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Chinese Pharmaceutical Policy Studies

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Drug procurement through central tender   //  Pharmaceutical commerce  // Drugs used in community   // Drug pricing and prices   //  Hospital regulations  //
Pharmaceutical industry   // New rural cooperative medical services // Prescription  // Urban employees' basic medical insurance   // Sectors combination

Government pricing methods

 

20000720 Suggestions on Reforming Drug Prices Management

 

 

20001225 Drug Government Pricing Methods

 

Principles for government pricing:

Government pricing should consider rational production and distribution costs and profits and the prices of drug within the same therapeutical class or substitute drugs; where necessary, international prices for the same drug should be considered;

Methods to set government prices: in principle, social average costs should be followed;

Rational price ratios based on active ingredient per unit should be kept for the same drug produced under the same conditions but with different formulation, packages distinguish GMP and non-GMP drugs, innovators and generics, new drug/premium drugs and general drugs:

Manufacturers can apply for special pricing permission for higher prices if their drugs have greater efficacy and safety or if the treatment cycle and expenses are much lower than those of other manufacturers producing the same drug

 

Formula to Calculate Drug Retail Price

Production costs and period expenses should be audited according to national accounting system;

Differentiation of drug sale expenses rate, maximum sale profit rate and price differentials

 

20001225 Notices on Distributing SPDC Pricing Drug List

 

 

20001121 Notices on the Adjustment of Pricing Drugs on B-list

 

 

20010201 Issues Related to Drug Separate Pricing

 

Scope: manufacturers can apply for special pricing permission for higher prices if their drugs have greater efficacy and safety or if the treatment cycle and expenses are much lower than those of other manufacturers producing the same drug;

 

Procedure: manufacturers who want to apply for separate pricing must submit their application reports and related materials (requirements refer to Annex) to local provincial price authorities to be first inspection; if successful, the materials and the suggestions in formal styles according to the results of first inspection should be transferred to SPDC;

 

Examining and approval: for most normal medicines, experts’ opinions should be referred to set specific price level;

 

20010717 Notices on Preparation of Drug Separate Pricing Verification Experts Conference for Some Anti-Infection Medicines

20010810 Drug Separate Pricing Verification Conference Proposed Regulation and Index System for Chemical Medicines Applying for Separate Pricing (tryout)

20020530 Supplementary Notices on Declaration Materials of Drug Separate Pricing

 

Methods for drug separate pricing verification conference: qualification and of experts, the procedure of the conference, requirements for the materials handed in by the enterprises, regulations for the experts;

Key points to verify:

 

Questioning on:

 

Auditing indicators system:

 

20040401 Notices on Further Improving Drug Separate Pricing Policy

 

 

20050107 Notices on Regulations of Drug Price Differences Ratio (Tryout)

20050328 Regulations on Implementing Drug Price Differences Ratio (Tryout)

 

 

20050801 Notices on Distributing NDRC Pricing Drug List

 

20051102 Notices on the Pilots of Pricing Some Drugs from Factory Prices

 

 

20060501 Regulations on Government Pricing

 

20060301 Cost Surveillance and Auditing Methods of Government Pricing Products

20061103 Implementing Cost Surveillance and Auditing Methods of Government Pricing Products

20070801 Technical Specification of Cost Audit When Pricing

 


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