China Briefing - April 2012 (May 21, 2012)


Pharmaceuticals, Medical Devices, Health Care & Life Sciences


• NDRC: Chinese government to review carefully drug pricing differences between ex-factory and bid prices (NBD News 2012-04-05) – April 5, 2012 Pharmaceutical companies determine bid prices for drugs sold to hospitals based on a number of factors. The National Development and Reform Commission (NDRC) issued a circular recently, requiring its local counterparts and price bureaus to strengthen the review and the monitoring of drug ex-factory prices. The successful bidders may be disqualified if the gap between the ex-factory price and the bid price is too large. Whether drug prices will be reduced because of this new policy is unclear.

• NDRC Provisional Drug Pricing Measures on Mark-ups not Likely to be Released Soon; 2012 EDL Implemented in 15 Provinces (USCBC Health Update 2012-04-25) – April 28, 2012 The National Development and Reform Commission (NDRC)’s Provisional Measures for Drug Price Circulation Administration introduced February 2012 is unlikely to be released in the near term, according to Yu Mingde, head of the China Pharmaceutical Enterprise Association. The Provisional or Interim Measures, which would have been implemented July 1, 2012, would have decreased the drug circulation mark-up rate from 40 percent to 30 percent. Xinhua reported that industry watchers thought the new measure would be difficult to implement and would lead to drug price increases, which had been a key point of debate. Xinhua also reported that the 2012 Essential Drugs List (EDL) has currently been implemented in 15 provinces, with an average price cut of 49 percent. Shandong Province has seen the largest cuts (63 percent), whereas Zhejiang Province and others have had comparatively fewer (33 percent) cuts so far this year.

Please see full Briefing below for further information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.