China to slash drug prices, saving 1.5 billion USD

China has vowed to lower the maximum retail prices of some antibiotics and circulatory system drugs by 21 percent on average beginning on March 28. It is estimated to save a total of nearly 10 billion yuan, or 1.5 billion dollar for citizens.
The price cut pushes China one crucial step further on its way to furthering its medical health system reform.
Most listed drugs, which include a total of 162 types, nearly 1,300 formulas and specifications, are currently extensively used in China to treat infections and cardiovascular disease, which means this action will bring about a significant reduction in expenses.
The price adjustment plan has a series of careful pricing procedures, including cost and price surveys and expert evaluation, and it eventually got approved by National Development and Reform Commission (NDRC), an NDRC official said on March 7.
The following are several adjustment highlights.
First, the expensive drugs will become cheap, and the inexpensive drugs will stay the same. It aims to strike a balance between improving people's livelihood and ensuring the supply of inexpensive medicines.
Second, the price of patented drugs will be lowered more moderately so adequate funds will go to support the research and innovation of new drugs.
Third, individually-priced drugs are to be further marked down to a price closer to that of uniformly-priced drugs. This ensures a fair and competitive market environment.
The NDRC official also revealed that there will be a further pricing plan on the basis of batches.
By Li Yancheng, People's Daily Online
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