Incentives added to support China’s rollout of centralized procurement

As China begins the nationwide rollout of its centralized procurement program for generics and off-patent originator drugs, the government has released additional guidelines that include incentives to encourage use of the drugs.

In September, China’s Joint Procurement Office outlined a plan for national implementation of its pilot procurement program for 25 drugs, which would allow one, two or three winning bidders with the lowest prices for each drug to gain a total of 50%, 60% or 70% of market share, respectively. The pilot program identified a single winner for each drug (see “China Moves to Take Centralized Procurement Nationwide”). ...