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China Aims to Tame Cancer Gene Test Pricing With Bulk-Buying Plan

Published: Aug. 29, 2025  5:55 p.m.  GMT+8
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Following a similar move for noninvasive prenatal testing, China is now poised to apply its powerful volume-based procurement system to cancer gene testing for the first time in a move that could reshape the industry.

On Aug. 14, the Jiangsu Provincial health care Security Administration released a draft plan for the province’s eleventh round of bulk purchasing for medical supplies, this time specifically targeting cancer gene-testing services. The plan was open for public comment until Aug. 29.

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  • Jiangsu plans to use volume-based procurement for cancer gene testing, aiming to standardize pricing and lower costs, with NGS test caps set at 7,500 yuan ($1,040) for labs and 10,000 yuan ($1,390) for hospitals.
  • Only certified PCR and small-panel NGS tests qualify; larger, complex NGS panels and LDTs are mostly excluded.
  • The procurement echoes a 2024 prenatal test program that cut prices by 50%; industry expects higher volumes but uncertain profitability.
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China is preparing to implement its influential volume-based procurement policy in the field of cancer gene testing, a move anticipated to disrupt and standardize the industry much as previous initiatives have affected other healthcare sectors like noninvasive prenatal testing (NIPT) [para. 1]. On August 14, 2024, the Jiangsu Provincial Health Care Security Administration released a draft plan aimed at centralizing bulk purchasing for cancer gene-testing services—a proposal open for public comment until August 29 [para. 2]. Gene testing is essential for mid- and late-stage cancer patients to determine the suitability of targeted drug therapies, and repeated testing becomes necessary as resistance develops [para. 3].

Two principal technologies dominate the market: PCR (polymerase chain reaction) and NGS (next-generation sequencing), offering differing scopes and price points. PCR examines a small number of genetic sites and costs a few hundred to a thousand yuan, while NGS can analyze up to hundreds of genes and can cost tens of thousands of yuan. NGS has gained popularity in recent years due to its broader data output [para. 4]. Unlike pharmaceuticals, cancer gene testing prices are largely unregulated, leading to dramatic inter-provincial and inter-hospital disparities for the same or similar tests, heavily impacting out-of-pocket expenses for patients [para. 5]. For instance, a test costing 3,000 yuan at the company base could be sold for 5,000–9,000 yuan to patients, with wide variation across hospitals and labs [para. 6]. Most of the profit margin is retained by hospitals and doctors, not the testing companies, resulting in financial challenges for these firms, which are compounded by recent anti-corruption crackdowns on the medical sector [para. 7].

With local-level bulk purchasing appearing imminent, industry observers are debating whether this could signal a turning point for struggling companies [para. 8]. According to the plan, hospitals must forecast at least 80% of the previous year’s testing volume for a two-year procurement period. Both hospitals and third-party labs may bid, but hospitals face more relaxed participation rules and can charge higher prices [para. 9][para. 10]. Bids are capped: PCR tests at 280 yuan per genetic site; NGS tests at 800 yuan per gene, with further reductions for larger panels, ultimately limiting the maximum charges for NGS tests to 7,500 yuan for labs and 10,000 yuan for hospitals if testing more than 10 genes [para. 11]. The expected result is significant price reductions and greater consistency; for example, small-panel NGS tests previously priced at 5,000 yuan will see a cap of 3,900 yuan [para. 12].

Some in the industry, like Gen-Mind’s CEO Tian Geng, view this as beneficial for mature tests but caution that complex multi-gene analyses are not ready for such procurement due to technical and certification limitations [para. 13]. The procurement is restricted to officially approved products, mostly small-panel NGS and PCR tests, leaving advanced laboratory-developed tests excluded [para. 15][para. 16]. Only one large-panel NGS test has been authorized [para. 17].

