More and more drugs are purchased by Volume Based Procurement in China today. In exchange for large volume sales, prices have dropped for many drugs by 50-90%. Sometimes, the winners of these procurements sell drugs with patent infringement. To avoid this issue, the China National Intellectual Property Administration and the National Healthcare Security Administration will now work together to not allow infringing drugs to be purchased via central procurement platforms.
Accordingly, purchasing entities must confirm that the drugs they purchase do not infringe existing patents. If infringement is determined, a resolution must meet China law. The Intellectual Property Administration will be in charge of determining if a violation has occurred. They will notify the infringing drug company, and their bid will be nullified. Also, the National Healthcare Security Administration will remove the drug from its centralized procurement platform.