By Fineline Cube 
The Joint Procurement Office of the National Healthcare Security Administration (NHSA) published the definitive rules for the 11th round of China’s centralized drug procurement program (VBP 11th). 55 drugs, with a total value exceeding RMB 11 billion, will be tendered under a new set of “winning rules” that tighten price limits and clarify volume allocation. Eligible manufacturers must submit their corporate and drug dossiers by 24:00 on September 28 and, if required, revise them by 16:00 on September 29. The bidding window opens on October 21, 2025 at the Pullman Shanghai Qingpu Excellence Hotel.
1. Rule Overview
| Rule | Core Requirement |
|---|---|
| Rule 1 | • Option A – Unit comparable price ≤ 1.8 × anchor price. • Option B – Absolute caps: oral solids ≤ ¥0.1, small‑volume injections ≤ ¥1, large‑volume injections ≤ ¥2. |
| Rule 2 | • Bidders who lose under Rule 1 may win if they accept the highest winning price from Rule 1 or the 1.8× anchor price (if only one Rule 1 winner). • For products with 1–2 bidders and no Rule 1 winner, a price cut ≥ 50 % of the average reduction of other winners qualifies. |
| Rule 3 | • Brand demand ≥ average demand of all brands for that product. • Company must not be the highest‑priced bidder for any other product. • Acceptable price ≤ ( highest winning price from Rules 1/2, average of that price & anchor, or anchor price). |
2. Winning Volume Allocation
| Winning Rule | First‑Year Demand % (Fixed) | Tier‑Based Distribution |
|---|---|---|
| Rule 1 & 2 | 50 % (1 winner) → 50 % 60 % (2 winners) → 60 × {30 %/50 %/80 %} 70 % (3 winners) → 70 × {30 %/50 %/80 %} 80 % (4+ winners) → 80 × {30 %/50 %/80 %} | |
| Rule 3 | Max % (up to 80 %) | Tier 1 = ≥ highest winning/anchor Tier 2 = average of highest winning & anchor Tier 3 = ≤ highest winning/anchor |
Note: If Tier 1, 2, 3 prices are identical, a uniform discount of 80 % (Rule 1/2) or 20 % (Rule 3) applies.
3. Supply‑Region Composition
| Region | Unbranded (Fixed) | Brands with unmet demand (Fixed) | Rule 3 Allocation (Max) |
|---|---|---|---|
| 1 winner | 50 % | 50 % | N/A |
| 2 winners | 60 % | 60 % | 60 × {70 %/50 %/20 %} |
| 3 winners | 70 % | 70 % | 70 × {70 %/50 %/20 %} |
| 4+ winners | 80 % | 80 % | 80 × {70 %/50 %/20 %} |
4. Market Implications
- Price Discipline – The 1.8× anchor or hard caps (¥0.1/¥1/¥2) create a tighter pricing envelope than prior rounds.
- Demand‑Driven Volume – Manufacturers must align production with institutional demand to secure volume; brands that fall short risk losing allocation.
- Strategic Bidding – Firms targeting Rule 3 will need to negotiate final volumes with medical institutions, adding an extra layer of complexity.-Fineline Info & Tech