China’s 11th round of national Volume-Based Procurement (VBP) came to an end in late October 2025 with all 55 tendered drug products awarded contracts across major therapeutic areas such as anti-infectives, oncology, diabetes, cardiovascular disease, lipid disorders, pain management, and allergy treatment. Participation reached a new high with over 46,000 healthcare institutions submitting volume forecasts and 445 drug companies placing 794 bids to win this business.
A total of 272 companies won contracts for 453 products, increasing the overall winning rate to 57% from 49% in the previous VBP round. There was an average of 14 companies competing for each product, an increase of almost two times that from previous VBP rounds, reflecting increased competition.
The winners were mostly leading domestic manufacturers, although the participation of multinational companies showed signs of strengthening. Germany’s B. Braun secured a bid with an originator drug, signaling a rise in acceptance of China’s centralized procurement rules for foreign firms.
In addition, authorities have made a shift from a focus solely on the price to a more long-term and sustainable approach as they implement safeguards for product quality and continuous supply. A Reference Price Mechanism has now been established to flag any abnormally low bids. There is now a “revival” channel that reconsiders non-winning products that meet certain requirements for quality and critical supply. These changes represent a significant departure from the aggressive pricing policy of the 10th VBP and indicate an evolving trend towards a more balanced procurement approach in China, where multiple factors are considered, not just price.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.