(Yicai) Aug. 5 -- The 11th round of China’s centralized drug procurement program has seen record high bidder numbers, prompting the authorities to urge pharmaceutical firms to bid rationally and prevent destructive price wars.

Some 480 pharmaceutical firms submitted bids in 55 drug categories, averaging 15 bidders per category, according to figures released today by the National Healthcare Security Administration.

Of the categories up for tender, diprophylline injections -- used to treat respiratory conditions such as asthma, cardiac dyspnea, and bronchitis -- drew a record 45 bidders, topping last year’s 36. The next hotly contested drugs are ceftizoxime antibiotic jabs and famotidine for heartburn and ulcers, with 43 and 40 bidders.

Amid this cut-throat competition, the NHSA reminded drugmakers to carefully assess their own costs and returns and submit rational price offers in line with the principles of fair and honest participation.

Launched in 2018, the centralized drug procurement program aims to reduce public healthcare costs by organizing regular bulk tenders that secure low prices from drugmakers supplying public hospitals.

As the selection rules cap the winning bids at 10 per category, many firms will be eliminated, according to Jin Chunlin, director of the Shanghai Health Development Research Center. 

Despite efforts to optimize the process -- such as barring below-cost pricing -- the competition is still expected to result in substantial discounts, Jin added.

In the program’s 10th round last December, 385 products in 62 categories from more than 230 companies were selected. The average price cut exceeded 60 percent, with the new prices took effect in April.

Editors: Dou Shicong, Emmi Laine