By Fineline Cube The National Joint Procurement Office announced on July 22, 2026 that the 12th batch of National Volume-Based Procurement (VBP) for pharmaceuticals will open bids on July 31 in Shanghai. The procurement round has attracted 453 qualified enterprises, with medical institutions submitting a total reported demand exceeding 7.5 billion doses and a planned procurement scale surpassing ¥19.5 billion RMB based on maximum valid bidding prices.
Procurement Framework & Key Metrics
| Parameter | Detail |
|---|---|
| Bid Opening Date | 31 Jul 2026 |
| Location | Shanghai |
| Qualified Enterprises | 453 |
| Total Reported Demand | >7.5 billion doses |
| Planned Procurement Scale | >¥19.5 billion RMB |
| Batch Number | 12th National VBP |
Enhanced Pricing Mechanism
The latest VBP iteration introduces a dual anchor price system to optimize competitive dynamics:
- Anchor Price ①: Higher value between the minimum bid price and 1 standard deviation below the average bid price
- Anchor Price ②: Set at 2 standard deviations below the average bid price
Selection Criteria
- Provisional Selection: Enterprises with bid price ≤ 1.8 × Anchor Price ①
- Provisional Winning Qualification: Enterprises with bid price < Anchor Price ② (excluded from shortlist quota, no guaranteed volume allocation)
- Post-Bid Adjustment: Unselected enterprises may secure provisional selection by voluntarily reducing prices to the highest provisional winning price in their drug category
Special Provisions for Non-Shortlisted Enterprises
Enterprises that submitted valid bids but were not shortlisted can achieve provisional winning status with tiered volume allocations if they meet all criteria:
- National reported demand for their brand ≥ national average reported demand across all brands in the category
- Do not hold the highest rank in the category
- Accept price ≤ 1.8 × Anchor Price ① and < maximum valid bid price
Reference Listed Drug (RLD) Exception
Non-shortlisted enterprises with Reference Listed Drug (RLD) status can be treated as selected with zero agreed procurement volume if they:
- Accept price ≤ 3 × circuit-breaker anchor (1.8 × Anchor Price ①)
- Accept price < maximum valid bid price
Market Impact & Strategic Implications
- Increased Competition: The refined pricing mechanism creates multiple pathways to market access, intensifying price competition while providing safety valves for innovative and reference products
- Market Consolidation: Smaller players face heightened pressure to achieve economies of scale or risk exclusion from the dominant public procurement channel
- Innovation Incentives: The RLD exception preserves market presence for originator products despite non-competitive pricing, maintaining therapeutic choice for clinicians
- Revenue Forecast: Participating enterprises must balance aggressive bidding strategies against margin sustainability, with potential revenue displacement of ¥15-25 billion annually across affected drug categories
- Supply Chain Readiness: Winners will need to demonstrate manufacturing capacity to fulfill large-scale commitments, potentially accelerating industry consolidation through strategic partnerships
Forward‑Looking Statements
This brief contains forward-looking statements regarding procurement outcomes, market dynamics, and competitive positioning. Actual results may differ due to risks including final bid submissions, regulatory interpretations, and post-award compliance requirements.-Fineline Info & Tech