China ups pricing pressure with roll out of bulk-buy scheme

China is changing the way it buys generic products, seeking to pressure drumakers and drive down prices.

After a pilot last year saw new bulk-buying rules tested in Beijing, Shanghai, and a handful of other Chinese cities, the scheme is now being expanded to include 25 provinces and regions in the country.

Under the new rules, state institutions will group together to buy medicines at a higher volume, and for a lower cost. Successful bidders could enjoy the bulk of the market share for the product in that region, while prices for some products have plunged by more than half.