BEIJING—The National Drug Alliance Procurement Office, which oversees the Volume-Based Procurement (VBP) program, has announced that six pharmaceutical firms have been identified to have colluded during the bidding and negotiation process for bromhexine in the 7th national VBP tender. Among the accused are Chengdu Xinjie Hi-tech Development Co., Ltd, Renhe Yikang Group Co., Ltd, Guangzhou Yipinhong Pharmaceutical Co., Ltd, and Shijiazhuang No.4 Pharmaceutical Co., Ltd, along with Shanghai Xudong Haipu Pharmaceutical Co., Ltd and Jiangxi Yiyou Pharmaceutical Co., Ltd.
In response to the findings, the authorities have decided to not only strip Xinjie Hi-tech, Renhe Yikang, Yipinhong Pharma, and Yiyou Pharma of their winning bid statuses but also to blacklist these companies, alongside non-winning manufacturers Xudong Haipu and No.4 Pharma. Following preliminary interviews, the aforementioned companies, except for Xudong Haipu and Yiyou Pharma, have refunded gains from the medical insurance fund and proactively reduced the product’s price. Additionally, 3-4 other drugs have seen voluntary price reductions in light of the investigation’s findings.
Considering the active cooperation and valuable information provided by Renhe Yikang, Yipinhong Pharma, and No.4 Pharma during the investigation, their eligibility to participate in the VBP has been suspended for a period of six months, from August 21, 2024, to February 20, 2025. Conversely, Xinjie Hi-tech, Xudong Haipu Pharma, and Jiangxi Yiyou Pharma face a 12-month suspension, extending until August 20, 2025.
The total agreed procurement amount for bromhexine was RMB 635 million. It is noteworthy that Yipinhong Pharma had previously been fined RMB 266 million for violating VBP rules related to bromhexine . Given that all four winning companies for bromhexine were found in violation, the tender has been voided, and the drug will be subject to online management as a non-VBP variety in various regions.- Flcube.com
