China To Price-Control Foreign-Fund Drugs?

China is considering price controls on drugs produced byforeign-invested companies, Huang Jinfu, a vice director of the department of Comprehensive Economy at the State Pharmaceutical Administration, has told a securities conference, reports Reuters.

When these companies were first set up they could set their own prices, but this was not fair, he said. Foreign drug prices are much higher than domestic ones, and some of the latter are already controlled by the central government or local authorities. Of China's more than 3,000 drug-related firms, 20%-30% are losing money, he said. The central government plans to promote well-known products, improve management and create large-scale enterprises to boost the industry.