China Restructures its Drug Pricing Regime
In early May 2015, China’s National Development and Reform Commission (“NDRC”), together with six other agencies, issued aCircular Concerning Opinions on Advancing the Drug Pricing Reform (“Opinions”).1 The Opinions initiate a groundbreaking reform of the drug pricing system in China. Until now, pursuant to China’s Drug Administration Law and related policies and regulations, the government has either set specific prices, or set price ceilings, i.e., maximum retail prices (“MRPs”), for many drugs in China, including those that are reimbursed via its state- run insurance plans. The Opinions remove many of the constraints on drug prices, permitting those prices to be set by the market, and also provide some details of a planned reform to better set reimbursement standards and rates for drugs...
