On Friday, May 27, Chinese health authorities announced price cuts on three top-selling patented drugs of more than 50 percent, which is part of the Chinese government’s effort to make medicines more affordable.
The three drugs and their reduced price tags are as follows:
- AstraZeneca‘s Iressa (gefitinib): dropping from 15,000 yuan ($2291) to 7,000 yuan ($1069) a month
- GlaxoSmithKline‘s Viread (tenofovir disoproxil): dropping from 1,500 yuan ($229) to 490 yuan ($75) a month
- Betta Pharmaceuticals‘ Conmana (icotinib): dropping from 12,000 yuan ($1833) to 5,500 yuan ($840) a month
According to an article in Reuters: “[i]n exchange for the negotiated price reductions, drug companies can expect to sell much bigger volumes in the cost-conscious Chinese healthcare system.” The price cut is an effort by the government to make healthcare more affordable for patients.
The commission has been working with 15 government departments to conduct negotiations with drugmakers since October.
“Drug companies have long complained that China hasn’t updated the National Reimbursement Drug List since 2009,” according to an article in The Wall Street Journal, “which means that patients have had to pay out of pocket for most of the patented drugs approved in recent years.
In China, the world’s second-largest medicine market, the drive to lower the price of drugs is a challenge for drug firms.
Filed Under: Drug Discovery