(Yicai Global) July 13 -- The Chinese government’s latest round of centralized drug procurement pushed average prices down 48 percent, saving the public health centers that buy them CNY18.5 billion (USD2.8 billion) a year, according to official figures.

A total of 327 products, covering 60 drug types, from 217 firms won the bidding, according to the results released yesterday by the National Healthcare Security Administration, which was set up in in 2018 to run the country’s bulk-buying drug program.

Over seven rounds, the NHSA has widened its scope to 294 drug types, making up 35 percent of the annual chemical and biological medicines bought by public health centers. The drugs selected this time treat 31 diseases including hypertension and diabetes, as well as lung and liver cancers.

The program’s widening scope is leading to major savings for patients. For example, lenvatinib mesilate, a liver cancer treatment, now costs CNY18 (USD2.70) for each capsule instead of CNY108 (USD16.10), saving CNY8,100 (USD1,205) per course.

As of this morning, 11 Chinese mainland-listed companies said they made successful bids in the latest round. Among them, Kelun Pharmaceutical stood out with 11 medicines. Others included Apichope Pharmaceutical, Huahai Pharmaceutical, and Hisun Pharmaceutical.

Though centralized procurement has cut drug prices, it has also helped drugmakers. Kelun Pharma, for instance, had no revenue last year from some of the medicines that won the bidding this time such as erlotinib hydrochloride and afatinib dimaleate for non-small cell lung cancer, it said.

Shares of Kelun Pharma [SHE: 002422] rose 1.4 percent today to close at CNY19.26 (USD2.86) each, after gaining as much as 2.6 percent at one point.

Editor: Emmi Laine, Xiao Yi