Giant price cuts: the cost of access to China’s healthcare market - China’s latest business and technology news - SupChina

Giant price cuts: the cost of access to China’s healthcare market – China’s latest business and technology news


The Ministry of Human Resources and Social Security is the government body that negotiates with drugmakers over the price of medicines eligible to be reimbursed by health insurance. On July 19, the Ministry published 36 new additions to the list (in Chinese). Fierce Pharma reports that “Western-style cancer meds — 16 of them — make up the majority of the drugs enlisted this time,” and that “Roche is the biggest winner, with four meds added to the new list.” Other foreign companies with newly added products include AstraZeneca, GlaxoSmithKline, Merck, Novartis, Bayer, Janssen unit, and Sanofi.

The pharma companies will see a huge volume boost from having their drugs included in the list, but they have had to pay for it with significant discounts: most of the medicines will have a mandated 44 percent price cut in order to be eligible.


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Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company's newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.

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