China cut the maximum retail prices
for some cancer, immune and blood system drugs by an average of
17 percent, the country’s top planning agency said.
“Oncology, immune and blood system drugs are costly and
have a greater impact on patients, so lowering their prices can
effectively reduce the burden” on patients, the National
Development and Reform Commission said in a statement posted on
its website today.
The price cuts, effective October 8, comes as China seeks
to rein in the rising cost of health care for its aging
population. Policy makers are also expanding national health
insurance coverage to include more major diseases, and adding to
its list of essential drugs, for which prices are controlled by
the government, Health Minister Chen Zhu said yesterday.
“This latest move was in-line with past drug price cuts of
about 18 and 19 percent, so the market would see this as quite
reasonable,” said Gideon Lo, an analyst with Nomura Holdings
Inc. in Hong Kong. China has cut the price of drugs five times
since 2009, and more than 20 times since 2000, Lo said in a
telephone interview.
The latest round of price cuts, which affects 95 variety of
medicines and more than 200 formulations, will be applied mainly
on drugs with “high daily costs”, and includes patented and
innovative medicines, the NDRC said. Lower cost drugs were not
affected.
Blood products for which hospitals face a shortage of
supply had their prices raised to encourage production,
according to the statement.
“Companies that have products that are focused on these
specific therapies could see an impact to their prices,” Lo
said. Companies that may be affected include Jiangsu Hengrui
Medicine Co. (600276), which focuses on oncology drugs, Hong Kong-based
Lansen Pharmaceutical Holdings Ltd. (503), which makes immune system
drugs, and Hainan-based Sihuan Pharmaceutical Holdings Group
Ltd. (460), which makes both oncology and blood system medicines.
To contact Bloomberg News staff for this story:
Daryl Loo in Beijing at
dloo7@bloomberg.net
To contact the editor responsible for this story:
Jason Gale at
j.gale@bloomberg.net
Article source: http://www.businessweek.com/news/2012-09-17/china-cuts-prices-for-cancer-immune-blood-system-drugs