Summary of Key Points
The 12th batch of national drug procurement auctions was held on July 31, 2026. All 65 commonly used medications, covering areas such as anti-infection, oncology, and cardiovascular diseases, were successfully purchased. A total of 45,000 medical institutions across the country participated in the bidding process, with 521 products from 327 companies selected for purchase. Patients will be able to use these cheaper medications within this year. The biggest highlight of this auction was the selection of 10 original research drugs (including imported, domestically produced, and locally developed versions), thanks to improved procurement rules. These changes not only reduce the medication costs for patients but also balance clinical needs with competition among pharmaceutical companies, while also freeing up healthcare funds to support the development of innovative drugs.
Direct Benefits for Patients: Cheaper, High-Quality Medications Available This Year
The procurement includes medications commonly used by the general public, such as those for lowering blood pressure, blood sugar, and treating tumors, as well as anesthetics. The most significant news is the selection of 10 original research drugs, which were previously expensive due to patent restrictions. With the new rules, these drugs will now be more affordable for everyone. For example, Novartis' sacubitril valsartan (used for heart failure), Bayer's iopromide (for imaging examinations), Eisai's betahistine (for dizziness), and the domestically produced original research drug Wuyi Quwei from Jinzhou Aohong (for emergency use) will all be available at reduced prices in hospitals, significantly reducing the cost of healthcare.
Why More Original Research Drugs Were Selected This Time? Improved Rules Are the Key
In previous auctions (such as the 10th batch), no original research drugs were selected. The change this time is due to revised rules implemented by the Healthcare Security Administration, which make it more attractive for these drugs to participate in the bidding:
- “No Quantity Guarantee” Rule: If an original research drug does not win a “quantity-based procurement” bid but its price is appropriate, it can still be supplied to hospitals without a guaranteed sales volume. This allows the drug to remain in the public hospital market and avoid being completely replaced by generic versions.
- Bidding by Brand: Hospitals can specify the brand of medication they need, reflecting actual clinical requirements and motivating companies to participate more actively.
Other Highlights of the Improved Procurement Rules
The revised rules also aim to make the procurement process more reasonable in several ways:
1. Stabilizing Clinical Supplies: In addition to bidding by brand, the selection criteria have been improved to prevent disruptions in the supply of commonly used drugs due to low prices, ensuring that doctors and patients can continue using familiar medications.
2. Preventing Excessive Competition: The rules discourage companies from submitting bid prices that are too low, potentially leading to production issues or quality decline, encouraging them to offer reasonable prices and maintain stable product quality and supply.
3. Enhancing Access at the Grassroots Level: The new rules ensure that medications are available in township health centers and community hospitals, allowing patients in rural areas and communities to access cheaper drugs without having to travel to larger hospitals.
The Dilemma for Original Research Drug Companies: Lower Prices or Market Withdrawal?
After the patent expiration of original research drugs, they could still retain high prices due to additional costs in the distribution chain. However, with the new procurement system, these drugs must compete with generic versions. To remain in the public hospital market, companies need to lower their prices. This presents a challenge:
- Disadvantages: Profit margins will decrease (for example, from selling for 100 yuan to possibly only 30 yuan).
- Advantages: Companies can maintain a presence in the large Chinese market and sustain sales, which is better than being completely replaced by generics. For instance, companies like Novartis and Bayer are interested in continuing to operate in China.
The Long-Term Benefits of National Procurement
The purpose of these auctions is not to suppress pharmaceutical companies but to achieve two long-term goals:
1. Reducing Excessive Drug Prices: By eliminating unnecessary costs in the distribution process and marketing expenses, drug prices can be brought down, saving patients money and reducing healthcare waste.
2. Supporting Innovation: The funds saved through procurement will be used to fund the development of innovative drugs, such as those for cancer treatment and rare diseases, encouraging companies to invest in more effective new medications.
In summary, the reduced prices of original research drugs are a result of improved procurement rules, benefiting patients significantly. As these rules continue to improve, more affordable and effective medications will become available to the public.