China introducing drug pricing reforms

A new policy document published by China's State Council includes measures to control drug pricing, consolidate drug manufacturers and distributors, and tighten regulation of sales representatives, according to Sidley Austin LLP.

According to the firm, which specializes in Asia-Pacific life sciences law, the policy directs relevant agencies to ensure that drugs launched in China are not priced higher than in the originating country or comparable neighboring countries. Agencies including China FDA are authorized to use conditional drug approvals, negotiations, procurement programs and health insurance coverage as tools to obtain price concessions. Sidley said the policy also states that patented drugs treating major diseases may be subject to compulsory licensing "when necessary."...