China to cut drug prices by 17%
Cancer, immunology and blood-related drugs in China will have their maximum retail prices cut by approximately 17%, according to China’s main economic planning agency, the National Development and Reform Commission (NDRC).
By reducing costs of medicine, China is hoping to improve its healthcare system and face the growing problem that around 260 million of its people are diagnosed with some form of chronic, long-term illness.
The 17% price cuts are expected to be taken out of the drug manufacturers and distributors margins, and will take effect on October 8th 2012. Pharmaceutical companies with diversified drug portfolios are less likely to be affected, according to analysts.
China is still a popular place for drug makers to go to for growth as it is expected to become the third-largest pharma market this year, behind the US and Japan.
China Cuts Drug Prices (Wall Street Journal)
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