Medicine Price Drop

Since China unveiled a pilot program in 11 cities to cut drug prices through group procurement in November 2018, most drug prices on the list have dropped, reducing the economic burden on patients, particularly those suffering from chronic diseases and terminal illness. Compared with a year ago, the prices of 25 medicines have dropped by 52 percent on average, mainly through the reduction of transaction costs. The price of certain off-patent generic drugs has been cut by 96 percent. Medical institutions in the pilot program in Xiamen, Fujian Province, have over the past six months issued over 1.3 million prescriptions involving these medicines, saving procurement fees of 123 million yuan (US$17.5m). The pilot program is expected to expand nationwide soon. Medical experts said the next priority is to ensure the quantity and quality of drugs on the list and keep the number of drug options stable. In addition, public health regulators need to strengthen supervision and stop cooperating with pharmaceutical enterprises which produce shoddy products.