China awards generics contracts to lowest bidders
China’s drug pricing overhaul has seen the average cost of drugs drop by more than half (59%), the country’s Joint Procurement Office (JPO) announced this week.
The office has released the results of the expansion of the centralised drug procurement programme, known as ‘4+7’, announced as a pilot late last year.
The pilot was rolled out in 11 cities across the country and saw drugmakers bid for preferential market access, with contracts being awarded to those who offered the cheapest price.
According to the JPO, policymakers were keen to expand the 4+7 scheme nationwide after the pilot “exceeded expectations”.
Of the 25 generic drugs included in the pilot scheme, the average price dropped by 59% compared with the prices of those same drugs in 2018.
Yesterday, the JPO announced that the national expansion of the scheme has secured a further 25% discount on the average price of drugs offered under the 4+7 pilot.
Seven foreign pharmaceutical companies won contracts in the latest round of bidding, including Sanofi, AstraZeneca, Bristol-Myers Squibb, and Merck & Co, FiercePharma reported.
While the 4+7 pilot awarded exclusive market access to the lowest bidder, the national rollout will approve to three suppliers for each drug.
The results of the expansion are likely to be keenly observed around the world, as pressure grows on pharmaceutical companies to reduce drug prices.
Yesterday, LSIPR reported that UK Labour Party leader Jeremy Corbyn pledged to create a publicly owned generics manufacturer that would produce lower-cost versions of drugs for the country’s National Health Service (NHS).
A Labour government, he said, would also employ compulsory licensing to provide greater public access to drugs.
Meanwhile, across the Atlantic, the cost of HIV medication Truvada (emtricitabine/tenofovir) has sparked anger from some Democratic lawmakers, such as Alexandra Ocasio-Cortez.
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