China’s new drug procurement rules prioritise quality over price in a bid to curb cutthroat competition
Beijing’s new rules for state-led bulk tendering of medical drugs are the latest example of its “anti-involution” drive to combat cutthroat competition, a move analysts said would favour more established players.
“The centralised bulk procurement rules optimisation is a sign that the National Healthcare Security Administration is proactively pushing Beijing’s anti-involution agenda within the pharmaceutical sector as part of efforts to bolster domestic consumption,” Guotai Haitong Securities’ analysts said in a research note on Monday.
The revised rules were aimed at patients’ well-being, ensuring product quality, preventing bid rigging and discouraging the deployment of excessive and unsustainable low-price strategies, they said.
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