Low price drug out of drug companies will be out

Beijing officially launched a centralized procurement of essential drugs. This year, more than 3,000 grass-roots health agencies have all requested to participate. The bidding price will be dynamically adjusted against the lowest prices in all provinces and cities. The Beijing Municipal Bureau of Health predicts on the 21st that the price of drugs will be reduced by an average of 30%. In addition, low-cost drugs need to be supplied in sufficient quantities, otherwise drug companies will be deprived of bid or deal qualification.

On the 21st, the Beijing Municipal Bureau of Health released the news that in 2012 Beijing's basic drug procurement has officially started. This year, more than 3,000 grassroots medical and health institutions within all districts and counties in the city plan to participate in centralized procurement.

According to the person in charge of the Beijing Municipal Health Bureau, the procurement scope includes 519 medicines. Including 307 drugs in the National Essential Drug Directory. Drugs for narcotic drugs, psychotropic substances, infectious diseases and parasitic diseases for free treatment, vaccines for national immunization programs, family planning drugs, and Chinese herbal medicines are excluded.

In addition, the 212 kinds of drugs currently used in the community in Beijing are also covered, including some low-priced medicines with a price of less than RMB 3, shortages of supply of medicines, and basic infusion products such as glucose injections.

It is reported that this centralized procurement will be based on the lowest bid price in the country and will be dynamically adjusted. At the same time, after the centralized procurement of community hospitals, the second- and third-tier hospitals will also refer to drug prices and establish a price linkage mechanism.

The variety of drugs and the price cycle for this centralized procurement will be at least 12 months. The Beijing Municipal Bureau of Health estimates that this year's centralized procurement is expected to purchase 4 billion yuan annually. Through centralized procurement, the average decline in medicines can reach around 30%.

In recent years, there has been a shortage of low-cost medicines in many provinces and cities. The commonly-named drugs “win the bid”—pharmaceutical companies are reluctant to produce and hospitals cannot purchase.

In this regard, the Beijing Municipal Health Bureau stated that in this venture, companies must submit a “supply commitment letter.” According to the commitment, the enterprise supply price should not be higher than the current provincial-level centralized purchase price of pharmaceuticals, and within the centralized procurement cycle “ Sufficient supply." Otherwise, the bid or deal qualification will be deprived.