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China May Modify Single-Pricing Policy For Off-Patent Drugs

This article was originally published in PharmAsia News

Executive Summary

China's National Development and Reform Commission has requested related organizations to conduct a special investigation on the pricing and application quantity of off-patent drugs and generics, showing NDRC's intention to narrow the huge gap between both types of drugs. China's price policy allows off-patent drugs to enjoy a premium of 35 and 30 percent over GMP-produced generic injections and other formulations, respectively. However, industry sources disclose that off-patent drugs, of which overseas firms and joint ventures have the lion's share, are actually double to triple the price of generics. Many local pharmaceutical manufacturers accuse the policy of giving preferential treatment to foreign companies and joint ventures, at the expense of domestic enterprises. (Click here for more - Chinese Language)
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