The draft does not penalize hospitals for not meeting volume commitments, mirroring the earlier NIPT precedent, which reduced service costs by 50% and saw increases in in-house testing volume [para. 18][para. 19][para. 20]. The biggest gain for NIPT was its addition to Jiangsu’s official medical services list, qualifying it for insurance reimbursement [para. 22]. There is cautious optimism that bulk purchasing for cancer testing might yield similar benefits [para. 23]. The market is also being reshaped by anti-corruption measures targeting referral-based models, favoring companies with extensive equipment or volume deals [para. 24][para. 25].

While initial drafts referenced a foreign investment exclusion list that could have affected major U.S.-listed competitors, this was removed in the final version [para. 28]. Although standardization is seen as positive, experts like Tian advise a gradual and differentiated approach to procurement because cancer genomics is diverse and rapidly evolving [para. 29].

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Who’s Who
BGI Genomics
BGI Genomics is one of the companies offering approved NGS tests in China. Their tests are mostly for small panels covering common drug targets. This indicates their involvement in the cancer gene testing market, particularly in the certified product segment that's subject to new bulk purchasing regulations.
Shihe Gene
Shihe Gene is a Jiangsu-based company that offers a 425-gene lung cancer test. This test is currently the only large-panel NGS test approved, which some industry insiders believe limits market competition and may not be ideal for bulk purchasing.
Geneplus
Geneplus (思路迪) is one of the companies offering certified NGS tests for cancer. These tests are primarily small panels covering common drug targets. The company is actively involved in the evolving landscape of cancer gene testing in China, especially with the introduction of bulk purchasing programs.
Amoy Diagnostics
Amoy Diagnostics is one of the companies offering approved NGS tests in China. These tests primarily cover small panels for common drug targets. The Jiangsu procurement plan will allow Amoy Diagnostics to compete in the market as the field of certified products is narrowed, focusing on approved testing kits.
3D Medicines
3D Medicines is a company that offers approved NGS tests, primarily small panels covering common drug targets. These tests are included in the Jiangsu procurement plan, which aims to standardize pricing and reduce costs for cancer gene testing services.
Burning Rock Biotech
Burning Rock Biotech (燃石医学) is an industry leader in cancer gene testing. This U.S.-listed firm was initially a concern for some due to a 2021 "negative list" on foreign investment, which could have excluded it from bulk purchasing programs. However, a review revealed that this clause was removed from the updated 2024 list.
Genetron Holdings
Genetron Holdings (泛生子) is an industry leader in cancer gene testing. This US-listed company was initially a concern for some in the industry due to a reference in a draft procurement proposal to a "negative list" for foreign investment. However, this clause was removed from the updated 2024 version of the list, indicating Genetron and similar companies can likely participate in the new bulk purchasing initiatives.
Gen-Mind
Tian Geng is the founder and CEO of Gen-Mind (吉因加). He supports the use of bulk purchasing for mature cancer gene testing products like PCR and small-panel NGS tests, viewing it as beneficial for patients. However, he cautions that complex NGS tests (e.g., hundreds of genes, immunotherapy response) are not yet suitable for bulk procurement due to their complexity, high costs, and limited certified providers.
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What Happened When
2021:
A 'negative list' for foreign investment was published that could have excluded certain foreign companies from participation in procurement, but this clause was later removed.
By 2024:
The previous 'negative list' clause regarding foreign investment was removed from the updated version.
2024:
Hospitals that performed cancer gene testing in this year must submit a purchase-demand forecast of at least 80% of their 2024 volume under the new procurement cycle.
October 2024:
Jiangsu pioneered a bulk-purchasing program for noninvasive prenatal testing (NIPT), lowering prices by 50% to around 600 yuan.
Late 2024:
After implementation of the NIPT bulk purchasing program, most hospitals in Jiangsu began purchasing kits and conducting tests in-house, and some companies saw sample volume increases of about 15%.
Aug. 14, 2025:
The Jiangsu Provincial healthcare Security Administration released a draft plan for the eleventh round of bulk purchasing for medical supplies, specifically targeting cancer gene-testing services.
Aug. 29, 2025:
Deadline for public comment on Jiangsu's draft bulk purchasing plan for cancer gene-testing services.
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