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Capping Pharmaceutical Drugs’ Prices

Nov. 30, 2010

In early December 2010, China’s National Development and Reform Commission (“NDRC”) released a new list capping the retail prices of pharmaceutical drugs that are included in China’s National Reimbursement Drug List (“NRDL”). This list includes 174 products whose retail prices are to be reduced. In addition, the NDRC has excluded 16 products from the “separate pricing status” list. It is estimated that the average price reduction will be 19%.
The companies mostly affected by this latest reform are foreign firms, which manufacture 65% of the drugs on the list.