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China’s MOH Further Standardizes Centralized Drug Purchase Online

This article was originally published in PharmAsia News

Executive Summary

China's Ministry of Health and five other state agencies recently signed an opinion draft on further standardizing centralized drug purchases in heath care institutions. According to the document, online centralized drug purchase implementation will be led by the government, with each province (including autonomous regions and municipalities) as a purchasing unit. To reduce drug distribution costs, pharmaceutical manufacturers will now be the direct bidders instead of drug wholesalers. Industry analysts believe that the policy will facilitate the establishment of a new drug purchase and sales system: first, market focus of drug manufacturing will be heightened; the drug distribution structure will change, as will sales patterns of prescription drugs. However, analysts think these will have little impact on the current drug agent model. (Click here for more - Chinese Language)

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