Preliminary results of bulk-buy drug procurement renewal announced

The National Healthcare Security Administration announced on Tuesday preliminary results of the latest contract renewal for the bulk-buy drugs program, involving 316 types of medicines.

This renewal round applies to drugs from the first eight batches of the national centralized procurement initiative and covers 26 therapeutic areas, including anti-infection, oncology, diabetes, high blood pressure, lipid-lowering agents, as well as disorders in the nerve, respiratory, and digestive systems, according to the administration.

Launched in 2018, China's bulk-buy program negotiates reduced drug prices with manufacturers in exchange for volume-based contracts with public hospitals. These agreements typically run for one to three years.

The administration said that this is the first time that such agreement renewals have been conducted uniformly on a national scale. Previous renewals were generally organized by local authorities.

A total of 51,000 medical institutions submitted their procurement volume requirements, and 1,091 domestic and foreign pharmaceutical companies bid with 4,623 products. Preliminary results show that 4,163 products from 1,021 enterprises have been selected.

The overall selection rate reached 93 percent, with an average of 14 companies chosen per drug. Most clinically essential medicines included in the bulk-buy program have been retained, the administration said.

It added that the process has emphasized stringent quality standards for manufacturers and reasonable pricing in the bidding.

The procurement renewal results are scheduled to take effect at the end of March 2026 and will continue through to the end of 2028.

"The extended procurement cycle will ensure sustained benefits for patients and provide the industry with more stable production and sales outlook," it said.