Wednesday, 20 November 2013

Low-cost drug list to change pharma in China


by Eric Mu
The Economic Information Daily, a business newspaper published by Xinhua News Agency ran a story on November 17 reporting that the National Development and Reform Commission (NDRC) may soon release a list of drugs that must be sold at low prices in China with the aim of reducing the financial burden of medical care on citizens and hospitals. 
The list may have a significant impact on the pharmaceutical industry: some out-of-production low-cost drugs will be protected and return to the market, while the makers of high cost drugs on the list will have their profit margins squeezed. The article also predicts that the pharmaceutical industry may soon see another round of mergers and acquisitions.
“Low-cost drugs” refers to the cheaper of the drug options used to treat a particular medical condition. The article quotes an informed source as saying that NDRC is expected to set the standard for low-cost drugs at a daily average cost of three yuan for western drugs.
Read more at Danwei

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