Top Biz News

China to scrutinize drug prices

By Shan Juan (China Daily)
Updated: 2007-02-27 09:42

The government will more closely supervise the process for setting drug prices in an effort to bring more transparency to the drug industry.

Related readings:  Ministry vows to push drug prices down  China takes aim at fake, dangerous drugs  Beijing to launch campaigns for drug-free Olympics

A regulation published by theNational Development and Reform Commission(NDRC) lays out a five-step procedure for drug pricing that includes an investigation of production costs, expert evaluations and public hearings.

The regulation is to take effect on Thursday.

Under the new regulation, at least two drug price regulators are to be dispatched directly to drug companies to review production costs. The goal is to further standardize and regulate drug pricing.

Designated drug price regulators will be strictly prohibited from cashing in on their investigations or taking gifts of any sort, such as accepting invitations to banquets or trips abroad, from drug manufacturers.

The regulation also establishes a five-year work rotation system to keep drug regulators from becoming too entrenched or familiar with the people they are supposed to be monitoring.