceutical companies must align with Henan’s pricing and supply frameworks to retain market access. The policy emphasizes annual performance reviews and penalties for non-compliance, raising stakes for contract fulfillment.

Looking Ahead
The April 30 implementation will test the province’s ability to balance cost reduction with supply stability. Stakeholders should monitor how backup supply mechanisms and price adjustments impact market dynamics.-China Health Reform Pulse

Policy Source: http://ylbz.henan.gov.cn/2025/04-08/3145778.html

Policy Analysis and Guidance: Guangdong Province’s Ninth Batch of National Centralized Drug Procurement Renewal

Guangdong Province’s Drug Exchange Center has issued a notice regarding the renewal of the ninth batch of national centralized drug procurement for the second procurement year, effective from March 30, 2025, to March 29, 2026. This policy aims to ensure the continuity of drug supply, maintain quality standards, and streamline procurement processes across healthcare institutions.

Key Policy Measures

Viewing Contracted Procurement Volumes
- Process: Medical institutions and selected enterprises can use CA certificates to log into Guangdong’s tender and procurement subsystem to view contracted procurement volumes. This transparency helps in planning and managing drug distribution efficiently.
Tripartite Contract Signing
- Procedure: Medical institutions must initiate tripartite contracts through the subsystem, with detailed operational guidance available on the official website. Timely contract completion by all parties is crucial to ensure smooth implementation.
Quality and Supply Assurance
- Responsibility: Drug manufacturers are held accountable for the quality and timely supply of medications. They must ensure coverage across all participating healthcare institutions in the province, emphasizing reliability in the supply chain.

Policy Orientation and Industry Implications
The renewal initiative underscores Guangdong’s commitment to:

Supply Stability: Ensuring uninterrupted drug supply to healthcare facilities.
Quality Control: Maintaining high standards for drug quality through clear accountability.
Efficiency: Streamlining procurement processes to enhance operational effectiveness.

Conclusion
Guangdong’s approach to centralized drug procurement renewal sets a precedent for regional pharmaceutical management, emphasizing reliability, quality, and efficiency. Stakeholders should adhere to these guidelines to optimize compliance and ensure patient access to essential medications.

Policy Source: https://www.gdmede.com.cn/announcement/announcement/detail?id=1905839740230307840

Policy Analysis and Guidance: Shanghai Announces Second Supply and Incomplete Specification Enterprises for National Drug Procurement

Shanghai’s Medical Centralized Bidding and Procurement Affairs Management Office has released a notice announcing the determination of second supply and incomplete specification supply enterprises for the tenth batch of national centralized drug procurement. This initiative aims to ensure the stability of drug supply and adaptability to market dynamics, reflecting Shanghai’s commitment to optimizing its centralized procurement system.

Key Policy Highlights

Second Supply and Incomplete Specification Enterprises
- Purpose: To address market gaps and ensure uninterrupted drug supply.
- Criteria: Determined based on market share and economic factors.
Market Dynamics Adaptation
- Flexibility: Provides flexibility in responding to market changes and supply chain disruptions.
Attachment Details
- Lists: Includes detailed lists of second supply and incomplete specification supply drugs for reference by relevant stakeholders.

Policy Orientation and Industry Implications
The announcement reflects Shanghai’s strategic focus on:

Supply Chain Resilience: Ensuring continuous drug availability through diversified supply sources.
Market Adaptability: Adapting procurement strategies to meet evolving market conditions.
Transparency: Enhancing clarity and accessibility of procurement information for stakeholders.

Conclusion
Shanghai’s approach to determining second supply and incomplete specification enterprises underscores its commitment to maintaining a stable and responsive pharmaceutical market. This policy supports the reliability of the centralized procurement system and ensures patient access to essential medications. Stakeholders should stay informed of these updates to maintain operational efficiency and compliance.-China Health Reform Pulse

Policy Source: https://www.smpaa.cn/xxgk/gggs/2025/03/26/16522.shtml