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Progress on drug pricing negotiations in China.
Mi Tang1, Peipei Song2, Jiangjiang He1,3
1Department of Health Policy Research, Shanghai Health Development Research Center (Shanghai Medical Information Center), Shanghai, China.
Bioscience Trends
|December 26, 2019
Summary
China
Area of Science:
- Healthcare Policy
- Pharmaceutical Economics
- Drug Pricing
Background:
- China's National Reimbursement Drug List (NRDL) plays a crucial role in drug accessibility.
- Previous drug pricing negotiations have influenced market dynamics and patient costs.
Purpose of the Study:
- To analyze the outcomes of the 2019 China drug pricing negotiations.
- To evaluate the impact of NRDL inclusion on drug prices and pharmaceutical innovation.
Main Methods:
- Analysis of drug pricing negotiation data from NHSA and MOHRSS.
- Comparison of 2019 negotiated drug list with previous lists.
- Examination of procedural innovations in the negotiation process.
Main Results:
- 71 new drugs and 27 re-negotiated drugs were added to the NRDL, with significant average price reductions (60.7% and 26.4% respectively).
- Digestive system medications (Western) and internal medicine (Traditional Chinese Medicine) saw the largest increases in additions.
- Over half of the included drugs are from Chinese enterprises, indicating a shift in domestic pharmaceutical manufacturing capabilities.
Conclusions:
- The 2019 drug pricing negotiations successfully reduced drug costs for patients and encouraged pharmaceutical innovation.
- Procedural innovations in the negotiation process, such as competitive bidding and enhanced communication, contributed to successful outcomes.
- Inclusion of patent drugs into the NRDL via negotiation is a key strategy for balancing healthcare costs and fostering industry growth.