Foreign pharma faces changing landscape - (Shanghai Daily via NewsPoints Desk)

  • An analysis by consultancy Ernst & Young found that foreign drugmakers will need to adjust their practices and pricing to manage the changing Chinese marketplace, Shanghai Daily reported Tuesday.

  • "Companies will need to take a closer look at local regulations when introducing new medicines," commented Sharry Wu, a partner of EY China's advisory services.

  • According to IQVIA data, that China's drug market will grow to $140 billion to $170 billion by 2023, versus $137 billion last year.

  • A centralised bulk procurement program operated by the China National Medical Product Administration was launched in 11 cities last November, while Ernst & Young expects more foreign companies to participate in the next round of bidding.

  • Shirley Zhou, director of EY China's advisory services, noted that more flexible pricing may be required for innovative drugs that command high premiums in first- and second-tier cities, while companies will also need to focus more on lower-tier cities.

  • Wu further stated that multinational drugmakers must lower their operational costs and ensure compliance at all levels in response to government efforts to lower drug prices and healthcare costs.

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