Drug price regulation has been an issue in terms of price quality and was a very hard move for global companies. The central government announced that a new regulation details will be published by July but the objective is already clear: free-market pricing for pharmaceuticals.
To Ms. Chen, partner and director of L.E.K Consulting, ‘it means the [commission] recognizes that forcing prices down and focusing purely on price does sacrifice drug safety, quality and availability’. Until now, the central government was encouraging provinces to reduce healthcare costs and prices to make healthcare services more affordable.
Source: The Wall Street Journal Publication Date: 2014-05-19