Shanghai Hosts Yangtze River Delta Alliance VBP Tender for 44 Drugs

Shanghai’s Sunshine Medical Procurement All-in-One (SMPA) has released a document indicating that the city will host the Yangtze River Delta Alliance volume-based procurement (VBP) tender for 44 drugs on December 13, 2022. The tender involves drugs from Shanghai, Zhejiang, and Anhui provinces. The total procurement amount is estimated at around RMB 3.4 billion (USD 475.4 million), based on the highest valid filing prices.

Procurement Details
The 44 products included in the tender are all winning bids from the second to fourth national VBP rounds, with the exception of valsartan and amlodipine II/oral regular dosage form. The procurement cycle will commence from the actual implementation date of the winning results and conclude at the end of 2025. During this period, medical institutions are required to prioritize the winning bids and ensure the completion of the agreed procurement volume.

Evaluation Criteria
The minimum specification of each variety in the procurement list will be taken as the representative specification. The price converted to the minimum unit of measure (UoM) according to the drug price difference comparison rule will be used as the “unit comparable price” (rounded to four decimal places). Drugs with a unit comparable price of ≤ 1.8 times the second-lowest unit comparable price of the same variety, or ≤ the average price of the same variety in the national VBP, will be shortlisted.

Comprehensive Scoring
The comprehensive scores of the shortlisted drugs in the regions that promise to supply each alliance will be calculated based on the “comprehensive evaluation index system.” This system evaluates drugs on dimensions such as price level, quality, efficacy, clinical applicability, production, and market share. Enterprises will be evaluated on quality management level, drug supply guarantee ability, innovation ability, and credit evaluation. The drugs with the highest comprehensive scores will be eligible for the winning bids in each region.

Priority Considerations
Priority will be given to:

  1. Enterprises that have not been assessed as dishonest by the alliance region.
  2. Enterprises that have been assessed first.
  3. Enterprises with large sales volumes in the alliance region in 2021 (sales volumes of multi-specification varieties will be calculated together).
  4. Enterprises that also manufacture the active pharmaceutical ingredients (API) for the tendered products.-Fineline Info & Tech
Insight, China's Pharmaceutical Industry