Foreign Drugmakers Face Pressure to Lower Prices in China - (Bloomberg via NewsPoints Desk)

  • Although price caps on most drugs in China are set to expire on June 1, pressure remains on many foreign drugmakers to reduce the prices of drugs in the country, Bloomberg reported.
  • Starting late last year, several provincial governments implemented new bidding systems to lower drug prices, while multinational companies are being pushed to reduce their prices to compete with domestic firms.
  • The R&D-Based Pharmaceutical Association Committee said that some foreign drugmakers have elected to stop selling certain products to public hospitals in regions where prices are pushed too low.
  • Meanwhile, Credit Suisse analysts noted that the lifting of price caps will benefit several domestic drugmakers with good quality records, including Jiangsu Hengrui Medicine and Sino Biopharmaceutical.
  • Conversely, foreign drugmakers, such as GlaxoSmithKline, Pfizer and Roche, have dropped out of 61 percent of bids on average in the wealthy eastern province of Zhejiang.
  • Sun Zhigang, vice minister for health-care reform and medicine policy at China's National Health and Family Planning Commission, stated that China's drug procurement policies "are equal and fair to foreign and local manufacturers."

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