Menovo's Diabetes Drug Tentatively Selected in China's National Procurement Program

Chinese pharmaceutical firm Menovo (603538.SH) announced that its diabetes medication, Alogliptin, has been tentatively selected in the latest round of China's national centralized drug procurement. This development marks a critical step toward the commercial launch of the drug in the country's vast public healthcare market.

Bid Details

In a company statement, Menovo confirmed that its wholly-owned subsidiary, Ningbo Menovo Tiankang Pharmaceutical Co., Ltd., participated in the 12th round of the National Centralized Drug Procurement. The subsidiary's bid for its oral immediate-release formulation of Alogliptin was preliminarily accepted by the National Joint Drug Procurement Office, the body that organizes the program.

This program, also known as Volume-Based Procurement (VBP), is a key policy in China designed to lower drug prices in exchange for guaranteed purchase volumes at public hospitals. Winning a bid is crucial for gaining significant market share for generic drugs.

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Market Implications

For Menovo, this selection is particularly significant as it paves the way for the drug's first sales in the domestic market. The company received the Drug Registration Certificate for its Alogliptin Benzoate tablets from China's National Medical Products Administration (NMPA) in October 2024.

However, according to the announcement, the product had generated no domestic sales as of the end of June 2026. Securing a place in the VBP program is expected to drive substantial sales volume and establish a market presence for the drug, which is used to treat type 2 diabetes. While VBP wins typically involve steep price cuts that can impact profit margins, they are essential for market entry and large-scale adoption in China.