The Guangdong Provincial Government has announced the launch of the eighth batch of national drug collections, set to take place at the end of the month. This initiative aims to lower the prices of 39 drugs used for chronic and common diseases, with an average reduction of 56%.
Centralized drug procurement involves the medical insurance department leading a group of medical institutions to negotiate lower prices with pharmaceutical companies based on the high demand for these medicines. The Provincial Medical Security Bureau recently issued a notice regarding the centralized procurement of the eighth batch of nationally organized drugs, confirming that the event will take place in Guangdong on July 31.
The selected drugs for the national drug collection include those used for anti-infection, cardiovascular and cerebrovascular diseases, anti-allergic, and mental illness treatments. In total, 39 drugs have been successfully purchased at reduced prices, targeting common and chronic diseases. The average price reduction across these drugs is 56%. It is estimated that the implementation of these selected varieties for centralized procurement will save approximately 16.7 billion yuan per year, based on the agreed purchase volume.
A total of 251 companies participated in the bidding process for this centralized procurement, with an average of 6.5 companies selected for each drug category. This helps to diversify and stabilize the drug supply. Additionally, a new supply model called “one master and two backups” has been introduced for 5 clinical emergency medicines and drugs that are prone to shortages. This model aims to enhance the resilience of the supply chain and reduce the risk of supply security issues, compared to the ordinary “one master and one backup” supply model.
The notice specifies that the procurement cycle for the eighth batch will be from July 31, 2023, to July 30, 2024. This provides clarity and guidelines for the healthcare industry in relation to the procurement and use of these drugs.
By reducing the prices of essential medicines, the Guangdong Provincial Government aims to improve accessibility and affordability for patients with chronic and common diseases. This initiative reflects the government’s commitment to providing quality healthcare services to its citizens.