The National Drug Alliance Procurement Office, which oversees the Volume-Based Procurement (VBP) program, has issued a statement revealing that six pharmaceutical firms were found to have engaged in collusion during the VBP bidding process for bromhexine in the 7th national tender. The implicated companies are Chengdu Xinjie Hi-tech Development Co., Ltd, Renhe Yikang Group Co., Ltd, Guangzhou Yipinhong Pharmaceutical Co., Ltd, Shijiazhuang No.4 Pharmaceutical Co., Ltd, Shanghai Xudong Haipu Pharmaceutical Co., Ltd, and Jiangxi Yiyou Pharmaceutical Co., Ltd.
In response, the regulatory authorities have rescinded the winning bids of four companies—Xinjie Hi-tech, Renhe Yikang, Yipinhong Pharma, and Yiyou Pharma—and have blacklisted all six firms. Following initial interviews, Xinjie Hi-tech, Renhe Yikang, Yipinhong Pharma, and No.4 Pharma have returned their medical insurance fund earnings and have autonomously reduced the product’s pricing. Moreover, several other drugs have opted for voluntary price cuts.
Recognizing the proactive cooperation and significant information provided by Renhe Yikang, Yipinhong Pharma, and No.4 Pharma during the investigation, their suspension from participating in the VBP has been set for a six-month period, from August 21, 2024, to February 20, 2025. Conversely, Xinjie Hi-tech, Xudong Haipu Pharma, and Jiangxi Yiyou Pharma will face a one-year suspension, extending until August 20, 2025.
The total agreed procurement amount for bromhexine was RMB 635 million. As previously reported, Yipinhong Pharma had been penalized with a fine of RMB 266 million for prior VBP regulation violations concerning bromhexine. Given that all winning bidders for bromhexine have been found in violation, the tender will be nullified, and the drug will be managed online as a non-VBP item in various regions.- Flcube.com
