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China’s NDRC Formulates Policies For Drug Price Reduction

This article was originally published in PharmAsia News

Executive Summary

China's National Development and Reform Commission has put another round of drug price reduction on its agenda for discussion. This time it will also look at single-pricing for off-patent drugs, "quality price for quality drugs" and healthcare institution drug price increases. Participating experts disclose that a slew of policies to lower drug prices will be released late 2008, which will mainly be directed at pharmaceutical MNCs to reduce their overly-high drug pricing. Currently, healthcare institutions may raise the cost price of drugs by 15 percent as income. NDRC will identify a mandatory standard such that institutions can only increase a fixed amount once the drug price exceeds the standard, a measure to prevent indiscriminate selection of high-priced drugs for greater profits. (Click here for more - Chinese Language)
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