China pharmaceutical procurement in 2024 continued to evolve under major healthcare reforms focused on reducing drug costs, enhancing accessibility, and fostering local pharmaceutical innovation. With the National Healthcare Security Administration (NHSA) leading centralized procurement efforts, the government successfully negotiated lower drug prices while maintaining the supply of essential medicines. Additionally, the growing emphasis on biopharmaceuticals, generic drug substitution, and digital health solutions reinforced China’s position as the world’s second-largest pharmaceutical market.
Total Government Spending on Pharmaceuticals
In 2024, China’s government allocated approximately ¥2.5 trillion ($350 billion) toward pharmaceutical procurement and healthcare services. This budget was distributed across key areas, including:
- ¥800 billion ($112 billion) for essential medicines, including generics and off-patent originator drugs.
- ¥500 billion ($70 billion) for innovative drug procurement, particularly for oncology, diabetes, and cardiovascular diseases.
- ¥300 billion ($42 billion) for vaccine procurement, including COVID-19 boosters, influenza, and HPV vaccines.
- ¥150 billion ($21 billion) for rare disease and orphan drugs.
- ¥750 billion ($105 billion) for hospital and emergency care pharmaceuticals, including traditional Chinese medicine (TCM).
This investment underscores China’s commitment to expanding healthcare access while supporting local pharmaceutical production.
Top Buyers in Government Pharmaceutical Procurement
China’s pharmaceutical procurement system operates through a mix of national and regional buyers to ensure affordable and accessible medicines across public healthcare facilities. The key buyers include:
- National Healthcare Security Administration (NHSA) – Oversees China’s bulk drug procurement and ensures cost-effective purchasing.
- Public Hospitals and Healthcare Facilities – The largest buyers, receiving government and social insurance funding for medicine purchases.
- China National Medical Products Administration (NMPA) – Regulates and facilitates pharmaceutical procurement for public health needs.
- China National Pharmaceutical Group (Sinopharm) – A leading state-owned pharmaceutical procurement and distribution entity.
- Provincial and Municipal Health Authorities – Manage regional drug procurement to meet local healthcare needs.
By centralizing procurement through these entities, China continues to improve pricing efficiency and supply chain transparency.
Top Pharmaceutical Products Procured in 2024
China’s pharmaceutical procurement in 2024 focused on high-demand medications aimed at addressing key public health challenges. The top procured medicines include:
- Oncology Drugs – Strong demand for immunotherapies and targeted therapies as cancer treatment innovations expand.
- Diabetes Medications – Increased procurement of insulin and GLP-1 receptor agonists to address rising diabetes cases.
- Cardiovascular Drugs – Essential for managing hypertension and cholesterol levels.
- Traditional Chinese Medicine (TCM) – Integrated into public healthcare alongside Western pharmaceuticals.
- Vaccines – Government procurement of COVID-19 boosters, influenza, and HPV vaccines remains a priority.
- Antibiotics and Antiviral Medications – Focus on combating antimicrobial resistance with advanced antibiotics.
By prioritizing these drugs, China aims to enhance treatment accessibility while supporting domestic pharmaceutical production.
Key Trends in 2024
1. Expansion of the Volume-Based Procurement (VBP) Program
The VBP program now includes over 500 drugs, lowering prices and increasing generic medicine adoption across hospitals.
2. Growth in Biopharmaceutical Investments
Government funding for biosimilars, cell therapies, and gene editing technologies has positioned China as a leader in biotech innovation.
3. Accelerated Approvals for Foreign Drugs
The NMPA streamlined regulatory processes, allowing faster access to globally developed innovative drugs.
4. Traditional Chinese Medicine Integration
Public hospitals now prioritize TCM-based treatments alongside conventional Western medicine.
5. Digital Health and AI in Procurement
AI-powered procurement platforms optimize drug purchasing, improving transparency and efficiency across supply chains.
Major News and Updates
- Expansion of VBP to 500+ Drugs – China’s Volume-Based Procurement program now covers more chronic and specialty medications.
- Sino Biopharma’s Breakthrough in Oncology – New PD-1 inhibitors and CAR-T therapies received government procurement backing.
- Increase in Domestic Manufacturing Support – The government introduced subsidies to boost local drug production and reduce import reliance.
- Pfizer and AstraZeneca Local Manufacturing Deals – Global pharma giants partnered with Chinese firms to expand domestic production of oncology and cardiovascular drugs.
- Regulatory Reforms for Faster Approvals – NMPA accelerated drug approval times by 30%, improving access to innovative treatments.
Future Outlook and Predictions
1. Greater Focus on Generic and Biosimilar Adoption
The government is set to expand generic substitution policies to further reduce healthcare costs.
2. Expansion of Biopharmaceutical Capabilities
More investment in domestic biotech firms will strengthen China’s global position in biologics and cell therapies.
3. AI and Blockchain Integration in Procurement
Advanced analytics and blockchain technology will enhance transparency and efficiency in drug purchasing.
4. Strengthened Local Pharma Industry
Government incentives for domestic manufacturers will reduce dependence on imported medicines.
5. Public-Private Collaborations in R&D
Increased partnerships between international pharmaceutical companies and Chinese biotech firms will drive next-generation drug innovations.
Conclusion
China’s pharmaceutical procurement strategy in 2024 reflects a strong commitment to affordability, innovation, and healthcare accessibility. By expanding the Volume-Based Procurement (VBP) program, increasing biotech investments, and accelerating drug approvals, the country continues to shape the future of global pharmaceutical markets. With the integration of AI, digital health solutions, and public-private partnerships, China is set to drive further advancements in drug procurement efficiency and medical research.
#ChinaPharma #HealthcareReform #PharmaceuticalProcurement #ChinaHealthcare #GlobalTenders #NHSA #VBPProgram #Sinopharm #NMPA #Biopharma #GenericDrugs #OncologyDrugs #DiabetesCare #CardiovascularDrugs #TraditionalChineseMedicine #Vaccines #PharmaInnovation #MedicalResearch #DigitalHealthcare #EProcurement #FutureOfPharma