News
A list of low-cost drugs may be released within the year, presenting new opportunities for relevant pharmaceutical companies.
Date:
07 Feb,2021
Following the announcement at a recent pharmaceutical pricing symposium held by the National Development and Reform Commission and other departments—indicating that a list of low-cost drugs would be introduced within the year—Gansu Province yesterday released a catalog featuring 182 low-cost medications. Earlier, Guangdong had already taken the lead by publishing a list of over 400 such drugs, with transactions expected to begin in December.
Experts in pharmaceutical pricing have noted that, based on information from the recently held price conference, China's drug prices are set to become more reasonable. Key priorities for 2014 will include tackling inflated prices, safeguarding affordable medications, and ensuring a stable supply—hallmarks of the country's ongoing pharmaceutical price reform efforts.
According to our reporter, as early as July of this year, senior officials from the National Health and Family Planning Commission led a nationwide survey aimed at addressing the issue of excessively high drug prices. The proposed approach is to first select several pilot cities—specifically from the 17 national healthcare reform pilot cities and provincial-level reform pilot cities—to conduct price negotiation trials for drugs that already enjoy robust market competition. If these pilots yield significant positive results, the initiative could be scaled up across the board. Additionally, the strategy emphasizes the coordinated advancement of healthcare, medical insurance, and pharmaceutical sectors, while placing greater emphasis on reforms related to drug policies and the drug supply assurance system.
"Some low-cost drugs have fallen out of production altogether because their already razor-thin profit margins, driven by repeatedly slashed tender prices, no longer make them viable for manufacturers," a sales executive from Chen Lizhi Pharmaceutical Factory, a subsidiary of Baiyunshan, told our reporter. Notably, during the recent Guangdong International Economic Development Conference, Nobel laureate in Physiology or Medicine Dr. Ferid Murad reportedly urged policymakers to reintroduce affordable medications into the market. He explained that the current retail price caps imposed by the Chinese government on low-cost drugs are actually stifling their growth. "Since pharmaceutical companies can’t turn a profit from producing these medicines, they simply lose the incentive to keep manufacturing them," he noted. "Without profitability, there’s naturally no funding available to invest in research and development of even more advanced, higher-priced drugs. Meanwhile, patients—who rely on these affordable options—are forced to switch to pricier alternatives, placing an even heavier financial burden on themselves. This creates a vicious cycle, harming both drugmakers and consumers alike."
"Clearly, generic drug companies that can meet essential needs like clinical medication while also offering quality advantages are poised to seize new growth opportunities," said a pharmaceutical industry researcher from a brokerage firm.
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