Unreasonable control of drug bidding may be abolished

This time, the action began, all over the country with local characteristics of the drug bidding control policy (including but not limited to), or explicitly or implicitly with local protection, administrative monopoly control policy, in 2018 will face a major adjustment or even abolition.

For pharmaceutical companies, in the drug bidding and procurement process, once by the policy to protect the advantages of the enterprise challenge, once by the "sidelined" enterprises may bring market opportunities.

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The State Council issued a document, that is, "the State Council on the establishment of a fair competition review system in the construction of the market system" (Screenshot 3); the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce and other departments to jointly formulate a work program, that is, "2017-2018 clean up the current exclusion of restrictions on competition policy measures of the work program" (Screenshot 2); the National Health and Family Planning Commission formally issued a letter to start the action, January 29, the National Health and Family Planning Commission website released "the National Health and Family Planning Commission", "the National Health and Family Planning Commission". Planning Commission's website published the "State Health Methodology System Letter [2018] No. 86", i.e., "Letter from the General Office of the National Health and Family Planning Commission on Soliciting Opinions on the Exclusion and Restriction of Competition of the Commission's Existing Policy and Measure Documents" (Screenshot I).

Simply looking at the above document itself (National Health System System Letter [2018] No. 86), it seems to have nothing to do with the centralized bidding and procurement control policy for medicines implemented across the country.

However, upon closer examination, it is found that the document explicitly requires "cleaning up local protection, designated transactions, market barriers, etc. contained in the policies and measures (including existing regulations, normative documents and other policy measures) involving the economic activities of market entities at the commission level."

Obviously, the centralized drug procurement policies (including but not limited to) currently being implemented across the country are included in the category of "normative documents and other policies", which will be cleaned up to contain local protection, designated transactions, market barriers and other content, and clearly lists the six aspects of the focus of the clean-up.

Then look at the work program developed by the NDRC.

On December 5, 2017, the National Development and Reform Commission (NDRC), the Ministry of Finance, the Ministry of Commerce and other ministries and commissions issued the document "NDRC Price Supervision 〔2017〕 No. 2091", which is the "Work Program for Cleaning up the Existing Exclusionary and Restrictive Policies and Measures on Competition in 2017-2018" (hereinafter referred to as the "NDRC's Work Program", such as the screenshot in Figure 2), the full text of which is attached below.

(Screenshot 2)

The NDRC's work program, which sets out clear requirements for the cleanup steps, advances in five stages: self-checking and sorting out, reviewing and ranking, public clearing and scrapping, summarizing and reporting, and supervising and checking stage.

For the third stage (public clearance and abolition), it is required that by May 2018, all departments of the State Council and local people's governments at all levels and their subordinate departments will form conclusions on the handling of policies and measures cleared to exclude and restrict competition, and abolish or adjust them in accordance with procedures.

Then study the spirit of the State Council's documents - on June 1, 2016, the State Council issued the document "Guo Fa [2016] No. 34", i.e., "Opinions of the State Council on the Establishment of a Fair Competition Review System in the Construction of the Market System" (hereinafter referred to as "the State Council's Opinions", as shown in Screenshot 3, the content of the document can be browsed on the website of the State Council).