In a significant boost for India’s pharmaceutical exports, Cipla, Natco Pharma, Hetero Labs, and Annora Pharma have been selected by China under its volume-based procurement (VBP) program to supply essential generic medicines to public hospitals.
The move marks a breakthrough for Indian drugmakers in gaining access to China’s tightly regulated healthcare market, which has traditionally favored domestic producers.
Hetero Labs and Cipla have secured contracts to supply Dapagliflozin, a widely prescribed diabetes drug, across selected Chinese provinces. Annora Pharma will supply Oxcarbazepine tablets used in epilepsy treatment, while Natco Pharma has won the bid to supply Olaparib, an oncology medication.
The latest round of China’s VBP initiative covered 55 drugs across therapeutic areas such as oncology, anti-infectives, and allergy care. About 272 companies and 453 products were pre-qualified for bidding. The VBP framework aims to reduce healthcare costs by aggregating demand from public hospitals and negotiating lower prices from suppliers.
Public hospital sales of Dapagliflozin alone were estimated at RMB 5.35 billion (over USD 700 million) in 2024, highlighting the vast potential of China’s centralized procurement market.
Experts note that while Indian firms may face thin margins due to China’s aggressive pricing model, the win signals increasing acceptance of Indian generic quality and enhances India’s position in the global pharmaceutical supply chain.
For India, often called the pharmacy of the world, this development also marks progress in its long-standing effort to expand exports to China and strengthen bilateral cooperation in affordable healthcare solutions.
(With inputs from agencies)
