China Launches the 10th Round of Volume-Based Drug Procurement (VBP)

by Angelita Hu Nov 27, 2024

On November 22, 2024, the China National Joint Drug Procurement Office launched the 10th round of volume-based procurement (VBP), involving 62 drugs. Eligible suppliers must provide basic information by 12:00 PM on December 2 and submit their application dossiers by 10:00 AM on December 12.

The 10th round of VBP includes 62 drugs, such as Apremilast Tablets, Esmolol Hydrochloride and Sodium Chloride Injection, Macitentan Tablets, and Pregabalin Oral Solution. Their therapeutic areas include eight key categories: cardiovascular therapeutics, gastrointestinal and metabolic therapeutics, hematologic and hematopoietic agents, neurologic therapeutics, oncologic and immunomodulatory therapies, respiratory therapies, genitourinary and gynecological treatments as well as musculoskeletal system therapies. Cardiovascular therapeutics as well as gastrointestinal and metabolic therapeutics account for the largest portions, comprising 12 and 10 products, respectively.

Compared to the 9th round of VBP, this round introduces several changes, including modifications to the procurement timeline, procurement agreements and requirements for applying companies.

1. Stricter Shortlisting Criteria

Compared to the 9th round, this round shows a reduction in the maximum number of shortlisted companies, increasing the challenge for companies to secure a spot.

Number of companies meeting the eligible product qualification

Maximum number of shortlisted companies

The 10th Round

The 9th Round

1

1

1

2

2

2

3

2

2

4

3

3

5

3

4

6

3

4

7

4

5

8

5

6

9

6

7

10

6

8

11

7

9

12

8

9

13

8

10

14

9

10

15

9

10

≥16

10

10

2. Removal of 50% Price Protection and Introduction of 1.8x Price Adjustment Mechanism

The selection process for shortlisted companies will follow two rules:

Rule 1: Companies will be eligible for the proposed shortlist if their price meets one of the following criteria:

  • The "unit comparable price" is ≤ 1.8 times the lowest "unit comparable price" of the same product

  • For oral solid dosage forms (including effervescent tablets), the "unit comparable price" is ≤ 0.1 CNY; for small-volume injectables, ≤ 1 CNY; and for large-volume injectables, ≤ 2 CNY.

Rule 2: If a company does not qualify under Rule 1, valid applicants who agree to accept the highest proposed price of the same product as determined by Rule 1, can be shortlisted. If only one company is selected for a product under Rule 1, other companies may qualify if they agree to accept 1.8 times the "unit comparable price" of the selected company.

3. More Flexible Procurement Agreements

In the 10th round of VBP, agreements can either be signed annually within the procurement cycle or signed for the full duration, with annual procurement volumes and other key details clearly outlined in the agreement.

4. Emphasis on Drug Traceability Codes

Drugs supplied in this round must be in commonly used clinical packaging and meet the requirements for traceability codes. The packaging must feature a traceability code.

Acting as the drug's electronic identity, the traceability code helps prevent issues such as drug diversion, counterfeit products, and product substitution.

Angelita Hu
ChemLinked Content Manager
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