(Yicai Global) Feb. 4 -- China’s latest centralized drug procurement program is expected to push the prices of nearly 160 products down as much as 96 percent in May, slashing the nation’s annual outlay on drugs by CNY12.4 billion (USD1.9 billion).

The 158 medicines, which were included in a preliminary list, treat conditions such as hypertension, diabetes, digestive diseases, mental illnesses, and malignant tumors, the National Healthcare Security Administration said in a statement yesterday. Prices are expected to be slashed by an average 52 percent.

The centralized procurement scheme, a cornerstone of the government’s Healthy China 2030 Plan, kicked off in November 2018. It aims to cut the cost of generic and patented drugs through economy-of-scale buying, thereby easing the financial burden on patients. The previous round was last August.

Some 152 firms sought to participate in the program and 118 got mentioned in the preliminary list. Five of them are foreign-funded firms, including multinationals from Germany, France, India, and Japan. Basel-based Novartis International was the most successful among the five, followed by Germany's Boehringer Ingelheim, and Cambridge-based AstraZeneca.

The scheme has achieved remarkable results. Since the first round, prices have been cut by about 54 percent, according to NHSA Deputy Director Chen Jinfu. Last year, actual purchasing volume was more than double what was expected, resulting in savings of more than CNY100 billion (USD15.5 billion), Chen said.

Editor: Emmi Laine, Xiao Yi