China’s pilot drug procurement program, covering 11 cities, will not only reduce medication prices and force pharmaceutical companies to adjust their strategies, but will also ease financial pressure on ordinary people, the
Economic Daily reported.
According to the Xinhua News Agency, in the new group buying system, participating cities specify the quantity of each purchase to give manufacturers clear expectations, since previously the bids determined the price, but they could not guarantee how much was actually purchased. Some only participated in the bidding but did not really purchase medications, and this hiked the price of drugs even more. Based on the current centralized procurement system, the prices of 25 generic drugs dropped by an average of 52 percent, compared with the minimum purchase prices of similar medications in 2017.
The news portal eastday.com said that the pilot program will put an end to China's decentralized drug procurement system and reduce the chance of malpractice in the bidding process. It will reduce the price of expensive drugs and put an end to corrupt practices in procurement.
Pharmaceutical companies will benefit as they will know how much is being ordered which will stabilize the market. Generic drugs which fail to meet market standards will be eliminated in the bidding process, the Economic Information Daily said.
Old Version
