Drug prices negotiated downward

Prices of the drugs may be adjusted further when the contracts between the government and the manufacturers expire at the end of 2019, but they will also be subject to change if new medicines cause changes in exclusivity, he said.

Xu said two independent teams comprising experts with clinical, pharmaceutical, economic and medical insurance expertise evaluated the medicines, along with the medical insurance fund's capacity, before prices were set.

He added that the whole negotiation process, which took place on June 16, was videotaped for supervision checks.

Chen Wen, deputy director of Fudan University's Institute of Hospital Management Research in Shanghai, said, "It's a great innovation to bring a negotiation mechanism to the revision of the medical insurance directory this year.

"It's beyond doubt that price negotiations will play a bigger role in medical insurance."

The ministry's negotiations for the 44 drugs laid a good foundation for the establishment of a more regulated and complete negotiation mechanism, he added.