{"id":70490,"date":"2026-07-23T21:22:47","date_gmt":"2026-07-23T13:22:47","guid":{"rendered":"https:\/\/flcube.com\/?p=70490"},"modified":"2026-07-23T21:22:48","modified_gmt":"2026-07-23T13:22:48","slug":"china-announces-12th-national-drug-volume-based-procurement-with-enhanced-pricing-mechanism-and-expanded-participation","status":"publish","type":"post","link":"https:\/\/flcube.com\/?p=70490","title":{"rendered":"China Announces 12th National Drug Volume-Based Procurement with Enhanced Pricing Mechanism and Expanded Participation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The <strong>National Joint Procurement Office<\/strong> announced on July 22, 2026 that the <strong>12th batch of National Volume-Based Procurement (VBP)<\/strong> for pharmaceuticals will open bids on <strong>July 31 in Shanghai<\/strong>. The procurement round has attracted <strong>453 qualified enterprises<\/strong>, with medical institutions submitting a total reported demand exceeding <strong>7.5 billion doses<\/strong> and a planned procurement scale surpassing <strong>\u00a519.5 billion RMB<\/strong> based on maximum valid bidding prices.<\/p>\n\n\n\n<h2 id=\"h-procurement-framework-amp-key-metrics\" class=\"wp-block-heading\">Procurement Framework &amp; Key Metrics<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Parameter<\/th><th>Detail<\/th><\/tr><\/thead><tbody><tr><td><strong>Bid Opening Date<\/strong><\/td><td>31 Jul 2026<\/td><\/tr><tr><td><strong>Location<\/strong><\/td><td>Shanghai<\/td><\/tr><tr><td><strong>Qualified Enterprises<\/strong><\/td><td>453<\/td><\/tr><tr><td><strong>Total Reported Demand<\/strong><\/td><td>&gt;7.5 billion doses<\/td><\/tr><tr><td><strong>Planned Procurement Scale<\/strong><\/td><td>&gt;\u00a519.5 billion RMB<\/td><\/tr><tr><td><strong>Batch Number<\/strong><\/td><td>12th National VBP<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-enhanced-pricing-mechanism\" class=\"wp-block-heading\">Enhanced Pricing Mechanism<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The latest VBP iteration introduces a <strong>dual anchor price system<\/strong> to optimize competitive dynamics:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Anchor Price \u2460<\/strong>: Higher value between the minimum bid price and 1 standard deviation below the average bid price<\/li>\n\n\n\n<li><strong>Anchor Price \u2461<\/strong>: Set at 2 standard deviations below the average bid price<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-selection-criteria\" class=\"wp-block-heading\">Selection Criteria<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Provisional Selection<\/strong>: Enterprises with bid price \u2264 1.8 \u00d7 Anchor Price \u2460<\/li>\n\n\n\n<li><strong>Provisional Winning Qualification<\/strong>: Enterprises with bid price &lt; Anchor Price \u2461 (excluded from shortlist quota, no guaranteed volume allocation)<\/li>\n\n\n\n<li><strong>Post-Bid Adjustment<\/strong>: Unselected enterprises may secure provisional selection by voluntarily reducing prices to the highest provisional winning price in their drug category<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-special-provisions-for-non-shortlisted-enterprises\" class=\"wp-block-heading\">Special Provisions for Non-Shortlisted Enterprises<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Enterprises that submitted valid bids but were not shortlisted can achieve <strong>provisional winning status with tiered volume allocations<\/strong> if they meet all criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>National reported demand for their brand \u2265 national average reported demand across all brands in the category<\/li>\n\n\n\n<li>Do not hold the highest rank in the category<\/li>\n\n\n\n<li>Accept price \u2264 1.8 \u00d7 Anchor Price \u2460 and &lt; maximum valid bid price<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-reference-listed-drug-rld-exception\" class=\"wp-block-heading\">Reference Listed Drug (RLD) Exception<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Non-shortlisted enterprises with <strong>Reference Listed Drug (RLD)<\/strong> status can be treated as selected with <strong>zero agreed procurement volume<\/strong> if they:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Accept price \u2264 3 \u00d7 circuit-breaker anchor (1.8 \u00d7 Anchor Price \u2460)<\/li>\n\n\n\n<li>Accept price &lt; maximum valid bid price<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-market-impact-amp-strategic-implications\" class=\"wp-block-heading\">Market Impact &amp; Strategic Implications<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Increased Competition<\/strong>: The refined pricing mechanism creates multiple pathways to market access, intensifying price competition while providing safety valves for innovative and reference products<\/li>\n\n\n\n<li><strong>Market Consolidation<\/strong>: Smaller players face heightened pressure to achieve economies of scale or risk exclusion from the dominant public procurement channel<\/li>\n\n\n\n<li><strong>Innovation Incentives<\/strong>: The RLD exception preserves market presence for originator products despite non-competitive pricing, maintaining therapeutic choice for clinicians<\/li>\n\n\n\n<li><strong>Revenue Forecast<\/strong>: Participating enterprises must balance aggressive bidding strategies against margin sustainability, with potential revenue displacement of \u00a515-25 billion annually across affected drug categories<\/li>\n\n\n\n<li><strong>Supply Chain Readiness<\/strong>: Winners will need to demonstrate manufacturing capacity to fulfill large-scale commitments, potentially accelerating industry consolidation through strategic partnerships<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Forward\u2011Looking Statements<\/strong><br>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.<a href=\"https:\/\/flcube.com\/\">-Fineline Info &amp; Tech<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Joint Procurement Office announced on July 22, 2026 that the 12th batch of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAownpewDA:productID":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[82],"class_list":["post-70490","post","type-post","status-publish","format-standard","hentry","category-policy-regulatory","tag-vbp-voluem-based-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>China Announces 12th National Drug Volume-Based Procurement with Enhanced Pricing Mechanism and Expanded Participation - Insight, China&#039;s Pharmaceutical Industry<\/title>\n<meta name=\"description\" content=\"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. 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