The renewal of winning bids from the insulin volume-based procurement (VBP) tender, initially held in March 2022, has been finalized and is open for public feedback from April 24 to 26. A total of 49 insulin products from 13 manufacturers have been awarded renewed tender spots, with a total contracted value exceeding RMB 6 billion (USD 830 million), marking a 17% increase compared to the 2022 tender round. The average price reduction, when compared with the highest valid quotations, remained generally flat, especially for foreign manufacturers with originator brands, who renewed bids with a minimum price cut of only 1%. YiChang HEC’s (HKG: 1558) insulin aspart faced the steepest price cut requirement at 56%.
Among the manufacturers, Novo Nordisk (NYSE: NVO) led with RMB 1.7 billion (USD 230 million) in contracted values, accounting for 28.6% of the total, which is 19% less than in the 2022 tender. Gan & Lee Pharma secured contracts worth RMB 1.4 billion, a significant increase of 99% from the initial tender, claiming second place. Sanofi’s contract value increased by 14% to RMB 1 billion, while Tonghua Dongbao (SHA: 600867)’s contract amount saw a 13.7% rise to RMB 820 million.- Flcube.com
