China cuts drug prices for the second time in 2011

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China cuts drug prices for the second time in 2011

Home/Policies & Legislation | Posted 23/09/2011 0 Post your comment

China has, for the second time this year, cut the price of drugs. The maximum retail price of 82 different pharmaceutical drug types has been lowered by an average 14% in a move to reduce patient’s medical bills.

The price adjustment came into effect on 1 September 2011, according to a statement by China’s National Development and Reform Commission (NDRC).

This latest round of price reductions aims to maintain the production and supply of cheap drugs and ease the financial burden for families, according to the NDRC statement.

In March 2011, the NDRC also lowered the maximum retail price of 162 different medicine types by an average of 21%. These previous price cuts, which came into effect on 28 March 2011, were expected to save Chinese patients nearly 10 billion yuan (US$1.55 billion) per year. The price changes mainly covered antibiotics and medicines that improve circulation, which are largely used in the treatment of infection and cardiovascular disease.

The NDRC said the price adjustments, while within its normal mandate of controlling drug prices, are also part of China’s reform of the healthcare system.

As part of this reform China aims to bring affordable medical care for the entire population by 2020. This is part of China’s US$125 billion plan to offer basic medical coverage to more than 90% of its residents by the end of 2011 [1]. Therefore, anywhere money can be saved, such as through drug price cuts, will obviously be an attractive option.

Reference

1. GaBI Online - Generics and Biosimilars Initiative. China’s Healthcare reform in 2010 [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2011 September 23]. Available from: www.gabionline.net/Policies-Legislation/China-s-healthcare-reform-in-2010

Source: NDRC