Everyone knows that the China drug market is very large. However, national and provincial tenders, Volume Based Procurement (VBP), the DRG system and other recent measures have significantly lowered pricing and reimbursements. To get drug reimbursement in China, a company needs to get their drug on the National Reimbursement Drug List (NDRL), but to do so most foreign drug companies need to lower their prices a lot. In early July, China’s Wang Wentao spoke during a roundtable discussion in Beijing, in which he stated that foreign drug companies should have more development opportunities in China, and he also commented on drug reimbursement too. While nothing has been put in stone, Wang said that as China develops its local drug business, there should be more occasions for foreign drug companies to benefit. Wang also said that China will open communication channels on a variety of topics of concern to foreign drug companies. In addition, last month at the World Economic Summit in China, Premier Li Qiang said that the Chinese government has reduced prices too much. Where all this will lead, nobody knows. However, recognition of Chinese drug pricing and straightforward, direct dialogue may help.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.
Source used in the article:https://www.gtlaw.com/en/insights/2023/2/china-on-the-move-lesson-from-chinas-national-negotiation-of-drug-prices-in-2022