Mixed Reactions To Draft Of Drug Distribution Profit Limits In China
This article was originally published in PharmAsia News
Executive Summary
The Chinese drug sector showed mixed reactions to the recently publicized draft on pharmaceutical distribution markup caps.
The Chinese drug sector showed mixed reactions to the recently publicized draft on pharmaceutical distribution markup caps. Among those, Jointown Pharmaceutical Group Co Ltd. Deputy Party Secretary Cheng Botao remarked that hospitals will continue purchasing expensive drugs as the caps fail to delink drug prices and profits. Some industry members found loopholes including raising factory prices, hospitals dividing medicine packages, and consequently higher drug prices. Others indicated that the narrowed distribution profit will cause many SMEs to close and fuel M&A. Following the release of the draft, some drug makers have shifted to directly supply medicines to hospitals. The industry generally expects more policies favoring large companies in the future. (Click Here For More - Chinese Language
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"Industry Pessimism Over New Drug Delivery Policy; Mark-Up Cancellation Could Be Solution" - jiankang.cntv.cn (2/25/2012)